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Fair Value of Assets and Liabilities (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Assets and Liabilities Recurring and Nonrecurring Measured at Fair Value

The estimated fair value of these assets as of December 31, 2018 were as follows:

														Significant
		Total as of				Quoted Prices in Active				Significant Other				Unobservable
		December 31,				Markets for Identical				Observable Inputs				Inputs
Description		2018				Assets (Level 1)				(Level 2)				(Level 3)
Non-Recurring Fair Value Measurements
Assets:
Real estate properties held for sale		$	1,928			$	—			$	1,928			$	—
Real estate properties at fair value		$	11,167			$	—			$	—			$	11,167

The following table presents certain of our assets that are measured at fair value on a recurring basis at December 31, 2018 categorized by the level of inputs used in the valuation of each asset or liability.

														Significant
		Total as of				Quoted Prices in Active				Significant Other				Unobservable
		December 31,				Markets for Identical				Observable Inputs				Inputs
Description		2018				Assets (Level 1)				(Level 2)				(Level 3)
Recurring Fair Value Measurements
Assets:
Investment in RMR Inc. (1)		$	139,994			$	139,994			$	—			$	—
Investment in Five Star (2)		$	2,033			$	2,033			$	—			$	—

(1) Our 2,637,408 shares of class A common stock of RMR Inc., which are included in investments in equity securities in our 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 year ended December 31, 2018. During the year ended December 31, 2018, we recorded an unrealized loss of $16,404 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 investments in equity securities in our consolidated balance sheets, are reported at fair value which is based on quoted market prices (Level 1 inputs). Our adjusted cost basis for these shares is $6,353 as of the year ended December 31, 2018. During the year ended December 31, 2018, we recorded an unrealized loss of $4,320, to adjust the carrying value of our investment in Five Star common shares to their fair value.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The fair values of these financial instruments approximated their carrying values in our consolidated financial statements as of such dates, except as follows: 

		As of December 31, 2018								As of December 31, 2017
Description		Carrying Amount (1)				Estimated Fair Value				Carrying Amount (1)				Estimated Fair Value
Senior unsecured notes		$	2,216,945			$	2,138,202			$	1,725,662			$	1,810,882
Secured debt (2)		744,186				723,003				805,404				794,047
		$	2,961,131			$	2,861,205			$	2,531,066			$	2,604,929

(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 notes 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 notes to reduce interest expense to the estimated market interest rates as of the date of acquisition.

X

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
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-Section 50
-Paragraph 2C
-URI http://asc.fasb.org/extlink&oid=99377789&loc=SL7498348-110258

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
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-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=99377789&loc=d3e19207-110258

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- Definition

Tabular disclosure of information pertaining to carrying amount and estimated fair value of short-term and long-term debt instruments or arrangements, including but not limited to, identification of terms, features, and collateral requirements.

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