Investments in Available for Sale Securities

3 Months Ended

Mar. 31, 2016

Investments in Available for Sale Securities

Investments in Available for Sale Securities

Note 4.  Investments in Available for Sale Securities

As of March 31, 2016, we owned 4,235,000 common shares of Five Star. We classify these shares as available for sale securities and carry them at fair market value in other assets in our condensed consolidated balance sheets, with unrealized gains and losses reported as a component of shareholders’ equity. Our historical cost basis for these shares is $14,230. At March 31, 2016, our investment in Five Star had a fair value of $9,698, resulting in an unrealized loss of $4,532 based on Five Star’s quoted share price at March 31, 2016 ($2.29 per share).

In addition, at March 31, 2016, we owned 2,637,408 shares of class A common stock of The RMR Group Inc., or RMR Inc. We also classify these shares of RMR Inc. as available for sale securities and carry them at fair value in other assets in our condensed consolidated balance sheets, with unrealized gains and losses reported as a component of shareholders’ equity. Our historical cost basis for these shares is $69,826. At March 31, 2016, our investment in RMR Inc. had a fair value of $65,962, resulting in an unrealized loss of $3,864 based on RMR Inc.’s quoted share price at March 31, 2016 ($25.01 per share).

See Notes 7 and 10 below for further information regarding our investments in available for sale securities.