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Fair Value of Assets and Liabilities (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value Disclosures [Abstract]  
Assets and liabilities recurring and nonrecurring measured at fair value
The table below presents certain of our assets measured at fair value at March 31, 2018, categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset: 
 
 
 
 
Fair Value at Reporting Date Using
 
 
 
 
Quoted Prices in 
 
 
 
Significant
 
 
 
 
Active Markets for
 
Significant Other
 
Unobservable
 
 
 
 
Identical Assets
 
Observable Inputs
 
Inputs
Description
 
Total
 
(Level 1)
 
(Level 2)
 
(Level 3)
Recurring Fair Value Measurements
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
       Investment in RMR Inc. (1)
 
$
184,487

 
$
184,487

 
$
—

 
$
—

Investment in Five Star (2)
 
$
5,506

 
$
5,506

 
$
—

 
$
—


(1)
Our 2,637,408 shares of class A common stock of The RMR Group Inc., or RMR Inc., which are included in other assets in our condensed consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these shares is $69,826 as of March 31, 2018. During the three months ended March 31, 2018, we recorded an unrealized gain of $28,088 to adjust the carrying value of our investment in RMR Inc. class A common shares to their fair value.
(2)
Our 4,235,000 common shares of Five Star, which are included in other assets in our condensed consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our historical cost basis for these shares is $6,353 as of March 31, 2018. During the three months ended March 31, 2018, we recorded an unrealized loss of $847 to adjust the carrying value of our investment in Five Star common shares to their fair value.
Schedule of carrying value and fair value of the financial instruments
The fair values of these financial instruments approximated their carrying values in our condensed consolidated financial statements as of such dates, except as follows: 
 
 
As of March 31, 2018
 
As of December 31, 2017
Description
 
Carrying Amount (1)
 
Estimated Fair Value
 
Carrying Amount (1)
 
Estimated Fair Value
Senior unsecured notes
 
$
2,213,811

 
$
2,292,648

 
$
1,725,662

 
$
1,810,882

Secured debts(2)
 
817,834

 
793,815

 
794,710

 
783,353

 
 
$
3,031,645

 
$
3,086,463

 
$
2,520,372

 
$
2,594,235

(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 secured debts at estimated fair value on the date of assumption and we are amortizing the fair value adjustments, if any, to interest expense over their respective terms to adjust interest expense to the estimated market interest rates as of the date of assumption.