Shareholders' Equity

9 Months Ended

Sep. 30, 2011

Shareholders' Equity

Shareholders' Equity

Note 8.  Shareholders’ Equity

On May 10, 2011, we issued 2,000 common shares of beneficial interest, par value $0.01 per share, valued at $26.57 per share, the closing price of our common shares on the New York Stock Exchange, or NYSE, on that day, to each of our five Trustees as part of their annual compensation.  On September 16, 2011, pursuant to our equity compensation plan, we granted an aggregate of 73,050 common shares valued at $19.96 per share, the closing price of our common shares on the NYSE on that day, to our officers and certain employees of our manager, RMR.

In June 2011, we issued 11,000,000 series E cumulative redeemable preferred shares in a public offering, raising net proceeds of $265,391.  Each series E preferred share has a liquidation preference of $25.00 and requires dividends payable in equal quarterly payments of $1.8125, 7 ¼% of the liquidation preference per annum.  Our series E preferred shares are redeemable, at our option, for $25.00 each plus accrued and unpaid dividends at any time on or after May 15, 2016.  Net proceeds from this offering were used to reduce amounts outstanding under our revolving credit facility.

In July 2011, we issued 11,500,000 common shares in a public offering, raising net proceeds of $264,056.  Net proceeds from this offering were used to repay amounts outstanding under our revolving credit facility and for general business purposes, including funding acquisitions.

Other comprehensive income includes unrealized gains or losses on the fair value of our interest rate swap agreements, other investments, and foreign currency translation adjustments.  Our interest rate swap agreements qualify as cash flow hedges and convert the floating interest rate on a $175,000 mortgage note payable to a fixed interest rate.  The following is a reconciliation of net income to total comprehensive (loss) income for the three and nine months ended September 30, 2011 and 2010:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Comprehensive income:
Net income	$	28,535		$	65,810		$	95,111		$	113,105
Unrealized loss on derivative instrument	(6,577		)	(5,150		)	(8,651		)	(15,965		)
Unrealized loss on investment in available for sale securities	—			(141		)	—			(141		)
Realized gain on sale of investment in available for sale securities	—			—			(18		)	—
Foreign currency translation adjustments	(33,289		)	—			(17,584		)	—
Increase in share of investees other comprehensive income	14			—			58			—
Total comprehensive (loss) income	$	(11,317	)	$	60,519		$	68,916		$	96,999