Shareholders' Equity

9 Months Ended

Sep. 30, 2012

Shareholders' Equity

Shareholders' Equity

Note 8.  Shareholders’ Equity

The following is a reconciliation of changes in our shareholders’ equity for the nine months ended September 30, 2012:

	Shareholders’			Shareholders’
	Equity			Equity
	Attributable to			Attributable to			Total
	CommonWealth			Noncontrolling			Shareholders’
	REIT			Interest			Equity
Balance at December 31, 2011	$	3,568,517		$	—		$	3,568,517
Net income	57,363			10,062			67,425
Other comprehensive income:
Unrealized loss on derivative instrument	(1,987		)	—			(1,987		)
Foreign currency translation adjustments	5,597			—			5,597
Increase in share of investees other comprehensive income	55			10			65
Total comprehensive income	61,028			10,072			71,100
Issuance of shares of subsidiary, net	(24,369		)	205,183			180,814
Redemption of preferred shares	(150,000		)	—			(150,000		)
Share grants	1,240			107			1,347
Distributions	(167,146		)	(4,508		)	(171,654		)
Balance at September 30, 2012	$	3,289,270		$	210,854		$	3,500,124

CWH (excluding SIR) Distributions:

On February 15, 2012, we paid a quarterly distribution on our series C preferred shares of $0.4453 per share, or $2,672, a quarterly distribution on our series D preferred shares of $0.4063 per share, or $6,167, and a quarterly distribution on our series E preferred shares of $0.4531 per share, or $4,984, all of which were paid to shareholders of record as of February 1, 2012.

On February 21, 2012, we paid a quarterly distribution on our common shares of $0.50 per share, or $41,861, to shareholders of record on January 20, 2012.

On May 15, 2012, we paid a quarterly distribution on our series C preferred shares of $0.4453 per share, or $2,672, a quarterly distribution on our series D preferred shares of $0.4063 per share, or $6,167, and a quarterly distribution on our series E preferred shares of $0.4531 per share, or $4,984, all of which were paid to shareholders of record as of May 1, 2012.

On May 24, 2012, we paid a quarterly distribution on our common shares of $0.50 per share, or $41,861, to shareholders of record on April 23, 2012.

On August 15, 2012, we paid a quarterly distribution on our series C preferred shares of $0.4453 per share, or $2,672, a quarterly distribution on our series D preferred shares of $0.4063 per share, or $6,167, and a quarterly distribution on our series E preferred shares of $0.4531 per share, or $4,984, all of which were paid to shareholders of record as of August 1, 2012.

On August 24, 2012, we paid a quarterly distribution on our common shares of $0.50 per share, or $41,866, to shareholders of record on July 26, 2012.

In October 2012, we declared a new quarterly distribution rate of $0.25 per common share, or approximately $21,000, to be paid on or about November 21, 2012 to shareholders of record on October 22, 2012.  We also announced in October 2012 a quarterly distribution on our series D preferred shares of $0.4063 per share, or $6,167, and a quarterly distribution on our series E preferred shares of $0.4531 per share, or $4,984, both of which we expect to pay on or about November 15, 2012 to our preferred shareholders of record as of November 1, 2012.

SIR Distributions:

On August 20, 2012, SIR paid a distribution on its common shares of $0.49 per share, or $15,288, to its shareholders of record on July 24, 2012.  This distribution included a quarterly distribution of $0.40 per SIR common share with respect to the quarter ended June 30, 2012 and $0.09 per SIR common share reflecting SIR’s first 20 days as a public company during the prior quarter.

In October 2012, SIR declared a new quarterly distribution rate of $0.42 per SIR common share, or approximately $13,100, to be paid on or about November 19, 2012 to SIR shareholders of record on October 22, 2012.

Share Issuances (excluding SIR):

On May 8, 2012, pursuant to our equity compensation plan we issued 2,000 common shares of beneficial interest, par value $0.01 per share, valued at $18.74 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 then Trustees as part of their annual compensation.  In addition, on July 18, 2012, pursuant to our equity compensation plan we issued 2,000 common shares valued at $19.27 per share, the closing price of our common shares on the NYSE on that day, to a new Trustee, who was elected to our Board that day, as part of his annual compensation.

On September 14, 2012, pursuant to our equity compensation plan we granted an aggregate of 71,617 common shares, which were valued at $15.52 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.

Share Issuances by SIR:

On September 14, 2012, pursuant to its equity compensation plan, SIR granted 2,000 of its common shares to each of its five trustees as part of their annual compensation and granted an aggregate of 22,592 of its common shares to its officers and certain employees of RMR.  All of these common shares granted by SIR on September 14, 2012 were valued at $24.84 per share, the closing price of SIR’s common shares on the NYSE on that day.

Preferred Share Redemption:

In August 2012, we redeemed all 6,000,000 shares of our 7 1/8% series C preferred stock for par plus accrued and unpaid distributions (approximately $150,000).  We funded this redemption using proceeds from our senior notes issued during July 2012.