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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:      
Net income (loss) $ 12,090 $ 57,843 $ (209,961)
Adjustments to reconcile net income (loss) to cash provided by operating activities:      
Depreciation 52,427 42,489 38,987
Net amortization of debt premiums and discounts and debt issuance costs 3,420 2,832 1,376
Gain on sale of real estate 0 (79) 0
(Gain) loss on early extinguishment of debt 1,715 (104) (34)
Straight line rental income (5,582) (2,691) (3,978)
Amortization of acquired real estate leases 56,174 29,003 28,624
Amortization of deferred leasing costs 3,802 3,265 2,349
Other non-cash expenses, net 300 284 817
Loss on impairment of real estate 9,490 0 0
Increase in carrying value of property included in discontinued operations (619) 0 0
Equity in earnings of investees (21,571) (35,518) (18,640)
Net (gain) loss on issuance of shares by Select Income REIT (72) (86) 42,145
Loss on distribution to common shareholders of The RMR Group Inc. common stock 0 0 12,368
Loss on impairment of Select Income REIT investment 0 0 203,297
Distributions of earnings from Select Income REIT 18,640 32,425 21,882
Change in assets and liabilities:      
Restricted cash (1,563) 492 1,258
Deferred leasing costs (5,017) (10,196) (4,741)
Rents receivable (4,990) 1,670 (2,729)
Other assets 1,368 25 515
Accounts payable and accrued expenses 11,696 1,970 1,097
Due to related persons 1,339 634 725
Net cash provided by operating activities 133,047 124,258 115,357
CASH FLOWS FROM INVESTING ACTIVITIES:      
Real estate acquisitions and deposits (1,188,030) (200,331) 0
Real estate improvements (45,940) (32,999) (19,163)
Investment in Select Income REIT 0 0 (95,821)
Investment in The RMR Group Inc. 0 0 (7,226)
Distributions in excess of earnings from Select Income REIT 32,192 17,910 25,148
Distributions in excess of earnings from our unconsolidated joint ventures 482 0 0
Proceeds from sale of properties, net 15,083 263 30,460
Net cash used in investing activities (1,186,213) (215,157) (66,602)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Repayment of mortgage notes payable (11,909) (107,933) (48,908)
Proceeds from issuance of senior notes, after discounts 297,954 300,235 0
Proceeds from issuance of common shares, net 493,866 0 0
Borrowings on unsecured revolving credit facility 645,000 399,000 195,000
Repayments on unsecured revolving credit facility (235,000) (356,000) (78,000)
Payment of debt issuance costs (4,644) (544) (21)
Repurchase of common shares (264) (337) (172)
Distributions to common shareholders (145,209) (122,366) (121,660)
Net cash provided by (used in) financing activities 1,039,794 112,055 (53,761)
Increase (decrease) in cash and cash equivalents (13,372) 21,156 (5,006)
Cash and cash equivalents at beginning of year 29,941 8,785 13,791
Cash and cash equivalents at end of year 16,569 29,941 8,785
Supplemental cash flow information:      
Interest paid 55,048 41,139 35,500
Income taxes paid 117 111 143
Non-cash investing activities:      
Investment in The RMR Group Inc. paid in common shares 0 0 13,545
Sale of real estate 0 3,600 0
Mortgage note receivable related to sale of real estate 0 (3,600) 0
Distribution of The RMR Group Inc. common stock received from Select Income REIT 0 0 5,244
Working capital assumed (1,596) 0 0
Non-cash financing activities:      
Assumption of mortgage debt 167,548 0 0
Distribution to common shareholders of The RMR Group Inc. common stock 0 0 (9,132)
Preferred units of limited partnership issued $ 20,221 $ 0 $ 0