Segment Information

3 Months Ended

Mar. 31, 2016

Segment Information

Segment Information

Note 12.   Segment Information

We operate in two separate reportable business segments: ownership of properties that are primarily leased to government tenants and our equity method investment in SIR.

	Three Months Ended March 31, 2016
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Rental income	$	63,611	$	—	$	—	$	63,611
Expenses:
Real estate taxes		7,653		—		—		7,653
Utility expenses		4,174		—		—		4,174
Other operating expenses		12,911		—		—		12,911
Depreciation and amortization		18,324		—		—		18,324
Acquisition related costs		152		—		—		152
General and administrative		—		—		3,526		3,526
Total expenses		43,214		—		3,526		46,740
Operating income (loss)		20,397		—		(3,526)		16,871
Interest income		—		—		6		6
Interest expense		(8,269)		—		(1,095)		(9,364)
Gain on early extinguishment of debt		104		—		—		104
Income (loss) from continuing operations before income taxes and
equity in earnings of investees		12,232		—		(4,615)		7,617
Income tax expense		—		—		(15)		(15)
Equity in earnings of investees		—		9,857		77		9,934
Income (loss) from continuing operations		12,232		9,857		(4,553)		17,536
Loss from discontinued operations		(149)		—		—		(149)
Net income (loss)	$	12,083	$	9,857	$	(4,553)	$	17,387
	As of March 31, 2016
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Total Assets	$	1,708,910	$	493,259	$	57,226	$	2,259,395

	Three Months Ended March 31, 2015
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Rental income	$	62,659	$	—	$	—	$	62,659
Expenses:
Real estate taxes		7,410		—		—		7,410
Utility expenses		4,571		—		—		4,571
Other operating expenses		12,210		—		—		12,210
Depreciation and amortization		17,215		—		—		17,215
Acquisition related costs		6		—		—		6
General and administrative		—		—		4,004		4,004
Total expenses		41,412		—		4,004		45,416
Operating income (loss)		21,247		—		(4,004)		17,243
Interest income		—		—		12		12
Interest expense		(2,267)		—		(7,035)		(9,302)
Loss on issuance of shares by Select Income REIT		—		(40,771)				(40,771)
Income (loss) from continuing operations before income taxes and
equity in earnings (losses) of investees		18,980		(40,771)		(11,027)		(32,818)
Income tax expense		—		—		(30)		(30)
Equity in earnings (losses) of investees		—		(388)		72		(316)
Income (loss) from continuing operations		18,980		(41,159)		(10,985)		(33,164)
Loss from discontinued operations		(206)		—		—		(206)
Net income (loss)	$	18,774	$	(41,159)	$	(10,985)	$	(33,370)
	As of December 31, 2015
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Total Assets	$	1,639,462	$	491,369	$	37,679	$	2,168,510