Fair Value of Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2016

Fair Value of Assets and Liabilities

Assets and liabilities recurring and nonrecurring measured at fair value

							Significant
	Total as of		Quoted Prices in Active		Significant Other		Unobservable
	June 30,		Markets for Identical		Observable Inputs		Inputs
Description	2016		Assets (Level 1)		(Level 2)		(Level 3)
Recurring Fair Value Measurements
Assets:
Investments in available for sale securities(1)	$	91,591	$	91,591	$	—	$	—
Non-Recurring Fair Value Measurements
Assets:
Assets held for sale(2)	$	21,307	$	—	$	—	$	21,307

⁽¹⁾

Our investments in available for sale securities include our 4,235,000 common shares of Five Star and our 2,637,408 shares of RMR Inc. class A common stock. The fair values of these shares are based upon quoted prices at June 30, 2016 in active markets (Level 1 inputs). Our historical cost basis for our Five Star and RMR Inc. shares is $14,230 and $69,826, respectively, as of June 30, 2016. The unrealized loss of $4,320 for our Five Star shares and the unrealized gain of $11,855 for our RMR Inc. shares as of June 30, 2016 are included in cumulative other comprehensive income (loss) in our condensed consolidated balance sheets. We evaluated the decline in the fair value of the Five Star shares and determined that based on the severity and duration of the decline, and our ability and intent to hold these investments for a reasonable period of time sufficient for a forecasted recovery of fair value, we do not consider these investments to be other-than-temporarily impaired at June 30, 2016.

Assets held for sale consist of five MOBs held for sale as of June 30, 2016. These MOBs are recorded at their estimated fair values less costs to sell. We used offers from third parties to purchase these properties and knowledge of local real estate markets to determine their fair values as of June 30, 2016.

Schedule of carrying value and fair value of the financial instruments


	As of June 30, 2016				As of December 31, 2015
Description	Carrying Amount (1)		Estimated Fair Value		Carrying Amount (1)		Estimated Fair Value
Senior unsecured notes	$	1,721,306	$	1,827,523	$	1,478,536	$	1,548,613
Secured debt and capital leases (2)		647,176		694,701		679,295		724,615
	$	2,368,482	$	2,522,224	$	2,157,831	$	2,273,228

⁽¹⁾

Includes unamortized debt issuance costs, premiums and discounts.

⁽²⁾

We assumed certain of these secured debts in connection with our acquisitions of certain properties. We recorded the assumed mortgage debts at estimated fair value on the date of acquisition and we are amortizing the fair value adjustments, if any, to interest expense over the respective terms of the mortgage debts to reduce interest expense to the estimated market interest rates as of the date of acquisition.