Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 18, 2014 | Jun. 28, 2013 |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Select Income REIT | ' | ' |
Entity Central Index Key | '0001537667 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $484.20 |
Entity Common Stock, Shares Outstanding | ' | 49,832,477 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Real estate properties: | ' | ' |
Land | $732,509 | $675,092 |
Buildings and improvements | 913,948 | 620,686 |
Real estate properties, gross | 1,646,457 | 1,295,778 |
Accumulated depreciation | -67,223 | -46,697 |
Real estate properties, net | 1,579,234 | 1,249,081 |
Acquired real estate leases, net | 129,426 | 95,248 |
Cash and cash equivalents | 20,025 | 20,373 |
Restricted cash | 42 | 42 |
Rents receivable, net of allowance for doubtful accounts of $936 and $644, respectively | 55,335 | 38,885 |
Deferred leasing costs, net | 5,599 | 4,816 |
Deferred financing costs, net | 4,834 | 5,517 |
Due from related persons | ' | 585 |
Other assets | 7,364 | 16,105 |
Total assets | 1,801,859 | 1,430,652 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Revolving credit facility | 159,000 | 95,000 |
Term loan | 350,000 | 350,000 |
Mortgage notes payable | 27,147 | 27,778 |
Accounts payable and accrued expenses | 20,655 | 19,703 |
Assumed real estate lease obligations, net | 26,966 | 20,434 |
Rents collected in advance | 8,637 | 6,518 |
Security deposits | 8,359 | 9,335 |
Due to related persons | 2,404 | 1,701 |
Total liabilities | 603,168 | 530,469 |
Commitments and contingencies | ' | ' |
Shareholders' equity: | ' | ' |
Common shares of beneficial interest, $0.01 par value: 75,000,000 and 50,000,000 shares authorized, respectively, 49,829,541 and 39,282,592 shares issued and outstanding, respectively | 498 | 393 |
Additional paid in capital | 1,160,894 | 876,920 |
Cumulative net income | 144,343 | 51,251 |
Cumulative other comprehensive income (loss) | -25 | 25 |
Cumulative common distributions | -107,019 | -28,406 |
Total shareholders' equity | 1,198,691 | 900,183 |
Total liabilities and shareholders' equity | $1,801,859 | $1,430,652 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Rents receivable, allowance for doubtful accounts (in dollars) | $936 | $644 |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, shares authorized | 75,000,000 | 50,000,000 |
Common shares, shares issued | 49,829,541 | 39,282,592 |
Common shares, shares outstanding | 49,829,541 | 39,282,592 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues: | ' | ' | ' |
Rental income | $159,011 | $105,559 | $91,775 |
Tenant reimbursements and other income | 29,312 | 17,231 | 16,847 |
Total revenues | 188,323 | 122,790 | 108,622 |
Expenses: | ' | ' | ' |
Real estate taxes | 20,271 | 15,370 | 14,709 |
Other operating expenses | 16,111 | 8,426 | 8,237 |
Depreciation and amortization | 31,091 | 14,860 | 11,205 |
Acquisition related costs | 2,002 | 2,470 | ' |
General and administrative | 12,423 | 8,203 | 5,528 |
Total expenses | 81,898 | 49,329 | 39,679 |
Operating income | 106,425 | 73,461 | 68,943 |
Interest expense (including amortization of debt premiums and deferred financing fees of $1,462, $950 and $0, respectively) | -13,763 | -7,565 | ' |
Income before income tax benefit (expense) and equity in earnings of an investee | 92,662 | 65,896 | 68,943 |
Income tax benefit (expense) | 96 | -290 | ' |
Equity in earnings of an investee | 334 | 269 | ' |
Net income | 93,092 | 65,875 | 68,943 |
Other comprehensive income: | ' | ' | ' |
Equity in unrealized gain (loss) of an investee | -50 | 25 | ' |
Other comprehensive income (loss) | -50 | 25 | ' |
Comprehensive income | $93,042 | $65,900 | $68,943 |
Weighted average common shares outstanding (in shares) | 44,565 | 27,122 | ' |
Net income per common share (in dollars per share) | $2.09 | $2.43 | ' |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ' | ' | ' |
Interest expense, amortization of debt premiums and deferred financing fees | $1,462 | $950 | $0 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Shares | Additional Paid In Capital | Cumulative Net Income | Cumulative Other Comprehensive Income | Cumulative Common Distributions | Ownership Interest |
In Thousands, except Share data, unless otherwise specified | |||||||
Balance at Dec. 31, 2010 | $898,097 | ' | ' | ' | ' | ' | $898,097 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 68,943 | ' | ' | ' | ' | ' | 68,943 |
Owner's net distributions | -62,240 | ' | ' | ' | ' | ' | -62,240 |
Issuance of shares, net (in shares) | ' | 1,000 | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 904,800 | ' | ' | ' | ' | ' | 904,800 |
Balance (in shares) at Dec. 31, 2011 | ' | 1,000 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 65,875 | ' | ' | 51,251 | ' | ' | 14,624 |
Owner's net distributions | -919,424 | ' | ' | ' | ' | ' | -919,424 |
Issuance of shares, net | 876,944 | 393 | 876,551 | ' | ' | ' | ' |
Issuance of shares, net (in shares) | ' | 39,249,000 | ' | ' | ' | ' | ' |
Share grants | 369 | ' | 369 | ' | ' | ' | ' |
Share grants (in shares) | ' | 32,592 | ' | ' | ' | ' | ' |
Other comprehensive income | 25 | ' | ' | ' | 25 | ' | ' |
Distributions to common shareholders | -28,406 | ' | ' | ' | ' | -28,406 | ' |
Balance at Dec. 31, 2012 | 900,183 | 393 | 876,920 | 51,251 | 25 | -28,406 | ' |
Balance (in shares) at Dec. 31, 2012 | ' | 39,282,592 | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Net income | 93,092 | ' | ' | 93,092 | ' | ' | ' |
Issuance of shares, net | 283,502 | 105 | 283,397 | ' | ' | ' | ' |
Issuance of shares, net (in shares) | ' | 10,500,000 | ' | ' | ' | ' | ' |
Share grants | 577 | ' | 577 | ' | ' | ' | ' |
Share grants (in shares) | ' | 47,200 | ' | ' | ' | ' | ' |
Forfeited share grants (in shares) | ' | -251 | ' | ' | ' | ' | ' |
Other comprehensive income | -50 | ' | ' | ' | -50 | ' | ' |
Distributions to common shareholders | -78,613 | ' | ' | ' | ' | -78,613 | ' |
Balance at Dec. 31, 2013 | $1,198,691 | $498 | $1,160,894 | $144,343 | ($25) | ($107,019) | ' |
Balance (in shares) at Dec. 31, 2013 | ' | 49,829,541 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $93,092 | $65,875 | $68,943 |
Adjustments to reconcile net income to cash provided by operating activities | ' | ' | ' |
Depreciation | 20,531 | 10,493 | 7,860 |
Net amortization of debt premiums and deferred financing fees | 1,463 | 950 | ' |
Amortization of acquired real estate leases | 10,768 | 4,369 | 3,143 |
Amortization of deferred leasing costs | 858 | 653 | 578 |
Provision for losses on rents receivable | 352 | -23 | 579 |
Straight line rental income | -12,990 | -5,869 | -5,045 |
Other non-cash expenses | 1,536 | 508 | ' |
Equity in earnings of equity investments | -334 | -269 | ' |
Change in assets and liabilities: | ' | ' | ' |
Restricted cash | ' | -42 | ' |
Rents receivable | -3,812 | 2,031 | -2,792 |
Deferred leasing costs | -1,641 | -2,051 | -1,037 |
Other assets | -975 | 185 | 93 |
Due from related persons | 585 | -585 | ' |
Accounts payable and accrued expenses | 1,392 | 1,226 | 491 |
Rents collected in advance | 2,119 | 289 | 972 |
Security deposits | -976 | 1,054 | 29 |
Due to related persons | -188 | 1,701 | ' |
Cash provided by operating activities | 111,780 | 80,495 | 73,814 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Real estate acquisitions | -373,937 | -419,610 | -10,000 |
Real estate improvements | -5,669 | -2,670 | -1,574 |
Investment in Affiliates Insurance Company | ' | -5,335 | ' |
Cash used in investing activities | -379,606 | -427,615 | -11,574 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of common shares, net | 283,502 | 363,657 | ' |
Proceeds from borrowings | 407,000 | 993,500 | ' |
Payments on borrowings | -343,217 | -548,553 | ' |
Deferred financing fees | -1,194 | -6,567 | ' |
Repayment of demand note | ' | -400,000 | ' |
Distributions to common shareholders | -78,613 | -28,406 | ' |
Owner's net distributions | ' | -6,138 | -62,240 |
Cash provided by (used in) financing activities | 267,478 | 367,493 | -62,240 |
Increase (decrease) in cash and cash equivalents | -348 | 20,373 | ' |
Cash and cash equivalents at beginning of period | 20,373 | ' | ' |
Cash and cash equivalents at end of period | 20,025 | 20,373 | ' |
Supplemental disclosures: | ' | ' | ' |
Interest paid | 12,128 | 5,407 | ' |
Income taxes paid | 159 | ' | ' |
Non-cash investing activities: | ' | ' | ' |
Real estate acquired by issuance of shares and assumption of demand note | ' | -913,286 | ' |
Real estate acquired by assumption of mortgage notes payable | ' | -26,000 | ' |
Additions to real estate included in accounts payable and accrued expenses | -1,095 | -2,782 | ' |
Non-cash financing activities: | ' | ' | ' |
Issuance of common shares | 577 | 513,647 | ' |
Issuance of demand note | ' | 400,000 | ' |
Assumption of mortgage notes payable | ' | $26,000 | ' |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2013 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
Note 1. Basis of Presentation | |
Our consolidated financial statements include the 30 properties (251 buildings, leasable lands and easements), or the Initial Properties, which were owned by CommonWealth REIT and its subsidiaries, or CWH, until they were contributed to us by CWH on February 16, 2012. Our consolidated financial statements are presented as if we were a legal entity separate from CWH at all times for the periods presented, despite our not being in existence until December 19, 2011 and the fact that thereafter we were a wholly owned consolidated subsidiary of CWH until March 12, 2012. Because of the significant changes resulting from our initial public offering, or IPO, in March 2012, the financial results reported for the years ended December 31, 2012 and 2011 are not indicative of our expected future results. | |
Organization
Organization | 12 Months Ended |
Dec. 31, 2013 | |
Organization | ' |
Organization | ' |
Note 2. Organization | |
We were organized as a Maryland real estate investment trust, or REIT, on December 19, 2011 as a wholly owned subsidiary of CWH. We were organized to primarily own and invest in single tenant, net leased properties. | |
On February 16, 2012, CWH contributed the Initial Properties to us. In return, we issued to CWH: (i) 22,000,000 common shares (including 1,000 common shares initially issued to CWH in December 2011 in connection with our formation) and (ii) a $400,000 demand promissory note, or the CWH Note. | |
On March 6, 2012, we commenced a public offering of 8,000,000 common shares. The sale of these shares and an additional 1,200,000 of our common shares pursuant to the full exercise of our IPO underwriters' option to purchase additional shares closed on March 12, 2012 and we then became a public company. We used the net proceeds from the IPO and borrowings under our revolving credit facility to repay in full the CWH Note. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Note 3. Summary of Significant Accounting Policies | ||||||||
Basis of Presentation. Prior to our IPO, CWH owned us, and we have presented certain historical transactions at CWH's historical basis. Historically, substantially all of the rental income received by CWH from the tenants of our Initial Properties were deposited in and commingled with CWH's general funds. Certain capital investments and other cash requirements of our Initial Properties were paid by CWH and were charged directly to our Initial Properties. General and administrative costs of CWH were allocated to our Initial Properties based on the historical costs of the real estate investments for our Initial Properties as a percentage of CWH's historical cost of all of CWH's real estate investments until the completion of our IPO on March 12, 2012, or the Closing Date. In our opinion, and in accordance with applicable accounting guidance, this method for allocating general and administrative expenses is reasonable. However, actual expenses may have been different from allocated expenses if the Initial Properties had operated as a separate entity, and those differences might be material. Since the Closing Date, we have recorded general and administrative expenses at our direct cost. The preparation of financial statements in conformity with generally accepted accounting principles, or GAAP, requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for doubtful accounts, purchase price allocations and useful lives of fixed assets. | ||||||||
These consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are 100% owned directly or indirectly by us. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. | ||||||||
Real Estate Properties. As required by GAAP, we have generally adopted the accounting treatment and policies for our properties and business which were previously employed by CWH. We recorded our Initial Properties at cost to CWH and record our other properties at our cost and provide depreciation on real estate investments on a straight line basis over estimated useful lives generally ranging from 7 to 40 years. We and CWH estimated the purchase price allocations and the useful lives of our properties. In some circumstances, we and CWH engaged 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 and CWH allocated the purchase prices of our properties to land, building and improvements based on determinations of the relative fair values of these assets assuming the properties are vacant. We and CWH determined the fair value of each property using methods similar to those used by independent appraisers. For properties qualifying as acquired business under Accounting Standards Codification 805 Business Combinations, we and CWH allocated 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 or CWH) 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 and CWH allocated a portion of the purchase price to acquired in place leases and tenant relationships in an amount, if any, equal to the excess of (i) the purchase price paid for each property, after adjusting existing acquired in place leases to market rental rates, over (ii) the estimated fair value of the property, as if vacant. We and CWH allocated 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 considered 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 or CWH. 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 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 changes to rental income of ($1,011), ($587) and ($354) during the years ended December 31, 2013, 2012 and 2011, 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, or Lease Origination Value, over the terms of the associated leases. Such amortization, which is included in depreciation and amortization expense, totaled $9,758, $3,781 and $2,788 during the years ended December 31, 2013, 2012 and 2011, respectively. If a lease is terminated prior to its stated expiration, we write off the unamortized amounts relating to that lease. | ||||||||
At December 31, 2013 and 2012, our acquired real estate leases and assumed real estate lease obligations were as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Acquired real estate leases | ||||||||
Capitalized above market lease values | $ | 44,851 | $ | 45,192 | ||||
Less: accumulated amortization | (14,556 | ) | (12,171 | ) | ||||
| | | | | | | | |
Capitalized above market lease values, net | 30,295 | 33,021 | ||||||
Lease Origination Value | 117,491 | 71,879 | ||||||
Less: accumulated amortization | (18,360 | ) | (9,652 | ) | ||||
| | | | | | | | |
Lease Origination Value, net | 99,131 | 62,227 | ||||||
| | | | | | | | |
Acquired real estate leases, net | $ | 129,426 | $ | 95,248 | ||||
| | | | | | | | |
| | | | | | | | |
Assumed real estate lease obligations | ||||||||
Capitalized below market lease values | $ | 37,776 | $ | 29,547 | ||||
Less: accumulated amortization | (10,810 | ) | (9,113 | ) | ||||
| | | | | | | | |
Assumed real estate lease obligations, net | $ | 26,966 | $ | 20,434 | ||||
| | | | | | | | |
| | | | | | | | |
Future amortization of net intangible acquired lease assets and liabilities to be recognized over the current terms of the associated leases as of December 31, 2013 are estimated to be $12,621 in 2014, $12,639 in 2015, $12,187 in 2016, $10,948 in 2017, $11,288 in 2018 and $42,777 thereafter. | ||||||||
We recognize impairment losses on real estate investments when indicators of impairment are present and the estimated undiscounted cash flow from our real estate investments is less than the carrying amount of such real estate investments. Impairment indicators may include declining tenant occupancy, lack of progress releasing vacant space, tenant bankruptcies, low long term prospects for improvement in property performance, weak or declining tenant profitability, cash flow or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of a property. We review our properties for impairment quarterly, or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. If indicators of impairment are present, we evaluate the carrying value of the related property by comparing it to the expected future undiscounted cash flows expected to be generated from that property. If the sum of these expected future undiscounted cash flows is less than the carrying value, we reduce the net carrying value of the property to its estimated fair value. The determination of undiscounted cash flow includes consideration of many factors including income to be earned from the investment, holding costs (exclusive of interest), estimated selling prices, and prevailing economic and market conditions. Based on these procedures performed, no impairments exist on any of our properties as of December 31, 2013 and 2012. | ||||||||
Certain of our real estate assets contain hazardous substances, including asbestos. We believe the asbestos at our properties is contained in accordance with current environmental regulations and we have no current plans to remove it. If these properties were demolished today, certain environmental regulations specify the manner in which the asbestos must be removed and we could incur substantial costs complying with such regulations. Certain of our industrial lands in Hawaii may require environmental remediation, especially if the use of those lands is changed; however, we do not have any present plans to change the use of those land parcels or to undertake this environmental cleanup. In general, we do not have any insurance designated to limit any losses that we may incur as a result of known or unknown environmental conditions which are not caused by an insured event, such as, for example, fire or flood, although some of our tenants may maintain such insurance. However, as of December 31, 2013 and 2012, accrued environmental remediation costs totaling $8,150 and $8,644, respectively, were included in accounts payable and accrued expenses in our consolidated balance sheets. Because of the indeterminable timing of the remediation, these amounts have not been discounted to present value. These accrued expenses relate to maintenance of our properties for current uses. The reduction in the accrued balance during 2013 primarily reflects remediation costs paid during 2013. We do not believe that there are environmental conditions at any of our properties that will have a material adverse effect on us. However, no assurances can be given that such conditions are not present in our properties or that other costs we incur to remediate contamination will not have a material adverse effect on our business or financial condition. Charges for environmental remediation costs are included in other operating expenses in the consolidated statements of income and comprehensive income. | ||||||||
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 capitalized brokerage, legal and other fees associated with the successful negotiation of leases, which are amortized to depreciation and amortization expense on a straight line basis over the terms of the respective leases. Deferred leasing costs totaled $7,858 and $6,438 at December 31, 2013 and 2012, respectively, and accumulated amortization of deferred leasing costs totaled $2,259 and $1,622 at December 31, 2013 and 2012, respectively. Future amortization of deferred leasing costs to be recognized during the current terms of the existing leases as of December 31, 2013, are estimated to be $847 in 2014, $777 in 2015, $627 in 2016, $575 in 2017, $469 in 2018 and $2,304 thereafter. | ||||||||
Deferred Financing Fees. Deferred financing fees include capitalized issuance or assumption costs related to borrowings, which are amortized to interest expense over the terms of the respective loans. Deferred financing fees totaled $7,761 and $6,567 at December 31, 2013 and 2012, respectively, and accumulated amortization of deferred financing fees totaled $2,927 and $1,050, at December 31, 2013 and 2012, respectively. Future amortization of deferred financing fees to be recognized with respect to our loans as of December 31, 2013, are estimated to be $1,914 in 2014, $1,914 in 2015, $751 in 2016, $256 in 2017 and $0 thereafter. | ||||||||
Other Assets. Other assets consist primarily of deposits on potential acquisitions, our investment in AIC (as described in Note 9) and prepaid real estate taxes and other prepaid expenses. We account for our investment in Affiliates Insurance Company, or AIC, using the equity method of accounting. Significant influence is present through common representation on the boards of trustees or directors of us and AIC. Our Managing Trustees are also owners of Reit Management & Research LLC, or RMR, which is the manager of us and AIC, and each of our Trustees is a director of AIC. See Note 9 for a further discussion of our investment in AIC. | ||||||||
Revenue Recognition. Rental income from operating leases is recognized on a straight line basis over the lives of lease agreements. We defer the recognition of contingent rental income, such as percentage rents, until the specific targets that trigger the contingent rental income are achieved. Contingent rental income recognized totaled $1,330, $1,552 and $1,102 for the years ended December 31, 2013, 2012 and 2011, respectively. Tenant reimbursements and other income include property level operating expenses and capital expenditures reimbursed by our tenants as well as other incidental revenues. Certain tenants are obligated to pay directly their obligations under their leases for insurance, real estate taxes and certain other expenses and these costs, which have been assumed by the tenants under the terms of their respective leases, are not reflected in our consolidated financial statements. To the extent any tenant responsible for these costs under their respective lease defaults on its lease or it is deemed probable that the tenant will fail to pay for such costs, we would record a liability for such obligation. | ||||||||
Allowance for Doubtful Accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability or unwillingness of certain tenants to make payments required under their leases. The computation of the allowance is based on the tenants' payment histories and current credit profiles, as well as other considerations. | ||||||||
Income Taxes. We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and, accordingly, we generally will not be subject to federal income taxes provided we distribute our taxable income and meet certain other requirements to qualify as a REIT. We are, however, subject to certain state and local taxes. | ||||||||
Cumulative Other Comprehensive Income. Cumulative other comprehensive income consists of the unrealized gains and losses related to our investment in AIC, as described in Note 9. | ||||||||
Reclassifications. Certain reclassifications have been made to the prior years' financial statements to conform to the current year's presentation. | ||||||||
Use of Estimates. Preparation of these financial statements in conformity with GAAP requires us to make estimates and assumptions that may affect the amounts reported in these consolidated financial statements and related notes. The actual results could differ from these estimates. | ||||||||
Net Income Per Share. We compute net income per common share using the weighted average number of common shares outstanding. We had no common share equivalents during the periods presented. | ||||||||
New Accounting Pronouncements. Effective January 2013, we adopted Financial Accounting Standards Board, or FASB, Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This update is the culmination of the FASB's deliberation on reporting reclassification adjustments from accumulated other comprehensive income, or AOCI. This standard does not change the current requirements for reporting net income or other comprehensive income. However, it requires disclosure of amounts reclassified out of AOCI in their entirety, by component, on the face of the statement of operations or in the notes thereto. Amounts that are not required to be reclassified in their entirety to net income must be cross referenced to other disclosures that provide additional detail. This update was effective prospectively for interim and annual reporting periods beginning after December 15, 2012. The implementation of this update did not cause any material changes to the disclosures in, or the presentation of, our condensed consolidated financial statements. | ||||||||
Real_Estate_Properties
Real Estate Properties | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Real Estate Properties | ' | |||||||||||||||||||||||||||
Real Estate Properties | ' | |||||||||||||||||||||||||||
Note 4. Real Estate Properties | ||||||||||||||||||||||||||||
During the year ended December 31, 2013, we acquired seven properties (11 buildings) with a combined 1.4 million rentable square feet and a combined weighted average lease term, based on rental revenues, of 10.7 years for an aggregate purchase price of $384,820, excluding closing costs. We allocated the purchase prices of these acquisitions based on the estimated fair values of the acquired assets and assumed liabilities. The Addison, TX acquisition was accounted for as an acquisition of assets. All other acquisitions during the year ended December 31, 2013 were accounted for as business combinations. Details of these completed acquisitions are as follows: | ||||||||||||||||||||||||||||
Date | Location | Properties\ | Square | Purchase | Land | Building and | Acquired | Assumed | Other | |||||||||||||||||||
Buildings | Feet | Price(1) | Improvements | Real Estate | Real Estate | Assumed | ||||||||||||||||||||||
Leases | Lease | Liabilities | ||||||||||||||||||||||||||
Obligations | ||||||||||||||||||||||||||||
Jan-13 | Addison, TX(2) | 2-Jan | 553,799 | $ | 105,000 | $ | 10,107 | $ | 94,893 | $ | — | $ | — | $ | — | |||||||||||||
Feb-13 | Provo, UT | 2-Jan | 125,225 | 34,720 | 3,400 | 25,938 | 5,382 | — | — | |||||||||||||||||||
Mar-13 | San Antonio, TX | 1-Jan | 99,986 | 18,600 | 3,197 | 12,175 | 3,507 | (279 | ) | — | ||||||||||||||||||
Jul-13 | Richmond, VA | 1-Jan | 310,950 | 143,600 | 13,849 | 109,823 | 19,928 | — | — | |||||||||||||||||||
Oct-13 | Vernon Hills, IL(3) | 1-Jan | 99,579 | 18,000 | 4,095 | 9,882 | 4,023 | — | (1,095 | ) | ||||||||||||||||||
Dec-13 | San Jose, CA(3) | 4-Feb | 250,731 | 64,900 | 22,768 | 36,278 | 13,964 | (8,110 | ) | — | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
11-Jul | 1,440,270 | $ | 384,820 | $ | 57,416 | $ | 288,989 | $ | 46,804 | $ | (8,389 | ) | $ | (1,095 | ) | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||||||||||
Purchase price excludes acquisition related costs. | ||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||
Property was acquired and simultaneously leased back to the seller in a sale/leaseback transaction. We capitalized acquisition costs of $232 related to this transaction. | ||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||
The allocation of purchase price is based on preliminary estimates and may change upon the completion of (i) third party appraisals and (ii) our analysis of acquired in place leases and building valuations. | ||||||||||||||||||||||||||||
We committed $1,526 for expenditures related to approximately 884,000 square feet of leases executed during 2013. Committed but unspent tenant related obligations based on existing leases as of December 31, 2013, were $4,328. | ||||||||||||||||||||||||||||
The future minimum lease payments scheduled to be received by us during the current terms of our leases as of December 31, 2013 are as follows: | ||||||||||||||||||||||||||||
Year | Minimum | |||||||||||||||||||||||||||
Lease | ||||||||||||||||||||||||||||
Payment | ||||||||||||||||||||||||||||
2014 | $ | 159,233 | ||||||||||||||||||||||||||
2015 | 161,793 | |||||||||||||||||||||||||||
2016 | 156,677 | |||||||||||||||||||||||||||
2017 | 154,696 | |||||||||||||||||||||||||||
2018 | 151,409 | |||||||||||||||||||||||||||
Thereafter | 1,134,602 | |||||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||
$ | 1,918,410 | |||||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||
Tenant_Concentration_and_Segme
Tenant Concentration and Segment Information | 12 Months Ended |
Dec. 31, 2013 | |
Tenant Concentration and Segment Information | ' |
Tenant Concentration and Segment Information | ' |
Note 5. Tenant Concentration and Segment Information | |
We operate in one business segment: ownership of properties that include buildings and leased industrial lands that are primarily net leased to single tenants, with no one tenant accounting for more than 10% of our total revenues. A "net leased property" or a property being "net leased" means that the building or land lease requires the tenant to pay rent and pay, or reimburse us, for all, or substantially all, property level operating expenses and capital expenditures, such as real estate taxes, insurance, utilities, maintenance and repairs, other than, in certain circumstances, roof and structural element related expenditures; in some instances, tenants instead reimburse us for all expenses in excess of certain amounts included in the stated rent. We define a single tenant leased building or land parcel as a building or land parcel with at least 90% of its rentable square footage leased to one tenant. Our buildings and lands are primarily leased to single tenants; however, we do own some multi tenant buildings on the island of Oahu, HI. | |
Indebtedness
Indebtedness | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Indebtedness | ' | |||||||
Indebtedness | ' | |||||||
Note 6. Indebtedness | ||||||||
At December 31, 2013 and 2012, our outstanding indebtedness consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving credit facility, due in 2016 | $ | 159,000 | $ | 95,000 | ||||
Term loan, due in 2017 | 350,000 | 350,000 | ||||||
Mortgage note payable, 5.950% interest rate, including unamortized premium of $1,131 and $1,415, respectively, due in 2017(1) | 19,361 | 19,862 | ||||||
Mortgage note payable, 5.689% interest rate, including unamortized premium of $286 and $416, respectively, due in 2016(1)(2) | 7,786 | 7,916 | ||||||
| | | | | | | | |
$ | 536,147 | $ | 472,778 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | ||||||||
We assumed these mortgages in connection with our acquisition 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 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. | ||||||||
-2 | ||||||||
This mortgage note was repaid, at par, in January 2014. | ||||||||
We have a $750,000 unsecured revolving credit facility that is available for general business purposes, including acquisitions. The maturity date of our revolving credit facility is March 11, 2016 and, subject to the payment of an extension fee and meeting certain other conditions, our revolving credit facility includes an option for us to extend the stated maturity date by one year to March 11, 2017. In addition, our revolving credit facility includes a feature under which maximum borrowings may be increased to $1,000,000 in certain circumstances. In February 2013, we partially exercised our option to increase the available borrowing amount under our revolving credit facility from $500,000 to $750,000. Borrowings under our revolving credit facility bear interest at LIBOR plus a premium. We also pay a facility fee 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 leverage or credit ratings. As of December 31, 2013, the interest rate premium on our revolving credit facility was 130 basis points and our facility fee was 30 basis points. As of December 31, 2013, the interest rate payable on borrowings under our revolving credit facility was 1.47% and the weighted average annual interest rate for borrowings under the revolving credit facility was 1.50% for the year ended December 31, 2013. The weighted average annual interest rate for borrowings under the revolving credit facility was 1.54% for the period from March 12, 2012, the date we entered into our revolving credit facility agreement, to December 31, 2012. We can borrow, repay and reborrow funds available under our revolving credit facility until maturity, and no principal repayment is due until maturity. As of December 31, 2013 and February 18, 2014, we had $159,000 and $170,000, respectively, outstanding under our revolving credit facility. | ||||||||
We also have a $350,000 unsecured term loan that matures on July 11, 2017 and is prepayable without penalty at any time. In addition, our term loan includes a feature under which maximum borrowings may be increased to up to $700,000 in certain circumstances. Our term loan bears interest at a rate of LIBOR plus a premium, which was 155 basis points as of December 31, 2013. The interest rate premium is subject to adjustment based upon changes to our leverage or credit ratings. As of December 31, 2013, the interest rate payable for the amount outstanding under our term loan was 1.72% and the weighted average interest rate for the amount outstanding under our term loan was 1.74% for the year ended December 31, 2013. The weighted average interest rate for the amount outstanding under our term loan was 1.78% for the period from July 12, 2012, the date we entered into our term loan agreement, to December 31, 2012. | ||||||||
Our revolving credit facility agreement and our term loan agreement provide for acceleration of payment of all amounts due thereunder upon the occurrence and continuation of certain events of default, including a change of control of us, which includes RMR ceasing to act as our business manager and property manager. Our revolving credit facility agreement and our term loan agreement also contain a number of financial and other covenants, including covenants that restrict our ability to incur indebtedness 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 of our revolving credit facility and term loan covenants at December 31, 2013. | ||||||||
At December 31, 2013, three of our properties with an aggregate net book value of $29,265 secured two mortgage notes we assumed in connection with our acquisitions of such properties. The aggregate principal amount outstanding under those two mortgage notes as of December 31, 2013, was $25,730. These mortgage notes are non-recourse, subject to certain limited exceptions, and do not contain any material financial covenants. | ||||||||
The required principal payments due during the next five years and thereafter under all our outstanding debt as of December 31, 2013 are as follows: | ||||||||
Year | Principal | |||||||
Payment | ||||||||
2014 | $ | 230 | ||||||
2015 | 245 | |||||||
2016 | 166,755 | |||||||
2017 | 367,500 | |||||||
2018 | — | |||||||
Therafter | — | |||||||
| | | | | ||||
$ | 534,730 | -1 | ||||||
| | | | | ||||
| | | | | ||||
-1 | ||||||||
Total debt outstanding as of December 31, 2013, including unamortized premiums of $1,417, was $536,147. | ||||||||
In January 2014, we repaid, at par, a $7,500 mortgage note which was secured by a building located in Chelmsford, MA. This mortgage was scheduled to mature in 2016. | ||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Fair Value of Financial Instruments | ' | |||||||
Fair Value of Financial Instruments | ' | |||||||
Note 7. Fair Value of Financial Instruments | ||||||||
Our financial instruments at December 31, 2013 include cash and cash equivalents, restricted cash, rents receivable, mortgage notes payable, our revolving credit facility, our term loan, amounts due to related persons, accounts payable and other accrued expenses. At December 31, 2013, the fair value of our financial instruments approximated their carrying values in our consolidated financial statements, except as follows: | ||||||||
Carrying | Estimated | |||||||
Amount | Fair Value | |||||||
Mortgage notes payable | $ | 27,147 | $ | 27,588 | ||||
We estimate the fair values of our mortgage notes payable by using discounted cash flow analyses and currently prevailing market rates for similar mortgage notes as of December 31, 2013. These inputs are categorized as level 3 inputs as defined in the fair value hierarchy under the accounting standards for Fair Value Measurements and Disclosures. Because our inputs are unobservable, our estimated fair value may differ materially from the actual fair value. | ||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Shareholders' Equity | ' | |||||||
Shareholders' Equity | ' | |||||||
Note 8. Shareholders' Equity | ||||||||
In June 2013, we amended our declaration of trust, increasing the number of our authorized shares of beneficial interest from 50,000,000 to 75,000,000. All of our authorized shares are currently classified as common shares, $.01 par value per share, or our common shares. | ||||||||
Share Awards | ||||||||
We have common shares available for issuance under the terms of our equity compensation plan adopted in 2012, or the 2012 Plan. As described in Note 9, we awarded common shares to our officers and certain employees of RMR in 2013. Also in 2013, we awarded each of our Trustees 2,000 common shares with an aggregate market value of approximately $276 (approximately $55 per Trustee) as part of their annual compensation, based upon the closing price of our common shares on the New York Stock Exchange, or 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 the value of awarded shares in general and administrative expenses ratably over the vesting period. | ||||||||
A summary of shares granted and vested under the terms of the 2012 Plan for the years ended December 31, 2013 and 2012 is as follows: | ||||||||
Number | Weighted | |||||||
of Shares | Average | |||||||
Grant Date | ||||||||
Fair Value | ||||||||
2012 Activity: | ||||||||
Granted | 32,592 | $ | 24.84 | |||||
Vested | (14,878 | ) | $ | 24.84 | ||||
| | | | | | | | |
Unvested shares at December 31, 2012 | 17,714 | $ | 24.84 | |||||
2013 Activity: | ||||||||
Granted | 47,200 | $ | 25.37 | |||||
Vested | (22,120 | ) | $ | 26.12 | ||||
Forfeited | (251 | ) | $ | 24.8 | ||||
| | | | | | | | |
Unvested shares at December 31, 2012 | 42,543 | $ | 24.79 | |||||
| | | | | | | | |
| | | | | | | | |
The 42,543 unvested shares as of December 31, 2013 are scheduled to vest as follows: 11,714 shares in 2014, 2015 and 2016 and 7,401 shares in 2017. As of December 31, 2013, the estimated future compensation expense for the unvested shares was approximately $1,138 based on the closing share price of our common shares on December 31, 2013 of $26.74. The weighted average period over which the compensation expense will be recorded is approximately 25 months. During the years ended December 31, 2013 and 2012, we recorded $645 and $508, respectively, of compensation expense related to our 2012 Plan. | ||||||||
At December 31, 2013, 2,920,459 common shares remain available for issuance under the 2012 Plan. | ||||||||
On February 7, 2014 we issued 2,936 shares to RMR as part of its compensation under our business management agreement. See Note 9 for further information regarding this agreement. | ||||||||
Share Issuances: | ||||||||
In July 2013, we sold 10,500,000 of our common shares in a public offering at a price of $28.25 per share, raising net proceeds of approximately $283,599. We used the net proceeds from this offering to partially repay amounts outstanding under our revolving credit facility and for general business purposes, including acquisitions. | ||||||||
Distributions: | ||||||||
In February 2013, we paid a distribution on our common shares of $0.42 per share, or approximately $16,499, to shareholders of record on January 22, 2013. | ||||||||
In May 2013, we paid a distribution on our common shares of $0.44 per share, or approximately $17,284, to shareholders of record on April 23, 2013. | ||||||||
In August 2013, we paid a distribution on our common shares of $0.44 per share, or approximately $21,909, to shareholders of record on July 24, 2013. | ||||||||
In November 2013, we paid a distribution on our common shares of $0.46 per share, or approximately $22,922, to shareholders of record on October 24, 2013. | ||||||||
In January 2014, we declared a regular quarterly distribution of $0.46 per common share, or approximately $22,922, to shareholders of record on January 13, 2014. We paid this distribution on February 19, 2014 using existing cash balances and borrowings under our revolving credit facility. | ||||||||
Cash distributions per share paid or payable by us to our common shareholders for the year ended December 31, 2013 and 2012 were $1.76 and $0.91, respectively. The characterization of our distributions paid or accrued in 2013 was 100.0% ordinary income. | ||||||||
Related_Person_Transactions
Related Person Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Person Transactions | ' |
Related Person Transactions | ' |
Note 9. 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 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, consider all of the relevant facts and circumstances and approve only those transactions that 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 and our declaration of trust, 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.sirreit.com. | |
RMR: We have no employees. 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 public companies to which RMR provides management services. Mr. Barry Portnoy serves as a managing director or managing trustee 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 officers of those companies. | |
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. The charter of our Compensation Committee requires 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 entered into an amended and restated business management agreement, effective with respect to services performed on and after January 1, 2014. Under the terms of this amended and restated business management agreement: | |
• | |
The annual amount of the base management fee to be paid to RMR by us for each applicable period will be equal to the lesser of: | |
• | |
the sum of (a) 0.5% of the average 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 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 | |
• | |
the sum of (a) 0.7% of the average closing price per share of our common shares on 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 historical cost of our real estate investments will include 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 will be paid monthly to RMR, ninety percent (90%) in cash and ten percent (10%) in our common shares, which shall be fully-vested when issued. The number of our common shares to be issued in payment of the base management fee for each month will be equal to 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 will be 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 will instead be paid in cash. | |
• | |
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 terms of the amended and restated 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 the period beginning on March 12, 2012, the date on which we entered into our business management agreement with RMR, through December 31, 2013, 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, 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 Normalized FFO Per Share, as defined in the business management agreement, for such fiscal year over the Normalized FFO Per Share for the preceding fiscal year. For purposes of calculating the incentive fee for 2013, Normalized FFO Per Share for 2012 will equal the annualized amount of our Normalized FFO for the period beginning with our initial public offering on March 12, 2012 through December 31, 2012, divided by the weighted average number of common shares outstanding during that period. We recognized business management fees of $9,503 and $4,719 for 2013 and the period beginning on March 12, 2012 through December 31, 2012, respectively. These amounts are included in general and administrative expenses in our consolidated financial statements. In March 2014, we expect to issue 32,865 of our common shares to RMR for the incentive fee for 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 $5,449 and $3,039 for 2013 and the period beginning on March 12, 2012 through December 31, 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 $203 and $162 for 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 who provide on-site property management services and our share of the staff employed by RMR who perform our internal audit function. Pursuant to our amended and restated business management agreement, RMR may from time to time negotiate on our behalf with certain third party vendors and suppliers for the procurement of services to us. As part of this arrangement, we may enter 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 amended and restated business management agreement with RMR and our property management agreement with RMR end on December 31, 2014 and automatically renew for successive one year terms unless we or RMR give notice of non-renewal before the end of an applicable term. We or RMR may terminate either agreement upon 60 days' prior written notice, and RMR may also terminate either agreement upon five business days' notice if we undergo a change of control, as defined in the applicable agreement. | |
Under our amended and restated 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. | |
Under the 2012 Plan, we grant restricted shares to certain employees of RMR, some of whom are our officers. We granted a total of 37,200 restricted shares with an aggregate value of $921 and 22,592 restricted shares with an aggregate value of $561 to such persons in 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 2012 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. | |
CWH: We were formerly a 100% owned subsidiary of CWH. CWH is our largest shareholder and, as of the date of this Annual Report on Form 10-K, CWH owned 22,000,000 of our common shares, or approximately 44.1% of our outstanding common shares. One of our Managing Trustees, Mr. Barry Portnoy, is a managing trustee of CWH. Our other Managing Trustee, Mr. Adam Portnoy, is a managing trustee and the President of CWH. In addition, Mr. John Popeo, our Treasurer and Chief Financial Officer, also serves as the treasurer and chief financial officer of CWH, and one of our Independent Trustees, Mr. William Lamkin, is an independent trustee of CWH. RMR provides management services to both us and CWH. | |
In March 2012, we completed our IPO of 9,200,000 of our common shares for net proceeds (after deducting underwriters' discounts and commissions and estimated expenses) of $180,814. We applied those net proceeds, along with proceeds of our initial borrowings under our then $500,000 revolving credit facility, to repay in full the CWH Note and to reimburse CWH for costs that CWH incurred in connection with our organization and preparation for our IPO. | |
To facilitate our IPO, we and CWH entered into a transaction agreement that governs our separation from and relationship with CWH. The transaction agreement provides that, among other things, (1) the current assets and liabilities of the Initial Properties, as of the time of closing of the IPO, were settled between us and CWH so that CWH will retain all pre-closing current assets and liabilities and we will assume all post-closing current assets and liabilities and (2) we will indemnify CWH with respect to any liability relating to any property transferred by CWH to us, including any liability which relates to periods prior to our formation, other than the pre-closing current assets and current liabilities that CWH retained with respect to the Initial Properties. | |
In March 2013, we entered into a registration agreement with CWH, pursuant to which we agreed to register for resale by CWH up to 22,000,000 of our common shares owned by CWH, or an Offering. We currently have an effective registration statement on Form S-3 that may provide for that possible resale by CWH. Under the registration agreement, CWH agreed to pay all expenses incurred by us relating to the registration and sale of the shares in an Offering. As of December 31, 2013, we paid $636 of expenses related to this agreement which was reimbursed by CWH. Our obligation to register our shares owned by CWH for resale in an Offering is subject to certain conditions and may be terminated in certain circumstances, in each case, as described in the registration agreement. CWH agreed to indemnify us and our officers, Trustees and controlling persons, and we agreed to indemnify CWH and its officers, trustees and controlling persons, against certain liabilities in connection with an Offering, including liabilities under the Securities Act. | |
AIC: In 2012, we purchased 20,000 shares of common stock of AIC for approximately $5,335. Concurrently with this purchase, we entered into an amended and restated shareholders agreement with AIC, RMR, CWH and five other companies to which RMR provides management services. We, RMR, CWH and these five other companies to which RMR provides management services each currently own 12.5% of AIC. 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. | |
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 $5,913 and $5,629 as of December 31, 2013 and 2012, respectively, which amounts are included in other assets on our consolidated balance sheets. We recognized income of $334 and $269 related to our investment in AIC for 2013 and the period beginning on May 21, 2012, the date on which we became a shareholder of AIC, through December 31, 2012, respectively. In June 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. We paid AIC a premium, including taxes and fees, of approximately $559 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. Our annual premium for this property insurance in 2012 was $324, before adjustments made for acquisitions or dispositions we made during that period. 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, CWH and four other companies to which RMR provides 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. We paid a premium of approximately $133 for this policy. | |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Note 10. Selected Quarterly Financial Data (Unaudited) | ||||||||||||||
The following is a summary of our unaudited quarterly results of operations for 2013 and 2012: | ||||||||||||||
2013 | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Total revenues | $ | 43,860 | $ | 45,946 | $ | 48,584 | $ | 49,933 | ||||||
Net income | $ | 22,632 | $ | 22,787 | $ | 23,594 | $ | 24,079 | ||||||
Net income per common share | $ | 0.58 | $ | 0.58 | $ | 0.47 | $ | 0.48 | ||||||
Common distributions declared | $ | 0.42 | $ | 0.44 | $ | 0.44 | $ | 0.46 | ||||||
2012 | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Total revenues | $ | 27,587 | $ | 27,920 | $ | 30,878 | $ | 36,405 | ||||||
Net income | $ | 17,655 | $ | 15,332 | $ | 15,719 | $ | 17,169 | ||||||
Net income per common share | $ | 1.34 | $ | 0.49 | $ | 0.5 | $ | 0.52 | ||||||
Common distributions declared | $ | — | $ | 0.09 | -1 | $ | 0.4 | $ | 0.42 | |||||
-1 | ||||||||||||||
Prorated distribution based on the number of days from March 12, 2012, which was the date we completed our IPO, to March 31, 2012. | ||||||||||||||
Pro_Forma_Information_Unaudite
Pro Forma Information (Unaudited) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Pro Forma Information (Unaudited) | ' | |||||||
Pro Forma Information (Unaudited) | ' | |||||||
Note 11. Pro Forma Information (Unaudited) | ||||||||
During the period from the Closing Date to December 31, 2012, we acquired 11 properties (16 buildings and leasable lands) for an aggregate purchase price of $438,013, including the assumption of $26,000 of mortgage debt and excluding closing costs. During the first quarter of 2012, CWH contributed the Initial Properties to us. In return, we issued to CWH: (i) 22,000,000 common shares (including 1,000 common shares initially issued to CWH in December 2011 in connection with our formation) and (ii) the CWH Note. Also during the first quarter of 2012, we issued 9,200,000 of our common shares in connection with our IPO (including 1,200,000 common shares sold pursuant to the full exercise of the underwriters' option to purchase additional shares). Simultaneous with the closing of our IPO, we entered into our revolving credit facility and used net proceeds from our IPO and borrowings under our revolving credit facility to repay in full the CWH Note. During the fourth quarter of 2012, we sold 8,050,000 of our common shares in a public offering (including 1,050,000 common shares sold pursuant to the full exercise of the underwriters' option to purchase additional shares) at a price of $24.00 per share. | ||||||||
During the year ended December 31, 2013, we acquired seven properties (11 buildings) for an aggregate purchase price of $384,820, excluding closing costs. During the third quarter of 2013, we sold 10,500,000 of our common shares in a public offering at a price of $28.25 per share. | ||||||||
The following table presents our pro forma results of operations for the year ended December 31, 2013 and 2012 as if these acquisitions and financing activities had occurred on January 1, 2012. 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 numerous factors, including future changes in our portfolio of investments, changes in interest rates, changes in our capital structure, changes in net property level operating expenses, changes in property level revenues, including rents expected to be received on our existing leases or leases we may enter into during and after 2014, and for other reasons. | ||||||||
Year Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Total revenues | $ | 202,414 | $ | 197,709 | ||||
Net income | $ | 99,723 | $ | 95,784 | ||||
Net income per share | $ | 2 | $ | 1.92 | ||||
During the year ended December 31, 2013, we recognized revenues of $72,435 and operating income of $59,019 arising from our 2012 and 2013 acquisitions. | ||||||||
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | ' | |||||||||||||
SCHEDULE II | ||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||
December 31, 2013 | ||||||||||||||
(dollars in thousands) | ||||||||||||||
Description | Balance at | Charged to | Deductions | Balance | ||||||||||
Beginning | Costs and | at End | ||||||||||||
of Period | Expenses | of Period | ||||||||||||
Year ended December 31, 2011: | ||||||||||||||
Allowance for doubtful accounts | $ | 4,221 | $ | 579 | $ | (733 | ) | $ | 4,067 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year ended December 31, 2012: | ||||||||||||||
Allowance for doubtful accounts | $ | 4,067 | $ | (23 | ) | $ | (3,400 | ) | $ | 644 | ||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Year ended December 31, 2013: | ||||||||||||||
Allowance for doubtful accounts | $ | 644 | $ | 352 | $ | (60 | ) | $ | 936 | |||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
SCHEDULE_III_REAL_ESTATE_AND_A
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ||||||||||||||||||||||||||||||||||||
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ||||||||||||||||||||||||||||||||||||
SELECT INCOME REIT | |||||||||||||||||||||||||||||||||||||
SCHEDULE III | |||||||||||||||||||||||||||||||||||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | |||||||||||||||||||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(dollars in thousands) | |||||||||||||||||||||||||||||||||||||
Initial Cost to | Gross Amount Carried at | ||||||||||||||||||||||||||||||||||||
Company | Close of Period(4) | ||||||||||||||||||||||||||||||||||||
Property | Location | State | Property Type | Encumbrances(1) | Land | Buildings and | Costs Capitalized | Land | Buildings and | Total(2) | Accumulated | Date Acquired | Original | ||||||||||||||||||||||||
Equipment | Subsequent to | Equipment | Depreciation(3) | Construction | |||||||||||||||||||||||||||||||||
Acquisition | Date | ||||||||||||||||||||||||||||||||||||
1 | Inverness Center | Birmingham | AL | Mainland Properties | $ | — | $ | 4,209 | $ | 32,096 | $ | 326 | $ | 4,209 | $ | 32,422 | $ | 36,631 | $ | 2,490 | 12/9/10 | 1984;1985 | |||||||||||||||
2 | Cinram Distribution Center | Huntsville | AL | Mainland Properties | — | 5,628 | 67,373 | — | 5,628 | 67,373 | 73,001 | 2,246 | 8/31/12 | 1979 | |||||||||||||||||||||||
3 | Regents Center | Tempe | AZ | Mainland Properties | — | 1,125 | 10,122 | 1,999 | 1,125 | 12,121 | 13,246 | 4,691 | 6/30/99 | 1988 | |||||||||||||||||||||||
4 | Campbell Place | Carlsbad | CA | Mainland Properties | 19,360 | 3,381 | 17,918 | — | 3,381 | 17,918 | 21,299 | 560 | 9/21/12 | 2007 | |||||||||||||||||||||||
5 | Folsom Corporate Center | Folsom | CA | Mainland Properties | — | 3,450 | 25,504 | — | 3,450 | 25,504 | 28,954 | 1,913 | 12/17/10 | 2008 | |||||||||||||||||||||||
6 | Bayside Technology Park | Fremont | CA | Mainland Properties | — | 5,200 | 4,860 | 521 | 5,200 | 5,381 | 10,581 | 585 | 3/19/09 | 1990 | |||||||||||||||||||||||
7 | North First Street | San Jose | CA | Mainland Properties | — | 6,160 | 7,961 | — | 6,160 | 7,961 | 14,121 | — | 12/23/13 | 1984 | |||||||||||||||||||||||
8 | Rio Robles Drive | San Jose | CA | Mainland Properties | — | 16,608 | 28,316 | — | 16,608 | 28,316 | 44,924 | — | 12/23/13 | 1984 | |||||||||||||||||||||||
9 | 350 West Java Drive | Sunnyvale | CA | Mainland Properties | — | 11,552 | 12,461 | — | 11,552 | 12,461 | 24,013 | 363 | 11/15/12 | 1984 | |||||||||||||||||||||||
10 | 333 Inverness Drive South | Englewood | CO | Mainland Properties | — | 3,230 | 11,801 | 415 | 3,230 | 12,216 | 15,446 | 468 | 6/15/12 | 1998 | |||||||||||||||||||||||
11 | 2 Tower Drive | Wallingford | CT | Mainland Properties | — | 1,471 | 2,165 | 8 | 1,471 | 2,173 | 3,644 | 397 | 10/24/06 | 1978 | |||||||||||||||||||||||
12 | 1 Targeting Center | Windsor | CT | Mainland Properties | — | 1,850 | 7,226 | — | 1,850 | 7,226 | 9,076 | 256 | 7/20/12 | 1980 | |||||||||||||||||||||||
13 | 235 Great Pond Road | Windsor | CT | Mainland Properties | — | 2,400 | 9,469 | — | 2,400 | 9,469 | 11,869 | 335 | 7/20/12 | 2004 | |||||||||||||||||||||||
14 | 2100 NW 82nd Ave | Miami | FL | Mainland Properties | — | 144 | 1,297 | 376 | 144 | 1,673 | 1,817 | 542 | 3/19/98 | 1987 | |||||||||||||||||||||||
15 | King Street Ground Lease | Honolulu | HI | Hawaii Properties | — | 1,342 | — | — | 1,342 | — | 1,342 | — | 12/5/03 | — | |||||||||||||||||||||||
16 | Mapunapuna Ground Leases | Honolulu | HI | Hawaii Properties | — | 333,883 | 9,404 | 1,141 | 334,533 | 9,895 | 344,428 | 2,422 | 12/5/2003; | — | |||||||||||||||||||||||
11/21/12 | |||||||||||||||||||||||||||||||||||||
17 | Safeway Shopping Center | Honolulu | HI | Hawaii Properties | — | 11,437 | — | 161 | 11,437 | 161 | 11,598 | 49 | 12/5/03 | — | |||||||||||||||||||||||
18 | Salt Lake Shopping Center | Honolulu | HI | Hawaii Properties | — | 9,660 | — | — | 9,660 | — | 9,660 | — | 12/5/03 | — | |||||||||||||||||||||||
19 | Sand Island Ground Leases | Honolulu | HI | Hawaii Properties | — | 94,033 | — | 170 | 94,033 | 170 | 94,203 | 10 | 12/5/03 | — | |||||||||||||||||||||||
20 | Sand Island Buildings | Honolulu | HI | Hawaii Properties | — | 13,845 | 11,307 | 11,220 | 13,845 | 22,527 | 36,372 | 4,480 | 12/5/2003; | 1953;1959;1966; | |||||||||||||||||||||||
11/23/04 | 1970;1972;2004 | ||||||||||||||||||||||||||||||||||||
21 | Waiwai Ground Leases | Honolulu | HI | Hawaii Properties | — | 2,112 | 455 | — | 2,112 | 455 | 2,567 | 114 | 12/5/03 | — | |||||||||||||||||||||||
22 | Campbell Buildings | Kapolei | HI | Hawaii Properties | — | 4,074 | 7,736 | 11,908 | 4,074 | 19,644 | 23,718 | 3,264 | 6/15/05 | 1964;1980;1981; | |||||||||||||||||||||||
1990;1991 | |||||||||||||||||||||||||||||||||||||
23 | Campbell Easements | Kapolei | HI | Hawaii Properties | — | 10,496 | — | — | 10,496 | — | 10,496 | — | 6/15/05 | — | |||||||||||||||||||||||
24 | Campbell Ground Leases | Kapolei | HI | Hawaii Properties | — | 101,905 | — | 989 | 101,905 | 989 | 102,894 | 109 | 6/15/05 | — | |||||||||||||||||||||||
25 | Waipahu Ground Lease | Waipahu | HI | Hawaii Properties | — | 717 | — | — | 717 | — | 717 | — | 12/5/03 | — | |||||||||||||||||||||||
26 | 951 Trails Road | Eldridge | IA | Mainland Properties | — | 470 | 7,480 | 376 | 470 | 7,856 | 8,326 | 1,305 | 4/2/07 | 1994 | |||||||||||||||||||||||
Initial Cost to | Gross Amount Carried at | ||||||||||||||||||||||||||||||||||||
Company | Close of Period(4) | ||||||||||||||||||||||||||||||||||||
Property | Location | State | Property Type | Encumbrances(1) | Land | Buildings and | Costs Capitalized | Land | Buildings and | Total(2) | Accumulated | Date Acquired | Original | ||||||||||||||||||||||||
Equipment | Subsequent to | Equipment | Depreciation(3) | Construction | |||||||||||||||||||||||||||||||||
Acquisition | Date | ||||||||||||||||||||||||||||||||||||
27 | 2300 N 33rd Ave | Newton | IA | Mainland Properties | — | 500 | 13,236 | 163 | 500 | 13,399 | 13,899 | 1,800 | 9/29/08 | 2008 | |||||||||||||||||||||||
28 | 440 North Fairway Drive | Vernon Hills | IL | Mainland Properties | — | 4,095 | 9,882 | — | 4,095 | 9,882 | 13,977 | 62 | 10/15/13 | 1992 | |||||||||||||||||||||||
29 | Capitol Tower | Topeka | KS | Mainland Properties | — | 1,300 | 15,918 | 103 | 1,300 | 16,021 | 17,321 | 564 | 7/30/12 | 1983 | |||||||||||||||||||||||
30 | The Atrium at Circleport II | Erlanger | KY | Mainland Properties | — | 2,020 | 9,545 | 1,035 | 2,020 | 10,580 | 12,600 | 2,556 | 6/30/03 | — | |||||||||||||||||||||||
31 | 300 and 330 Billerica Road | Chelmsford | MA | Mainland Properties | 7,787 | 3,419 | 14,049 | 313 | 3,419 | 14,362 | 17,781 | 747 | 1/18/2011; | 1984 | |||||||||||||||||||||||
9/27/12 | |||||||||||||||||||||||||||||||||||||
32 | 111 Powdermill Road | Maynard | MA | Mainland Properties | — | 3,603 | 26,180 | 100 | 3,603 | 26,280 | 29,883 | 4,456 | 3/30/07 | 1990 | |||||||||||||||||||||||
33 | 7001 Columbia Gateway Drive | Columbia | MD | Mainland Properties | — | 3,700 | 24,592 | — | 3,700 | 24,592 | 28,292 | 615 | 12/21/12 | 2008 | |||||||||||||||||||||||
34 | 3550 Green Court | Ann Arbor | MI | Mainland Properties | — | 2,877 | 9,081 | 1,004 | 2,877 | 10,085 | 12,962 | 228 | 12/21/12 | 1998 | |||||||||||||||||||||||
35 | 8687 Carling Road | Liverpool | NY | Mainland Properties | — | 375 | 3,265 | 1,924 | 375 | 5,189 | 5,564 | 965 | 1/6/06 | 1997 | |||||||||||||||||||||||
36 | 1212 Pittsford—Victor Road | Pittsford | NY | Mainland Properties | — | 528 | 3,755 | 465 | 528 | 4,220 | 4,748 | 1,213 | 11/30/04 | 1965 | |||||||||||||||||||||||
37 | 500 Canal View Boulevard | Rochester | NY | Mainland Properties | — | 1,462 | 12,482 | 1,201 | 1,462 | 13,683 | 15,145 | 3,148 | 1/6/06 | 1996 | |||||||||||||||||||||||
38 | 32150 Just Imagine Drive | Avon | OH | Mainland Properties | — | 2,200 | 23,280 | — | 2,200 | 23,280 | 25,480 | 2,668 | 5/29/09 | 1996 | |||||||||||||||||||||||
39 | 501 Ridge Avenue | Hanover | PA | Mainland Properties | — | 4,800 | 22,200 | 30 | 4,800 | 22,230 | 27,030 | 2,940 | 9/24/08 | 1948 | |||||||||||||||||||||||
40 | 16001 North Dallas Parkway | Addison | TX | Mainland Properties | — | 10,107 | 95,124 | 43 | 10,107 | 95,167 | 105,274 | 2,180 | 1/16/13 | 1987 | |||||||||||||||||||||||
41 | Research Park | Austin | TX | Mainland Properties | — | 1,441 | 13,007 | 660 | 1,441 | 13,667 | 15,108 | 4,925 | 6/16/99 | 1999 | |||||||||||||||||||||||
42 | 4421 W. John Carp. Freeway | Irving | TX | Mainland Properties | — | 542 | 4,879 | 553 | 542 | 5,432 | 5,974 | 2,126 | 3/19/98 | 1995 | |||||||||||||||||||||||
43 | 3600 Wiseman Boulevard | San Antonio | TX | Mainland Properties | — | 3,197 | 12,175 | — | 3,197 | 12,175 | 15,372 | 228 | 3/19/13 | 2004 | |||||||||||||||||||||||
44 | 1800 Novell Place | Provo | UT | Mainland Properties | — | 6,700 | 78,940 | — | 6,700 | 78,940 | 85,640 | 3,125 | 6/1/12 | 2000 | |||||||||||||||||||||||
45 | 4885-4931 North 300 West | Provo | UT | Mainland Properties | — | 3,400 | 25,938 | — | 3,400 | 25,938 | 29,338 | 540 | 2/28/13 | 2009 | |||||||||||||||||||||||
46 | 501 South 5th Street | Richmond | VA | Mainland Properties | — | 13,849 | 109,823 | — | 13,849 | 109,823 | 123,672 | 1,373 | 7/2/13 | 2009 | |||||||||||||||||||||||
47 | Orbital Sciences Campus | Sterling | VA | Mainland Properties | — | 9,875 | 62,238 | — | 9,875 | 62,238 | 72,113 | 1,686 | 11/29/12 | 2000;2001 | |||||||||||||||||||||||
48 | 181 Battaile Drive | Winchester | VA | Mainland Properties | — | 1,487 | 12,854 | — | 1,487 | 12,854 | 14,341 | 2,479 | 4/20/06 | 1987 | |||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Totals | $ | 27,147 | $ | 731,859 | $ | 877,394 | $ | 37,204 | $ | 732,509 | $ | 913,948 | $ | 1,646,457 | $ | 67,223 | |||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||||||||||||||||||||||
Includes the unamortized balance of the fair value adjustments. | |||||||||||||||||||||||||||||||||||||
-2 | |||||||||||||||||||||||||||||||||||||
Excludes value of real estate intangibles. | |||||||||||||||||||||||||||||||||||||
-3 | |||||||||||||||||||||||||||||||||||||
Depreciation on buildings and improvements is provided for periods ranging up to 40 years and on equipment up to 12 years. | |||||||||||||||||||||||||||||||||||||
-4 | |||||||||||||||||||||||||||||||||||||
The total aggregate cost for U.S. federal income tax purposes is approximately $ 1,725,835. | |||||||||||||||||||||||||||||||||||||
Analysis of the carrying amount of real estate properties and accumulated depreciation: | |||||||||||||||||||||||||||||||||||||
Real Estate | Accumulated | ||||||||||||||||||||||||||||||||||||
Properties | Depreciation | ||||||||||||||||||||||||||||||||||||
Balance at December 31, 2010 | $ | 897,603 | $ | (28,765 | ) | ||||||||||||||||||||||||||||||||
Additions | 10,118 | (7,860 | ) | ||||||||||||||||||||||||||||||||||
Disposals | (385 | ) | 385 | ||||||||||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||||||||||
Balance at December 31, 2011 | 907,336 | (36,240 | ) | ||||||||||||||||||||||||||||||||||
Additions | 388,478 | (10,493 | ) | ||||||||||||||||||||||||||||||||||
Disposals | (36 | ) | 36 | ||||||||||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 1,295,778 | (46,697 | ) | ||||||||||||||||||||||||||||||||||
Additions | 350,684 | (20,531 | ) | ||||||||||||||||||||||||||||||||||
Disposals | (5 | ) | 5 | ||||||||||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||||||||||
Balance at December 31, 2013 | $ | 1,646,457 | $ | (67,223 | ) | ||||||||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||||||||||
| | | | | | | | ||||||||||||||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Basis of Presentation | ' | |||||||
Basis of Presentation. Prior to our IPO, CWH owned us, and we have presented certain historical transactions at CWH's historical basis. Historically, substantially all of the rental income received by CWH from the tenants of our Initial Properties were deposited in and commingled with CWH's general funds. Certain capital investments and other cash requirements of our Initial Properties were paid by CWH and were charged directly to our Initial Properties. General and administrative costs of CWH were allocated to our Initial Properties based on the historical costs of the real estate investments for our Initial Properties as a percentage of CWH's historical cost of all of CWH's real estate investments until the completion of our IPO on March 12, 2012, or the Closing Date. In our opinion, and in accordance with applicable accounting guidance, this method for allocating general and administrative expenses is reasonable. However, actual expenses may have been different from allocated expenses if the Initial Properties had operated as a separate entity, and those differences might be material. Since the Closing Date, we have recorded general and administrative expenses at our direct cost. The preparation of financial statements in conformity with generally accepted accounting principles, or GAAP, requires us to make estimates and assumptions that affect reported amounts. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for doubtful accounts, purchase price allocations and useful lives of fixed assets. | ||||||||
These consolidated financial statements include our accounts and the accounts of our subsidiaries, all of which are 100% owned directly or indirectly by us. All intercompany transactions and balances with or among our consolidated subsidiaries have been eliminated. | ||||||||
Real Estate Properties | ' | |||||||
Real Estate Properties. As required by GAAP, we have generally adopted the accounting treatment and policies for our properties and business which were previously employed by CWH. We recorded our Initial Properties at cost to CWH and record our other properties at our cost and provide depreciation on real estate investments on a straight line basis over estimated useful lives generally ranging from 7 to 40 years. We and CWH estimated the purchase price allocations and the useful lives of our properties. In some circumstances, we and CWH engaged 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 and CWH allocated the purchase prices of our properties to land, building and improvements based on determinations of the relative fair values of these assets assuming the properties are vacant. We and CWH determined the fair value of each property using methods similar to those used by independent appraisers. For properties qualifying as acquired business under Accounting Standards Codification 805 Business Combinations, we and CWH allocated 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 or CWH) 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 and CWH allocated a portion of the purchase price to acquired in place leases and tenant relationships in an amount, if any, equal to the excess of (i) the purchase price paid for each property, after adjusting existing acquired in place leases to market rental rates, over (ii) the estimated fair value of the property, as if vacant. We and CWH allocated 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 considered 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 or CWH. 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 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 changes to rental income of ($1,011), ($587) and ($354) during the years ended December 31, 2013, 2012 and 2011, 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, or Lease Origination Value, over the terms of the associated leases. Such amortization, which is included in depreciation and amortization expense, totaled $9,758, $3,781 and $2,788 during the years ended December 31, 2013, 2012 and 2011, respectively. If a lease is terminated prior to its stated expiration, we write off the unamortized amounts relating to that lease. | ||||||||
At December 31, 2013 and 2012, our acquired real estate leases and assumed real estate lease obligations were as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Acquired real estate leases | ||||||||
Capitalized above market lease values | $ | 44,851 | $ | 45,192 | ||||
Less: accumulated amortization | (14,556 | ) | (12,171 | ) | ||||
| | | | | | | | |
Capitalized above market lease values, net | 30,295 | 33,021 | ||||||
Lease Origination Value | 117,491 | 71,879 | ||||||
Less: accumulated amortization | (18,360 | ) | (9,652 | ) | ||||
| | | | | | | | |
Lease Origination Value, net | 99,131 | 62,227 | ||||||
| | | | | | | | |
Acquired real estate leases, net | $ | 129,426 | $ | 95,248 | ||||
| | | | | | | | |
| | | | | | | | |
Assumed real estate lease obligations | ||||||||
Capitalized below market lease values | $ | 37,776 | $ | 29,547 | ||||
Less: accumulated amortization | (10,810 | ) | (9,113 | ) | ||||
| | | | | | | | |
Assumed real estate lease obligations, net | $ | 26,966 | $ | 20,434 | ||||
| | | | | | | | |
| | | | | | | | |
Future amortization of net intangible acquired lease assets and liabilities to be recognized over the current terms of the associated leases as of December 31, 2013 are estimated to be $12,621 in 2014, $12,639 in 2015, $12,187 in 2016, $10,948 in 2017, $11,288 in 2018 and $42,777 thereafter. | ||||||||
We recognize impairment losses on real estate investments when indicators of impairment are present and the estimated undiscounted cash flow from our real estate investments is less than the carrying amount of such real estate investments. Impairment indicators may include declining tenant occupancy, lack of progress releasing vacant space, tenant bankruptcies, low long term prospects for improvement in property performance, weak or declining tenant profitability, cash flow or liquidity, our decision to dispose of an asset before the end of its estimated useful life and legislative, market or industry changes that could permanently reduce the value of a property. We review our properties for impairment quarterly, or whenever events or changes in circumstances indicate that carrying amounts may not be recoverable. If indicators of impairment are present, we evaluate the carrying value of the related property by comparing it to the expected future undiscounted cash flows expected to be generated from that property. If the sum of these expected future undiscounted cash flows is less than the carrying value, we reduce the net carrying value of the property to its estimated fair value. The determination of undiscounted cash flow includes consideration of many factors including income to be earned from the investment, holding costs (exclusive of interest), estimated selling prices, and prevailing economic and market conditions. Based on these procedures performed, no impairments exist on any of our properties as of December 31, 2013 and 2012. | ||||||||
Certain of our real estate assets contain hazardous substances, including asbestos. We believe the asbestos at our properties is contained in accordance with current environmental regulations and we have no current plans to remove it. If these properties were demolished today, certain environmental regulations specify the manner in which the asbestos must be removed and we could incur substantial costs complying with such regulations. Certain of our industrial lands in Hawaii may require environmental remediation, especially if the use of those lands is changed; however, we do not have any present plans to change the use of those land parcels or to undertake this environmental cleanup. In general, we do not have any insurance designated to limit any losses that we may incur as a result of known or unknown environmental conditions which are not caused by an insured event, such as, for example, fire or flood, although some of our tenants may maintain such insurance. However, as of December 31, 2013 and 2012, accrued environmental remediation costs totaling $8,150 and $8,644, respectively, were included in accounts payable and accrued expenses in our consolidated balance sheets. Because of the indeterminable timing of the remediation, these amounts have not been discounted to present value. These accrued expenses relate to maintenance of our properties for current uses. The reduction in the accrued balance during 2013 primarily reflects remediation costs paid during 2013. We do not believe that there are environmental conditions at any of our properties that will have a material adverse effect on us. However, no assurances can be given that such conditions are not present in our properties or that other costs we incur to remediate contamination will not have a material adverse effect on our business or financial condition. Charges for environmental remediation costs are included in other operating expenses in the consolidated statements of income and comprehensive income. | ||||||||
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 capitalized brokerage, legal and other fees associated with the successful negotiation of leases, which are amortized to depreciation and amortization expense on a straight line basis over the terms of the respective leases. Deferred leasing costs totaled $7,858 and $6,438 at December 31, 2013 and 2012, respectively, and accumulated amortization of deferred leasing costs totaled $2,259 and $1,622 at December 31, 2013 and 2012, respectively. Future amortization of deferred leasing costs to be recognized during the current terms of the existing leases as of December 31, 2013, are estimated to be $847 in 2014, $777 in 2015, $627 in 2016, $575 in 2017, $469 in 2018 and $2,304 thereafter. | ||||||||
Deferred Financing Fees | ' | |||||||
Deferred Financing Fees. Deferred financing fees include capitalized issuance or assumption costs related to borrowings, which are amortized to interest expense over the terms of the respective loans. Deferred financing fees totaled $7,761 and $6,567 at December 31, 2013 and 2012, respectively, and accumulated amortization of deferred financing fees totaled $2,927 and $1,050, at December 31, 2013 and 2012, respectively. Future amortization of deferred financing fees to be recognized with respect to our loans as of December 31, 2013, are estimated to be $1,914 in 2014, $1,914 in 2015, $751 in 2016, $256 in 2017 and $0 thereafter. | ||||||||
Other Assets | ' | |||||||
Other Assets. Other assets consist primarily of deposits on potential acquisitions, our investment in AIC (as described in Note 9) and prepaid real estate taxes and other prepaid expenses. We account for our investment in Affiliates Insurance Company, or AIC, using the equity method of accounting. Significant influence is present through common representation on the boards of trustees or directors of us and AIC. Our Managing Trustees are also owners of Reit Management & Research LLC, or RMR, which is the manager of us and AIC, and each of our Trustees is a director of AIC. See Note 9 for a further discussion of our investment in AIC. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition. Rental income from operating leases is recognized on a straight line basis over the lives of lease agreements. We defer the recognition of contingent rental income, such as percentage rents, until the specific targets that trigger the contingent rental income are achieved. Contingent rental income recognized totaled $1,330, $1,552 and $1,102 for the years ended December 31, 2013, 2012 and 2011, respectively. Tenant reimbursements and other income include property level operating expenses and capital expenditures reimbursed by our tenants as well as other incidental revenues. Certain tenants are obligated to pay directly their obligations under their leases for insurance, real estate taxes and certain other expenses and these costs, which have been assumed by the tenants under the terms of their respective leases, are not reflected in our consolidated financial statements. To the extent any tenant responsible for these costs under their respective lease defaults on its lease or it is deemed probable that the tenant will fail to pay for such costs, we would record a liability for such obligation. | ||||||||
Allowance for Doubtful Accounts | ' | |||||||
Allowance for Doubtful Accounts. We maintain an allowance for doubtful accounts for estimated losses resulting from the inability or unwillingness of certain tenants to make payments required under their leases. The computation of the allowance is based on the tenants' payment histories and current credit profiles, as well as other considerations. | ||||||||
Income Taxes | ' | |||||||
Income Taxes. We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and, accordingly, we generally will not be subject to federal income taxes provided we distribute our taxable income and meet certain other requirements to qualify as a REIT. We are, however, subject to certain state and local taxes. | ||||||||
Cumulative Other Comprehensive Income | ' | |||||||
Cumulative Other Comprehensive Income. Cumulative other comprehensive income consists of the unrealized gains and losses related to our investment in AIC, as described in Note 9. | ||||||||
Reclassifications | ' | |||||||
Reclassifications. Certain reclassifications have been made to the prior years' financial statements to conform to the current year's presentation. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates. Preparation of these financial statements in conformity with GAAP requires us to make estimates and assumptions that may affect the amounts reported in these consolidated financial statements and related notes. The actual results could differ from these estimates. | ||||||||
Net Income Per Share | ' | |||||||
Net Income Per Share. We compute net income per common share using the weighted average number of common shares outstanding. We had no common share equivalents during the periods presented. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary of Significant Accounting Policies | ' | |||||||
Schedule of acquired real estate leases and assumed real estate lease obligations | ' | |||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Acquired real estate leases | ||||||||
Capitalized above market lease values | $ | 44,851 | $ | 45,192 | ||||
Less: accumulated amortization | (14,556 | ) | (12,171 | ) | ||||
| | | | | | | | |
Capitalized above market lease values, net | 30,295 | 33,021 | ||||||
Lease Origination Value | 117,491 | 71,879 | ||||||
Less: accumulated amortization | (18,360 | ) | (9,652 | ) | ||||
| | | | | | | | |
Lease Origination Value, net | 99,131 | 62,227 | ||||||
| | | | | | | | |
Acquired real estate leases, net | $ | 129,426 | $ | 95,248 | ||||
| | | | | | | | |
| | | | | | | | |
Assumed real estate lease obligations | ||||||||
Capitalized below market lease values | $ | 37,776 | $ | 29,547 | ||||
Less: accumulated amortization | (10,810 | ) | (9,113 | ) | ||||
| | | | | | | | |
Assumed real estate lease obligations, net | $ | 26,966 | $ | 20,434 | ||||
| | | | | | | | |
| | | | | | | | |
Real_Estate_Properties_Tables
Real Estate Properties (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Real Estate Properties | ' | |||||||||||||||||||||||||||
Schedule of purchase prices of acquisitions allocated based on the estimated fair values of the acquired assets and assumed liabilities | ' | |||||||||||||||||||||||||||
Date | Location | Properties\ | Square | Purchase | Land | Building and | Acquired | Assumed | Other | |||||||||||||||||||
Buildings | Feet | Price(1) | Improvements | Real Estate | Real Estate | Assumed | ||||||||||||||||||||||
Leases | Lease | Liabilities | ||||||||||||||||||||||||||
Obligations | ||||||||||||||||||||||||||||
Jan-13 | Addison, TX(2) | 2-Jan | 553,799 | $ | 105,000 | $ | 10,107 | $ | 94,893 | $ | — | $ | — | $ | — | |||||||||||||
Feb-13 | Provo, UT | 2-Jan | 125,225 | 34,720 | 3,400 | 25,938 | 5,382 | — | — | |||||||||||||||||||
Mar-13 | San Antonio, TX | 1-Jan | 99,986 | 18,600 | 3,197 | 12,175 | 3,507 | (279 | ) | — | ||||||||||||||||||
Jul-13 | Richmond, VA | 1-Jan | 310,950 | 143,600 | 13,849 | 109,823 | 19,928 | — | — | |||||||||||||||||||
Oct-13 | Vernon Hills, IL(3) | 1-Jan | 99,579 | 18,000 | 4,095 | 9,882 | 4,023 | — | (1,095 | ) | ||||||||||||||||||
Dec-13 | San Jose, CA(3) | 4-Feb | 250,731 | 64,900 | 22,768 | 36,278 | 13,964 | (8,110 | ) | — | ||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
11-Jul | 1,440,270 | $ | 384,820 | $ | 57,416 | $ | 288,989 | $ | 46,804 | $ | (8,389 | ) | $ | (1,095 | ) | |||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | ||||||||||||||||||||||||||||
Purchase price excludes acquisition related costs. | ||||||||||||||||||||||||||||
-2 | ||||||||||||||||||||||||||||
Property was acquired and simultaneously leased back to the seller in a sale/leaseback transaction. We capitalized acquisition costs of $232 related to this transaction. | ||||||||||||||||||||||||||||
-3 | ||||||||||||||||||||||||||||
The allocation of purchase price is based on preliminary estimates and may change upon the completion of (i) third party appraisals and (ii) our analysis of acquired in place leases and building valuations. | ||||||||||||||||||||||||||||
Schedule of future minimum lease payments scheduled to be received during the current terms of the existing leases | ' | |||||||||||||||||||||||||||
Year | Minimum | |||||||||||||||||||||||||||
Lease | ||||||||||||||||||||||||||||
Payment | ||||||||||||||||||||||||||||
2014 | $ | 159,233 | ||||||||||||||||||||||||||
2015 | 161,793 | |||||||||||||||||||||||||||
2016 | 156,677 | |||||||||||||||||||||||||||
2017 | 154,696 | |||||||||||||||||||||||||||
2018 | 151,409 | |||||||||||||||||||||||||||
Thereafter | 1,134,602 | |||||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||
$ | 1,918,410 | |||||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||
| | | | | ||||||||||||||||||||||||
Indebtedness_Tables
Indebtedness (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Indebtedness | ' | |||||||
Schedule of outstanding indebtedness | ' | |||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Revolving credit facility, due in 2016 | $ | 159,000 | $ | 95,000 | ||||
Term loan, due in 2017 | 350,000 | 350,000 | ||||||
Mortgage note payable, 5.950% interest rate, including unamortized premium of $1,131 and $1,415, respectively, due in 2017(1) | 19,361 | 19,862 | ||||||
Mortgage note payable, 5.689% interest rate, including unamortized premium of $286 and $416, respectively, due in 2016(1)(2) | 7,786 | 7,916 | ||||||
| | | | | | | | |
$ | 536,147 | $ | 472,778 | |||||
| | | | | | | | |
| | | | | | | | |
-1 | ||||||||
We assumed these mortgages in connection with our acquisition 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 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. | ||||||||
-2 | ||||||||
This mortgage note was repaid, at par, in January 2014. | ||||||||
Schedule of the principal payments due under the outstanding debt | ' | |||||||
Year | Principal | |||||||
Payment | ||||||||
2014 | $ | 230 | ||||||
2015 | 245 | |||||||
2016 | 166,755 | |||||||
2017 | 367,500 | |||||||
2018 | — | |||||||
Therafter | — | |||||||
| | | | | ||||
$ | 534,730 | -1 | ||||||
| | | | | ||||
| | | | | ||||
-1 | ||||||||
Total debt outstanding as of December 31, 2013, including unamortized premiums of $1,417, was $536,147. | ||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Fair Value of Financial Instruments | ' | |||||||
Schedule of carrying value and the estimated fair market value of mortgage notes payable | ' | |||||||
At December 31, 2013, the fair value of our financial instruments approximated their carrying values in our consolidated financial statements, except as follows: | ||||||||
Carrying | Estimated | |||||||
Amount | Fair Value | |||||||
Mortgage notes payable | $ | 27,147 | $ | 27,588 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Shareholders' Equity | ' | |||||||
Summary of shares granted and vested under the terms of the 2012 Plan | ' | |||||||
Number | Weighted | |||||||
of Shares | Average | |||||||
Grant Date | ||||||||
Fair Value | ||||||||
2012 Activity: | ||||||||
Granted | 32,592 | $ | 24.84 | |||||
Vested | (14,878 | ) | $ | 24.84 | ||||
| | | | | | | | |
Unvested shares at December 31, 2012 | 17,714 | $ | 24.84 | |||||
2013 Activity: | ||||||||
Granted | 47,200 | $ | 25.37 | |||||
Vested | (22,120 | ) | $ | 26.12 | ||||
Forfeited | (251 | ) | $ | 24.8 | ||||
| | | | | | | | |
Unvested shares at December 31, 2012 | 42,543 | $ | 24.79 | |||||
| | | | | | | | |
| | | | | | | | |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | |||||||||||||
Summary of unaudited quarterly results of operations | ' | |||||||||||||
2013 | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Total revenues | $ | 43,860 | $ | 45,946 | $ | 48,584 | $ | 49,933 | ||||||
Net income | $ | 22,632 | $ | 22,787 | $ | 23,594 | $ | 24,079 | ||||||
Net income per common share | $ | 0.58 | $ | 0.58 | $ | 0.47 | $ | 0.48 | ||||||
Common distributions declared | $ | 0.42 | $ | 0.44 | $ | 0.44 | $ | 0.46 | ||||||
2012 | ||||||||||||||
First | Second | Third | Fourth | |||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||
Total revenues | $ | 27,587 | $ | 27,920 | $ | 30,878 | $ | 36,405 | ||||||
Net income | $ | 17,655 | $ | 15,332 | $ | 15,719 | $ | 17,169 | ||||||
Net income per common share | $ | 1.34 | $ | 0.49 | $ | 0.5 | $ | 0.52 | ||||||
Common distributions declared | $ | — | $ | 0.09 | -1 | $ | 0.4 | $ | 0.42 | |||||
-1 | ||||||||||||||
Prorated distribution based on the number of days from March 12, 2012, which was the date we completed our IPO, to March 31, 2012. | ||||||||||||||
Pro_Forma_Information_Unaudite1
Pro Forma Information (Unaudited) (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Pro Forma Information (Unaudited) | ' | |||||||
Schedule of pro forma results of operations | ' | |||||||
Year Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Total revenues | $ | 202,414 | $ | 197,709 | ||||
Net income | $ | 99,723 | $ | 95,784 | ||||
Net income per share | $ | 2 | $ | 1.92 |
Basis_of_Presentation_Details
Basis of Presentation (Details) (CWH) | Dec. 31, 2013 |
Building | |
Property | |
CWH | ' |
Basis of Presentation | ' |
Number of properties owned | 30 |
Number of buildings, leasable lands and easements contributed to the reporting entity | 251 |
Organization_Details
Organization (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Mar. 06, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2012 | Feb. 16, 2012 | Dec. 31, 2011 | Mar. 31, 2012 |
CWH | CWH | CWH | ||||||
Organization | ' | ' | ' | ' | ' | ' | ' | ' |
Number of common shares issued | ' | ' | ' | ' | ' | 22,000,000 | 1,000 | 22,000,000 |
Issuance of demand note | ' | ' | ' | ' | $400,000 | $400,000 | ' | ' |
Number of common shares sold in public offering | 8,000,000 | 10,500,000 | ' | ' | ' | ' | ' | ' |
Common shares sold pursuant to option to purchase additional shares | 1,200,000 | ' | 1,050,000 | 1,200,000 | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basis of Presentation | ' | ' | ' |
Percentage of interest in subsidiaries | 100.00% | ' | ' |
Real Estate Properties | ' | ' | ' |
Changes to rental income from amortization of capitalized above market and below market leases | ($1,011) | ($587) | ($354) |
Amortization related to leases, included in depreciation and amortization expense | 9,758 | 3,781 | 2,788 |
Acquired real estate leases | ' | ' | ' |
Acquired real estate leases, net | 129,426 | 95,248 | ' |
Assumed real estate lease obligations | ' | ' | ' |
Capitalized below market lease values | 37,776 | 29,547 | ' |
Less: accumulated amortization | -10,810 | -9,113 | ' |
Assumed real estate lease obligations, net | 26,966 | 20,434 | ' |
Future amortization of net intangible acquired lease assets and liabilities | ' | ' | ' |
2014 | 12,621 | ' | ' |
2015 | 12,639 | ' | ' |
2016 | 12,187 | ' | ' |
2017 | 10,948 | ' | ' |
2018 | 11,288 | ' | ' |
Thereafter | 42,777 | ' | ' |
Impairment charges | 0 | 0 | ' |
Environmental remediation costs | ' | ' | ' |
Accrued environmental remediation cost | 8,150 | 8,644 | ' |
Deferred Leasing Costs | ' | ' | ' |
Deferred leasing costs | 7,858 | 6,438 | ' |
Accumulated amortization of deferred leasing costs | 2,259 | 1,622 | ' |
Future amortization of deferred leasing costs to be recognized during the current terms of the existing leases | ' | ' | ' |
2014 | 847 | ' | ' |
2015 | 777 | ' | ' |
2016 | 627 | ' | ' |
2017 | 575 | ' | ' |
2018 | 469 | ' | ' |
Thereafter | 2,304 | ' | ' |
Deferred Financing Fees | ' | ' | ' |
Deferred financing fees | 7,761 | 6,567 | ' |
Accumulated amortization of deferred financing fees | 2,927 | 1,050 | ' |
Future amortization of deferred financing fees to be recognized with respect to loans | ' | ' | ' |
2014 | 1,914 | ' | ' |
2015 | 1,914 | ' | ' |
2016 | 751 | ' | ' |
2017 | 256 | ' | ' |
Thereafter | 0 | ' | ' |
Revenue Recognition | ' | ' | ' |
Contingent rental income recognized | 1,330 | 1,552 | 1,102 |
Net Income Per Share | ' | ' | ' |
Common share equivalents during the period (in shares) | 0 | ' | ' |
Minimum | ' | ' | ' |
Real Estate Properties | ' | ' | ' |
Estimated useful lives | '7 years | ' | ' |
Maximum | ' | ' | ' |
Real Estate Properties | ' | ' | ' |
Estimated useful lives | '40 years | ' | ' |
Above market lease | ' | ' | ' |
Acquired real estate leases | ' | ' | ' |
Acquired real estate leases, gross | 44,851 | 45,192 | ' |
Less: accumulated amortization | -14,556 | -12,171 | ' |
Acquired real estate leases, net | 30,295 | 33,021 | ' |
Lease Origination | ' | ' | ' |
Acquired real estate leases | ' | ' | ' |
Acquired real estate leases, gross | 117,491 | 71,879 | ' |
Less: accumulated amortization | -18,360 | -9,652 | ' |
Acquired real estate leases, net | $99,131 | $62,227 | ' |
Real_Estate_Properties_Details
Real Estate Properties (Details) (USD $) | 12 Months Ended | 1 Months Ended | ||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2013 | Mar. 31, 2013 | Jul. 31, 2013 | Oct. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 |
sqft | Property | Provo, UT | San Antonio, TX | Richmond, VA | Vernon Hills, IL | San Jose, CA | Addison, TX | |
Property | Building | Property | Property | Property | Building | sqft | Building | |
Building | sqft | Building | sqft | sqft | Building | Property | ||
Building | sqft | Building | Property | Property | sqft | |||
Purchase price allocation of real estate properties acquired | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties acquired | 7 | 11 | 1 | 1 | 1 | 1 | 2 | 1 |
Number of buildings acquired | 11 | 16 | 2 | 1 | 1 | 1 | 4 | 2 |
Square Feet | 1,440,270 | ' | 125,225 | 99,986 | 310,950 | 99,579 | 250,731 | 553,799 |
Weighted average lease term | '10 years 8 months 12 days | ' | ' | ' | ' | ' | ' | ' |
Purchase Price | $384,820 | $438,013 | $34,720 | $18,600 | $143,600 | $18,000 | $64,900 | $105,000 |
Land | 57,416 | ' | 3,400 | 3,197 | 13,849 | 4,095 | 22,768 | 10,107 |
Buildings and Improvements | 288,989 | ' | 25,938 | 12,175 | 109,823 | 9,882 | 36,278 | 94,893 |
Acquired Real Estate Leases | 46,804 | ' | 5,382 | 3,507 | 19,928 | 4,023 | 13,964 | ' |
Assumed Real Estate Lease Obligations | -8,389 | ' | ' | -279 | ' | ' | -8,110 | ' |
Other Assumed Liabilities | -1,095 | ' | ' | ' | ' | -1,095 | ' | ' |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | 232 |
Expenditures committed on leases executed during the period | 1,526 | ' | ' | ' | ' | ' | ' | ' |
Area of leases executed during the period (in square feet) | 884,000 | ' | ' | ' | ' | ' | ' | ' |
Committed but unspent tenant related obligations based on executed leases | 4,328 | ' | ' | ' | ' | ' | ' | ' |
Future minimum lease payments scheduled to be received | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 159,233 | ' | ' | ' | ' | ' | ' | ' |
2015 | 161,793 | ' | ' | ' | ' | ' | ' | ' |
2016 | 156,677 | ' | ' | ' | ' | ' | ' | ' |
2017 | 154,696 | ' | ' | ' | ' | ' | ' | ' |
2018 | 151,409 | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 1,134,602 | ' | ' | ' | ' | ' | ' | ' |
Total | $1,918,410 | ' | ' | ' | ' | ' | ' | ' |
Tenant_Concentration_and_Segme1
Tenant Concentration and Segment Information (Details) | 12 Months Ended |
Dec. 31, 2013 | |
item | |
Tenant Concentration and Segment Information | ' |
Number of business segments | 1 |
Minimum percentage of rentable square footage of a building or land leased to single tenant | 90.00% |
Number of tenants under single tenant leased building or land parcel | 1 |
Indebtedness_Details
Indebtedness (Details) (USD $) | 12 Months Ended | 10 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 18, 2014 | Feb. 28, 2013 | Jan. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jan. 31, 2014 |
Property | Revolving credit facility, due in 2016 | Revolving credit facility, due in 2016 | Revolving credit facility, due in 2016 | Revolving credit facility, due in 2016 | Revolving credit facility, due in 2016 | Term loan, due in 2017 | Term loan, due in 2017 | Mortgage note payable, due in 2017 | Mortgage note payable, due in 2017 | Mortgage note payable, due in 2016 | Mortgage note payable, due in 2016 | Mortgage note payable | Mortgage note payable | ||
Chelmsford, MA | |||||||||||||||
Subsequent event | |||||||||||||||
Indebtedness | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured revolving credit facility | $95,000 | $159,000 | $95,000 | $159,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan | 350,000 | 350,000 | ' | ' | ' | ' | ' | 350,000 | 350,000 | ' | ' | ' | ' | ' | ' |
Mortgage notes payable | 27,778 | 27,147 | ' | ' | ' | ' | ' | ' | ' | 19,361 | 19,862 | 7,786 | 7,916 | ' | ' |
Total | 472,778 | 536,147 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.95% | 5.95% | 5.69% | 5.69% | ' | ' |
Unamortized premium | ' | 1,417 | ' | ' | ' | ' | ' | ' | ' | 1,131 | 1,415 | 286 | 416 | ' | ' |
Maximum borrowing capacity of revolving credit facility | ' | ' | ' | 750,000 | ' | 750,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Period of extension in maturity | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increased maximum borrowing capacity | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable base rate | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' |
Spread on variable rate (as a percent) | ' | ' | ' | 1.30% | ' | ' | ' | ' | 1.55% | ' | ' | ' | ' | ' | ' |
Facility fee (as a percent) | ' | ' | ' | 0.30% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at the end of the period (as a percent) | ' | ' | ' | 1.47% | ' | ' | ' | ' | 1.72% | ' | ' | ' | ' | ' | ' |
Weighted average annual interest rate (as a percent) | ' | ' | 1.54% | 1.50% | ' | ' | ' | 1.78% | 1.74% | ' | ' | ' | ' | ' | ' |
Principal repayment due until maturity | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings outstanding | ' | ' | ' | 159,000 | 170,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 700,000 | ' | ' | ' | ' | ' | ' |
Number of real estate properties collateralized | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate net book value of secured properties | ' | 29,265 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount outstanding under mortgage notes | ' | 534,730 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,730 | ' |
Repayment of mortgage notes | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,500 |
Indebtedness_Details_2
Indebtedness (Details 2) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Repayment of debt | ' |
2014 | $230 |
2015 | 245 |
2016 | 166,755 |
2017 | 367,500 |
Total | $534,730 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value of Financial Instruments | ' | ' |
Mortgage notes payable | $27,147 | $27,778 |
Carrying Amount | Mortgage note payable | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Mortgage notes payable | 27,147 | ' |
Fair Value | Mortgage note payable | ' | ' |
Fair Value of Financial Instruments | ' | ' |
Mortgage notes payable | $27,588 | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Nov. 30, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | 31-May-13 | Feb. 28, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | Dec. 31, 2013 | Jan. 31, 2014 | Feb. 07, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Trustees | Subsequent event | RMR | RMR | RMR | RMR | ||||||||||||
Distribution declared | Officers and employees | ||||||||||||||||
item | |||||||||||||||||
Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares, shares authorized | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | 75,000,000 | 50,000,000 | 75,000,000 | ' | ' | ' | ' | ' | ' |
Common shares, par value (in dollars per share) | ' | ' | ' | ' | ' | ' | $0.01 | ' | $0.01 | $0.01 | $0.01 | ' | ' | ' | ' | ' | ' |
Number of shares granted to each trustee under the award plan | ' | ' | ' | ' | ' | ' | ' | ' | 47,200 | 32,592 | ' | 2,000 | ' | 2,936 | 37,200 | 22,592 | ' |
Aggregate market value of shares granted under the award plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $276 | ' | ' | $921 | $561 | ' |
Market value of common shares awarded to each trustee (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55 | ' | ' | ' | ' | ' |
Number of equal annual installments for vesting of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Number of Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested shares at the beginning of the period | ' | ' | ' | ' | ' | ' | ' | ' | 17,714 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 47,200 | 32,592 | ' | 2,000 | ' | 2,936 | 37,200 | 22,592 | ' |
Vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -22,120 | -14,878 | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | -251 | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested shares at the end of the period | ' | ' | ' | ' | ' | ' | 17,714 | ' | 42,543 | 17,714 | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Grant Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested shares at the beginning of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $24.84 | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $25.37 | $24.84 | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $26.12 | $24.84 | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $24.80 | ' | ' | ' | ' | ' | ' | ' | ' |
Unvested shares at the end of the period (in dollars per share) | ' | ' | ' | ' | ' | ' | $24.84 | ' | $24.79 | $24.84 | ' | ' | ' | ' | ' | ' | ' |
Vesting schedule of unvested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 11,714 | ' | ' | ' | ' | ' | ' | ' | ' |
2015 (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 11,714 | ' | ' | ' | ' | ' | ' | ' | ' |
2016 (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 11,714 | ' | ' | ' | ' | ' | ' | ' | ' |
2017 (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 7,401 | ' | ' | ' | ' | ' | ' | ' | ' |
Share Awards, additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated future compensation expense for the unvested shares | ' | ' | ' | ' | ' | ' | ' | ' | 1,138 | ' | ' | ' | ' | ' | ' | ' | ' |
Closing share price of the entity's common shares (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $26.74 | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average period of recognition of compensation expenses | ' | ' | ' | ' | ' | ' | ' | ' | '25 months | ' | ' | ' | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | 645 | 508 | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance under the award plan | ' | ' | ' | ' | ' | ' | ' | ' | 2,920,459 | ' | ' | ' | ' | ' | ' | ' | ' |
Share Issuances: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares issued, including shares issued under underwriters' option to purchase additional shares | ' | ' | 10,500,000 | ' | ' | 9,200,000 | 8,050,000 | 9,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Price per share (in dollars per share) | ' | ' | $28.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common shares | ' | ' | 283,599 | ' | ' | 180,814 | ' | ' | 283,502 | 363,657 | ' | ' | ' | ' | ' | ' | ' |
Distributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Distribution paid on common shares (in dollars per share) | $0.46 | $0.44 | ' | $0.44 | $0.42 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Quarterly dividend payable on common stock (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.46 | ' | ' | ' | ' |
Distribution to common shareholders | $22,922 | $21,909 | ' | $17,284 | $16,499 | ' | ' | ' | ' | ' | ' | ' | $22,922 | ' | ' | ' | ' |
Distributions per share paid or payable (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $1.76 | $0.91 | ' | ' | ' | ' | ' | ' | ' |
Characterization of distributions paid or accrued as a percentage of ordinary income | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Related_Person_Transactions_De
Related Person Transactions (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 10 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 7 Months Ended | 12 Months Ended | |||||||||||||
In Thousands, except Share data, unless otherwise specified | Jul. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 07, 2014 | Jul. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 23, 2013 | Dec. 23, 2013 | Dec. 23, 2013 | Feb. 16, 2012 | Dec. 31, 2011 | Mar. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
RMR | RMR | RMR | RMR | RMR | RMR | RMR | RMR | RMR | RMR | RMR | RMR | RMR | CWH | CWH | CWH | CWH | CWH | AIC | AIC | AIC | AIC | |||||||
item | item | Forecast | Maximum | Maximum | Maximum | Amended Agreement | Amended Agreement | Amended Agreement | Maximum | item | ||||||||||||||||||
item | Maximum | Minimum | ||||||||||||||||||||||||||
item | ||||||||||||||||||||||||||||
Related Person Transactions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of employees | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of agreements to avail management and administrative services | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fee payable as a percentage of aggregate book value of real estate assets or transferred assets | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.50% | 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% | 0.70% | ' | ' | ' | ' | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold amount of real estate investments for payment of base management fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000 | $250,000 | $250,000 | ' | $250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold amount of other real estate investments for payment of base management fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fee payable as a percentage of average closing price per share of common shares on NYSE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fee payable, average market capitalization | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base management fee payable as a percentage of average market capitalization exceeding specified amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold amount of average market capitalizaton for payment of base management fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of measurement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shorter period applicable in the case of calculation of the incentive management fee for 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period applicable in the case of calculation of the incentive management fee for 2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of shares issued in payment of an incentive management fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.33% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Portion of remaining shares to be vested in equal annual installments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66.66% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of equal annual installments for vesting of common shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of times registration right can be exercisable in a year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest previously held (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' |
Annual business management fee as a percentage of aggregate cost of properties acquired in excess of $250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Incentive fee as a percentage of the product of weighted average common shares outstanding on a fully diluted basis and the excess, if any of the Normalized FFO Per Share for current fiscal year over the preceding fiscal year | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business management fees incurred | ' | ' | ' | ' | ' | ' | ' | ' | 4,719 | 9,503 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares expected to issue for incentive fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,865 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property management fees as a percentage of gross collected rents | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Construction supervision fees as a percentage of construction costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property management and construction supervision fees incurred | ' | ' | ' | ' | ' | ' | ' | ' | 3,039 | 5,449 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Pro rata share of related party's costs of providing internal audit function | ' | ' | ' | ' | ' | ' | ' | ' | ' | 203 | 162 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Successive renewal period for business and property management agreements | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of prior written notice for termination of either agreement by entity or related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of business days notice for termination of either agreement by related party, if entity undergoes a change of control | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares granted under the award plan | ' | ' | ' | ' | 47,200 | 32,592 | 2,936 | ' | ' | 37,200 | 22,592 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate value of restricted shares granted (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 921 | 561 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting rights percentage for restricted shares vesting on the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting rights percentage for restricted shares vesting on each of the next four anniversaries of the grant date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of anniversaries of the grant date for vesting of restricted shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | ' | ' | ' | ' | ' |
Percentage of outstanding common shares owned | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 44.10% | ' | ' | ' | ' | ' |
Common shares issued, including shares issued under underwriters' option to purchase additional shares | 10,500,000 | 9,200,000 | 8,050,000 | 9,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net proceeds from issuance of common shares | 283,599 | 180,814 | ' | ' | 283,502 | 363,657 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note repaid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' |
Number of common shares issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | 1,000 | 22,000,000 | ' | 22,000,000 | ' | ' | ' | ' |
Related party reimbursement expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 636 | ' | ' | ' | ' | ' |
Common shares issued by equity method investee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,000 |
Value of common shares issued by equity method investee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,335 |
Investment at carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,629 | 5,913 | 5,629 |
Number of other companies owning outstanding shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' |
Percentage of interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12.50% | ' |
Coverage of property insurance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' |
Recognized income related to investment | ' | ' | ' | ' | 334 | 269 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 269 | 334 | ' |
Property insurance program term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' |
Number of entities to whom RMR provides management services | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate coverage of combined directors' and officers' liability insurance policy purchased by the related party | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-indemnifiable coverage of combined directors' and officers' liability insurance policy purchased by the related party | ' | ' | ' | ' | ' | ' | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premium paid for combined directors' and officers' liability insurance policy | ' | ' | ' | ' | ' | ' | ' | $133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $559 | ' | ' | $324 |
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, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Selected Quarterly Financial Data (Unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $49,933 | $48,584 | $45,946 | $43,860 | $36,405 | $30,878 | $27,920 | $27,587 | $188,323 | $122,790 | $108,622 |
Net income | $24,079 | $23,594 | $22,787 | $22,632 | $17,169 | $15,719 | $15,332 | $17,655 | $93,092 | $65,875 | $68,943 |
Net income per common share (in dollars per share) | $0.48 | $0.47 | $0.58 | $0.58 | $0.52 | $0.50 | $0.49 | $1.34 | $2.09 | $2.43 | ' |
Common distributions declared (in dollars per share) | $0.46 | $0.44 | $0.44 | $0.42 | $0.42 | $0.40 | $0.09 | ' | $0.46 | $0.42 | ' |
Pro_Forma_Information_Unaudite2
Pro Forma Information (Unaudited) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Mar. 06, 2012 | Jul. 31, 2013 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 16, 2012 | Dec. 31, 2011 | Mar. 31, 2012 |
Building | Property | Building | CWH | CWH | CWH | ||||||
Property | Building | Property | |||||||||
Pro Forma Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of properties acquired | ' | ' | ' | ' | 11 | ' | 7 | 11 | ' | ' | ' |
Number of buildings acquired | ' | ' | ' | ' | 16 | ' | 11 | 16 | ' | ' | ' |
Purchase price | ' | ' | ' | ' | $438,013 | ' | $384,820 | $438,013 | ' | ' | ' |
Assumption of mortgage debt | ' | ' | ' | ' | ' | ' | ' | 26,000 | ' | ' | ' |
Number of common shares sold in public offering | 8,000,000 | ' | ' | 10,500,000 | ' | ' | ' | ' | ' | ' | ' |
Number of common shares issued | ' | ' | ' | ' | ' | ' | ' | ' | 22,000,000 | 1,000 | 22,000,000 |
Common shares issued, including shares issued under underwriters' option to purchase additional shares | ' | 10,500,000 | 9,200,000 | ' | 8,050,000 | 9,200,000 | ' | ' | ' | ' | ' |
Common shares sold pursuant to option to purchase additional shares | 1,200,000 | ' | ' | ' | 1,050,000 | 1,200,000 | ' | ' | ' | ' | ' |
Price per share (in dollars per share) | ' | ' | ' | $28.25 | $24 | ' | ' | $24 | ' | ' | ' |
Pro forma results of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | 202,414 | 197,709 | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | 99,723 | 95,784 | ' | ' | ' |
Net income per share (in dollars per share) | ' | ' | ' | ' | ' | ' | $2 | $1.92 | ' | ' | ' |
Revenue | ' | ' | ' | ' | ' | ' | 72,435 | ' | ' | ' | ' |
Operating income | ' | ' | ' | ' | ' | ' | $59,019 | ' | ' | ' | ' |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for doubtful accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts | ' | ' | ' |
Movement in valuation and qualifying accounts | ' | ' | ' |
Balance at Beginning of Period | $644 | $4,067 | $4,221 |
Charged to Costs and Expenses | 352 | -23 | 579 |
Deductions | -60 | -3,400 | -733 |
Balance at End of Period | $936 | $644 | $4,067 |
SCHEDULE_III_REAL_ESTATE_AND_A1
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ' | ' | ' |
Encumbrances | $27,147 | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 731,859 | ' | ' | ' |
Buildings and Equipment | 877,394 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 37,204 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 732,509 | ' | ' | ' |
Buildings and Equipment | 913,948 | ' | ' | ' |
Total | 1,646,457 | 1,295,778 | 907,336 | 897,603 |
Accumulated Depreciation | 67,223 | 46,697 | 36,240 | 28,765 |
Inverness Center, Birmingham, AL | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 4,209 | ' | ' | ' |
Buildings and Equipment | 32,096 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 326 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 4,209 | ' | ' | ' |
Buildings and Equipment | 32,422 | ' | ' | ' |
Total | 36,631 | ' | ' | ' |
Accumulated Depreciation | 2,490 | ' | ' | ' |
Cinram Distribution Center, Huntsville, AL | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 5,628 | ' | ' | ' |
Buildings and Equipment | 67,373 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 5,628 | ' | ' | ' |
Buildings and Equipment | 67,373 | ' | ' | ' |
Total | 73,001 | ' | ' | ' |
Accumulated Depreciation | 2,246 | ' | ' | ' |
Regents Center, Tempe, AZ | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,125 | ' | ' | ' |
Buildings and Equipment | 10,122 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 1,999 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,125 | ' | ' | ' |
Buildings and Equipment | 12,121 | ' | ' | ' |
Total | 13,246 | ' | ' | ' |
Accumulated Depreciation | 4,691 | ' | ' | ' |
Campbell Place, Carlsbad, CA | ' | ' | ' | ' |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ' | ' | ' |
Encumbrances | 19,360 | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,381 | ' | ' | ' |
Buildings and Equipment | 17,918 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,381 | ' | ' | ' |
Buildings and Equipment | 17,918 | ' | ' | ' |
Total | 21,299 | ' | ' | ' |
Accumulated Depreciation | 560 | ' | ' | ' |
Folsom Corporate Center, Folsom, CA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,450 | ' | ' | ' |
Buildings and Equipment | 25,504 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,450 | ' | ' | ' |
Buildings and Equipment | 25,504 | ' | ' | ' |
Total | 28,954 | ' | ' | ' |
Accumulated Depreciation | 1,913 | ' | ' | ' |
Bayside Technology Park, Fremont, CA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 5,200 | ' | ' | ' |
Buildings and Equipment | 4,860 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 521 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 5,200 | ' | ' | ' |
Buildings and Equipment | 5,381 | ' | ' | ' |
Total | 10,581 | ' | ' | ' |
Accumulated Depreciation | 585 | ' | ' | ' |
North First Street, San Jose, CA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 6,160 | ' | ' | ' |
Buildings and Equipment | 7,961 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 6,160 | ' | ' | ' |
Buildings and Equipment | 7,961 | ' | ' | ' |
Total | 14,121 | ' | ' | ' |
Rio Robles Drive, San Jose, CA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 16,608 | ' | ' | ' |
Buildings and Equipment | 28,316 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 16,608 | ' | ' | ' |
Buildings and Equipment | 28,316 | ' | ' | ' |
Total | 44,924 | ' | ' | ' |
350 West Java Drive, Sunnyvale, CA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 11,552 | ' | ' | ' |
Buildings and Equipment | 12,461 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 11,552 | ' | ' | ' |
Buildings and Equipment | 12,461 | ' | ' | ' |
Total | 24,013 | ' | ' | ' |
Accumulated Depreciation | 363 | ' | ' | ' |
333 Inverness Drive South, Englewood, CO | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,230 | ' | ' | ' |
Buildings and Equipment | 11,801 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 415 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,230 | ' | ' | ' |
Buildings and Equipment | 12,216 | ' | ' | ' |
Total | 15,446 | ' | ' | ' |
Accumulated Depreciation | 468 | ' | ' | ' |
2 Tower Drive, Wallingford, CT | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,471 | ' | ' | ' |
Buildings and Equipment | 2,165 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 8 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,471 | ' | ' | ' |
Buildings and Equipment | 2,173 | ' | ' | ' |
Total | 3,644 | ' | ' | ' |
Accumulated Depreciation | 397 | ' | ' | ' |
1 Targeting Center, Windsor, CT | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,850 | ' | ' | ' |
Buildings and Equipment | 7,226 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,850 | ' | ' | ' |
Buildings and Equipment | 7,226 | ' | ' | ' |
Total | 9,076 | ' | ' | ' |
Accumulated Depreciation | 256 | ' | ' | ' |
235 Great Pond Road, Windsor, CT | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 2,400 | ' | ' | ' |
Buildings and Equipment | 9,469 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 2,400 | ' | ' | ' |
Buildings and Equipment | 9,469 | ' | ' | ' |
Total | 11,869 | ' | ' | ' |
Accumulated Depreciation | 335 | ' | ' | ' |
2100 NW 82nd Ave, Miami, FL | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 144 | ' | ' | ' |
Buildings and Equipment | 1,297 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 376 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 144 | ' | ' | ' |
Buildings and Equipment | 1,673 | ' | ' | ' |
Total | 1,817 | ' | ' | ' |
Accumulated Depreciation | 542 | ' | ' | ' |
King Street Ground Lease, Honolulu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,342 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,342 | ' | ' | ' |
Total | 1,342 | ' | ' | ' |
Mapunapuna Ground Leases, Honolulu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 333,883 | ' | ' | ' |
Buildings and Equipment | 9,404 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 1,141 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 334,533 | ' | ' | ' |
Buildings and Equipment | 9,895 | ' | ' | ' |
Total | 344,428 | ' | ' | ' |
Accumulated Depreciation | 2,422 | ' | ' | ' |
Safeway Shopping Center, Honolulu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 11,437 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 161 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 11,437 | ' | ' | ' |
Buildings and Equipment | 161 | ' | ' | ' |
Total | 11,598 | ' | ' | ' |
Accumulated Depreciation | 49 | ' | ' | ' |
Salt Lake Shopping Center, Honolulu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 9,660 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 9,660 | ' | ' | ' |
Total | 9,660 | ' | ' | ' |
Sand Island Ground Leases, Honolulu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 94,033 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 170 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 94,033 | ' | ' | ' |
Buildings and Equipment | 170 | ' | ' | ' |
Total | 94,203 | ' | ' | ' |
Accumulated Depreciation | 10 | ' | ' | ' |
Sand Island Buildings, Honolulu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 13,845 | ' | ' | ' |
Buildings and Equipment | 11,307 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 11,220 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 13,845 | ' | ' | ' |
Buildings and Equipment | 22,527 | ' | ' | ' |
Total | 36,372 | ' | ' | ' |
Accumulated Depreciation | 4,480 | ' | ' | ' |
Waiwai Ground Leases, Honolulu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 2,112 | ' | ' | ' |
Buildings and Equipment | 455 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 2,112 | ' | ' | ' |
Buildings and Equipment | 455 | ' | ' | ' |
Total | 2,567 | ' | ' | ' |
Accumulated Depreciation | 114 | ' | ' | ' |
Campbell Buildings, Kapolei, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 4,074 | ' | ' | ' |
Buildings and Equipment | 7,736 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 11,908 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 4,074 | ' | ' | ' |
Buildings and Equipment | 19,644 | ' | ' | ' |
Total | 23,718 | ' | ' | ' |
Accumulated Depreciation | 3,264 | ' | ' | ' |
Campbell Easements, Kapolei, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 10,496 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 10,496 | ' | ' | ' |
Total | 10,496 | ' | ' | ' |
Campbell Ground Leases, Kapolei, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 101,905 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 989 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 101,905 | ' | ' | ' |
Buildings and Equipment | 989 | ' | ' | ' |
Total | 102,894 | ' | ' | ' |
Accumulated Depreciation | 109 | ' | ' | ' |
Waipahu Ground Lease, Waipahu, HI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 717 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 717 | ' | ' | ' |
Total | 717 | ' | ' | ' |
951 Trails Road, Eldridge, IA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 470 | ' | ' | ' |
Buildings and Equipment | 7,480 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 376 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 470 | ' | ' | ' |
Buildings and Equipment | 7,856 | ' | ' | ' |
Total | 8,326 | ' | ' | ' |
Accumulated Depreciation | 1,305 | ' | ' | ' |
2300 N 33rd Ave, Newton, IA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 500 | ' | ' | ' |
Buildings and Equipment | 13,236 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 163 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 500 | ' | ' | ' |
Buildings and Equipment | 13,399 | ' | ' | ' |
Total | 13,899 | ' | ' | ' |
Accumulated Depreciation | 1,800 | ' | ' | ' |
440 North Fairway Drive, Vernon Hills, IL | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 4,095 | ' | ' | ' |
Buildings and Equipment | 9,882 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 4,095 | ' | ' | ' |
Buildings and Equipment | 9,882 | ' | ' | ' |
Total | 13,977 | ' | ' | ' |
Accumulated Depreciation | 62 | ' | ' | ' |
Capitol Tower, Topeka, KS | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,300 | ' | ' | ' |
Buildings and Equipment | 15,918 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 103 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,300 | ' | ' | ' |
Buildings and Equipment | 16,021 | ' | ' | ' |
Total | 17,321 | ' | ' | ' |
Accumulated Depreciation | 564 | ' | ' | ' |
The Atrium at Circleport II, Erlanger, KY | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 2,020 | ' | ' | ' |
Buildings and Equipment | 9,545 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 1,035 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 2,020 | ' | ' | ' |
Buildings and Equipment | 10,580 | ' | ' | ' |
Total | 12,600 | ' | ' | ' |
Accumulated Depreciation | 2,556 | ' | ' | ' |
300 and 330 Billerica Road, Chelmsford, MA | ' | ' | ' | ' |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ' | ' | ' |
Encumbrances | 7,787 | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,419 | ' | ' | ' |
Buildings and Equipment | 14,049 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 313 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,419 | ' | ' | ' |
Buildings and Equipment | 14,362 | ' | ' | ' |
Total | 17,781 | ' | ' | ' |
Accumulated Depreciation | 747 | ' | ' | ' |
111 Powdermill Road, Maynard, MA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,603 | ' | ' | ' |
Buildings and Equipment | 26,180 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 100 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,603 | ' | ' | ' |
Buildings and Equipment | 26,280 | ' | ' | ' |
Total | 29,883 | ' | ' | ' |
Accumulated Depreciation | 4,456 | ' | ' | ' |
7001 Columbia Gateway Drive, Columbia, MD | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,700 | ' | ' | ' |
Buildings and Equipment | 24,592 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,700 | ' | ' | ' |
Buildings and Equipment | 24,592 | ' | ' | ' |
Total | 28,292 | ' | ' | ' |
Accumulated Depreciation | 615 | ' | ' | ' |
3550 Green Court, Ann Arbor, MI | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 2,877 | ' | ' | ' |
Buildings and Equipment | 9,081 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 1,004 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 2,877 | ' | ' | ' |
Buildings and Equipment | 10,085 | ' | ' | ' |
Total | 12,962 | ' | ' | ' |
Accumulated Depreciation | 228 | ' | ' | ' |
8687 Carling Road, Liverpool, NY | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 375 | ' | ' | ' |
Buildings and Equipment | 3,265 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 1,924 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 375 | ' | ' | ' |
Buildings and Equipment | 5,189 | ' | ' | ' |
Total | 5,564 | ' | ' | ' |
Accumulated Depreciation | 965 | ' | ' | ' |
1212 Pittsford - Victor Road, Pittsford, NY | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 528 | ' | ' | ' |
Buildings and Equipment | 3,755 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 465 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 528 | ' | ' | ' |
Buildings and Equipment | 4,220 | ' | ' | ' |
Total | 4,748 | ' | ' | ' |
Accumulated Depreciation | 1,213 | ' | ' | ' |
500 Canal View Boulevard, Rochester, NY | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,462 | ' | ' | ' |
Buildings and Equipment | 12,482 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 1,201 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,462 | ' | ' | ' |
Buildings and Equipment | 13,683 | ' | ' | ' |
Total | 15,145 | ' | ' | ' |
Accumulated Depreciation | 3,148 | ' | ' | ' |
32150 Just Imagine Drive, Avon, OH | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 2,200 | ' | ' | ' |
Buildings and Equipment | 23,280 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 2,200 | ' | ' | ' |
Buildings and Equipment | 23,280 | ' | ' | ' |
Total | 25,480 | ' | ' | ' |
Accumulated Depreciation | 2,668 | ' | ' | ' |
501 Ridge Avenue, Hanover, PA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 4,800 | ' | ' | ' |
Buildings and Equipment | 22,200 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 30 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 4,800 | ' | ' | ' |
Buildings and Equipment | 22,230 | ' | ' | ' |
Total | 27,030 | ' | ' | ' |
Accumulated Depreciation | 2,940 | ' | ' | ' |
16001 North Dallas Parkway, Addison, TX | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 10,107 | ' | ' | ' |
Buildings and Equipment | 95,124 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 43 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 10,107 | ' | ' | ' |
Buildings and Equipment | 95,167 | ' | ' | ' |
Total | 105,274 | ' | ' | ' |
Accumulated Depreciation | 2,180 | ' | ' | ' |
Research Park, Austin, TX | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,441 | ' | ' | ' |
Buildings and Equipment | 13,007 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 660 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,441 | ' | ' | ' |
Buildings and Equipment | 13,667 | ' | ' | ' |
Total | 15,108 | ' | ' | ' |
Accumulated Depreciation | 4,925 | ' | ' | ' |
4421 W. John Carp. Freeway, Irving, TX | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 542 | ' | ' | ' |
Buildings and Equipment | 4,879 | ' | ' | ' |
Costs Capitalized Subsequent to Acquisition | 553 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 542 | ' | ' | ' |
Buildings and Equipment | 5,432 | ' | ' | ' |
Total | 5,974 | ' | ' | ' |
Accumulated Depreciation | 2,126 | ' | ' | ' |
3600 Wiseman Boulevard, San Antonio, TX | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,197 | ' | ' | ' |
Buildings and Equipment | 12,175 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,197 | ' | ' | ' |
Buildings and Equipment | 12,175 | ' | ' | ' |
Total | 15,372 | ' | ' | ' |
Accumulated Depreciation | 228 | ' | ' | ' |
1800 Novell Place, Provo, UT | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 6,700 | ' | ' | ' |
Buildings and Equipment | 78,940 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 6,700 | ' | ' | ' |
Buildings and Equipment | 78,940 | ' | ' | ' |
Total | 85,640 | ' | ' | ' |
Accumulated Depreciation | 3,125 | ' | ' | ' |
4885-4931 North 300 West, Provo, UT | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 3,400 | ' | ' | ' |
Buildings and Equipment | 25,938 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 3,400 | ' | ' | ' |
Buildings and Equipment | 25,938 | ' | ' | ' |
Total | 29,338 | ' | ' | ' |
Accumulated Depreciation | 540 | ' | ' | ' |
501 South 5th Street, Richmond, VA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 13,849 | ' | ' | ' |
Buildings and Equipment | 109,823 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 13,849 | ' | ' | ' |
Buildings and Equipment | 109,823 | ' | ' | ' |
Total | 123,672 | ' | ' | ' |
Accumulated Depreciation | 1,373 | ' | ' | ' |
Orbital Sciences Campus, Sterling, VA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 9,875 | ' | ' | ' |
Buildings and Equipment | 62,238 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 9,875 | ' | ' | ' |
Buildings and Equipment | 62,238 | ' | ' | ' |
Total | 72,113 | ' | ' | ' |
Accumulated Depreciation | 1,686 | ' | ' | ' |
181 Battaile Drive, Winchester, VA | ' | ' | ' | ' |
Initial Cost to Company | ' | ' | ' | ' |
Land | 1,487 | ' | ' | ' |
Buildings and Equipment | 12,854 | ' | ' | ' |
Gross Amount Carried at Close of Period | ' | ' | ' | ' |
Land | 1,487 | ' | ' | ' |
Buildings and Equipment | 12,854 | ' | ' | ' |
Total | 14,341 | ' | ' | ' |
Accumulated Depreciation | $2,479 | ' | ' | ' |
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, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ' | ' |
Aggregate cost for U.S. federal tax purposes | $1,725,835 | ' | ' |
Real Estate Properties | ' | ' | ' |
Balance at the beginning of the period | 1,295,778 | 907,336 | 897,603 |
Additions | 350,684 | 388,478 | 10,118 |
Disposals | -5 | -36 | -385 |
Balance at the end of the period | 1,646,457 | 1,295,778 | 907,336 |
Accumulated Depreciation | ' | ' | ' |
Balance at the beginning of the period | -46,697 | -36,240 | -28,765 |
Additions | -20,531 | -10,493 | -7,860 |
Disposals | 5 | 36 | 385 |
Balance at the end of the period | ($67,223) | ($46,697) | ($36,240) |
Buildings and improvements | Maximum | ' | ' | ' |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ' | ' |
Depreciation period | '40 years | ' | ' |
Equipment | Maximum | ' | ' | ' |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ' | ' | ' |
Depreciation period | '12 years | ' | ' |