Equity Investments (Tables)

6 Months Ended

Jun. 30, 2014

Equity Investments

Schedule of equity investments

At June 30, 2014 and December 31, 2013, we had the following equity investments in Select Income REIT, or SIR, Government Properties Income Trust, or GOV, and Affiliates Insurance Company, or AIC (dollars in thousands):

	Ownership Percentage				Equity Investments				Equity in Earnings (Loss)
									Three Months Ended				Six Months Ended
	June 30,		December 31,		June 30,		December 31,		June 30,				June 30,
	2014		2013		2014		2013		2014		2013		2014			2013
SIR	36.7	%	44.2	%	$	531,862	$	512,078	$	12,412	$	—	$	23,444		$	—
GOV	0.0	%	0.0	%	—		—		—		—		—			4,111
AIC	0.0	%	12.5	%	—		5,913		42		159		(56		)	310
					$	531,862	$	517,991	$	12,454	$	159	$	23,388		$	4,421

SIR

Equity Investments

Summary of balance sheet information of equity method investee

Amounts are in thousands, except per share data.

	June 30,		December 31,
	2014		2013
Real estate properties, net	$	1,773,316	$	1,579,234
Acquired real estate leases, net	125,571		129,426
Cash and cash equivalents	20,804		20,025
Rents receivable, net	59,557		55,335
Other assets, net	17,643		17,839
Total assets	$	1,996,891	$	1,801,859
Revolving credit facility	$	74,000	$	159,000
Term loan	350,000		350,000
Mortgage notes payable	19,103		27,147
Assumed real estate lease obligations, net	27,020		26,966
Other liabilities	40,465		40,055
Shareholders’ equity	1,486,303		1,198,691
Total liabilities and shareholders’ equity	$	1,996,891	$	1,801,859

Summary of income statement information of equity method investee

Amounts are in thousands, except per share data.

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Rental income	$	48,465		$	38,706		$	93,528		$	76,164
Tenant reimbursements and other income	8,092			7,240			16,057			13,642
Total revenues	56,557			45,946			109,585			89,806
Operating expenses	9,985			9,011			19,964			16,885
Depreciation and amortization	10,495			7,295			19,789			13,960
Acquisition related costs	136			156			374			689
General and administrative	2,198			2,957			7,374			5,676
Total expenses	22,814			19,419			47,501			37,210
Operating income	33,743			26,527			62,084			52,596
Interest expense	(3,634		)	(3,779		)	(6,992		)	(7,252		)
Gain on early extinguishment of debt	—			—			243			—
Income before income tax expense and equity in earnings of an investee	30,109			22,748			55,335			45,344
Income tax expense	(19		)	(40		)	(90		)	(80		)
Equity in earnings of an investee	118			79			21			155
Net income	$	30,208		$	22,787		$	55,266		$	45,419
Weighted average common shares outstanding	54,178			39,288			52,021			39,285
Net income per common share	$	0.56		$	0.58		$	1.06		$	1.16