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Fair Value of Assets and Liabilities (Tables) | 3 Months Ended
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Mar. 31, 2023
Fair Value Disclosures [Abstract] |
Schedule of Assets and Liabilities Recurring and Nonrecurring Measured at Fair Value | The following table presents certain of our assets that are measured at fair value at March 31, 2023 and December 31, 2022, categorized by the level of inputs as defined in the fair value hierarchy under GAAP, used in the valuation of each asset.
|  | As of March 31, 2023 |  | As of December 31, 2022
Description |  | Carrying Amount |  | Estimated Fair Value |  | Carrying Amount |  | Estimated Fair Value
Recurring Fair Value Measurements Assets: |  |  |  |  |  |  |  |
Investment in AlerisLife (Level 1) (1) |  | $ | — |  |  | $ | — |  |  | $ | 5,880 |  |  | $ | 5,880 |
Investment in unconsolidated joint venture (Level 3) (2) |  | $ | 104,764 |  |  | $ | 104,764 |  |  | $ | 104,697 |  |  | $ | 104,697 |
Investment in unconsolidated joint venture (Level 3) (3) |  | $ | 48,655 |  |  | $ | 48,655 |  |  | $ | 50,780 |  |  | $ | 50,780 |
Non-Recurring Fair Value Measurements Assets: |  |  |  |  |  |  |  |
Real estate properties at fair value (Level 3) (4) |  | $ | 6,000 |  |  | $ | 6,000 |  |  | $ | — |  |  | $ | — |
(1)On February 2, 2023, in connection with the proposed acquisition of AlerisLife Inc., or AlerisLife, by a subsidiary of ABP Trust, which is the controlling shareholder of The RMR Group Inc., or RMR Inc., we agreed to tender all of the 10,691,658 shares of common stock of AlerisLife, we owned at a price of $1.31 per share, and the acquisition was completed on March 20, 2023. Prior to March 20, 2023, these AlerisLife common shares were included in other assets, net in our condensed consolidated balance sheets, and were reported at fair value, which was based upon quoted market prices on Nasdaq (Level 1 inputs). During the three months ended March 31, 2023 and 2022, we recorded an unrealized gain of $8,126 and an unrealized loss of $8,553, respectively, which are included in gains and losses on equity securities, net in our condensed consolidated statements of comprehensive income (loss), to adjust the carrying value of our former investment in AlerisLife common shares to their fair value. See Note 10 for further information about our investment in AlerisLife. (2)The 10% equity interest we own in the Seaport JV is included in investments in unconsolidated joint ventures in our condensed consolidated balance sheet, and is reported at fair value, which is based on significant unobservable inputs (Level 3 inputs). The significant unobservable inputs used in the fair value analysis are a discount rate of 7.00%, an exit capitalization rate of 6.00%, a holding period of 10 years and market rents. The assumptions made in the fair value analysis are based on the location, type and nature of the property, and current and anticipated market conditions, which are derived from appraisers. See Note 2 for further information regarding this joint venture. (3)The 20% equity interest we own in the LSMD JV is included in investments in unconsolidated joint ventures in our condensed consolidated balance sheet, and is reported at fair value, which is based on significant unobservable inputs (Level 3 inputs). The significant unobservable inputs used in the fair value analysis are discount rates of between 6.00% and 7.25%, exit capitalization rates of between 4.50% and 7.00%, holding periods of 10 years and market rents. The assumptions we made in the fair value analysis are based on the location, type and nature of each property, and current and anticipated market conditions, which are derived from appraisers. See Note 2 for further information regarding this joint venture. (4)During the three months ended March 31, 2023, we recorded impairment charges of $3,617 to reduce the carrying value of one of our senior living communities to its estimated fair value of $3,500 based upon the market comparison approach, which utilizes recent transactions. During the three months ended March 31, 2023, we also recorded impairment charges of $2,308 to reduce the carrying value of one of our medical office properties to its estimated fair value of $2,500 based upon the income approach and unobservable inputs such as estimated market rent, operating expense assumptions, vacancy data and capitalization rates. The valuation techniques and significant unobservable inputs used in the valuation of these properties are considered Level 3 inputs as defined in the fair value hierarchy under GAAP.
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, 2023 |  | As of December 31, 2022
Description |  | Carrying Amount (1) |  | Estimated Fair Value |  | Carrying Amount (1) |  | Estimated Fair Value
Senior unsecured notes, 4.750% coupon rate, due 2024 |  | $ | 249,698 |  |  | $ | 225,153 |  |  | $ | 249,628 |  |  | $ | 211,250 |
Senior unsecured notes, 9.750% coupon rate, due 2025 |  | 496,146 |  |  | 479,980 |  |  | 495,710 |  |  | 478,985 |
Senior unsecured notes, 4.750% coupon rate, due 2028 |  | 493,791 |  |  | 337,550 |  |  | 493,473 |  |  | 284,375 |
Senior unsecured notes, 4.375% coupon rate, due 2031 |  | 493,201 |  |  | 359,530 |  |  | 492,986 |  |  | 317,130 |
Senior unsecured notes, 5.625% coupon rate, due 2042 |  | 342,660 |  |  | 178,640 |  |  | 342,565 |  |  | 151,200 |
Senior unsecured notes, 6.250% coupon rate, due 2046 |  | 243,411 |  |  | 133,800 |  |  | 243,338 |  |  | 115,300 |
Secured debts (2) |  | 29,574 |  |  | 28,089 |  |  | 30,177 |  |  | 28,275 |
|  | $ | 2,348,481 |  |  | $ | 1,742,742 |  |  | $ | 2,347,877 |  |  | $ | 1,586,515 |
(1)Includes unamortized net debt issuance costs, premiums and discounts. (2)We assumed certain of these secured debts in connection with our acquisition 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 adjust interest expense to the estimated market interest rates as of the date of acquisition.

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- 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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19279-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2C -URI https://asc.fasb.org/extlink&oid=126976982&loc=SL7498348-110258 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bb) -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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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. + References No definition available. + Details
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