Segment Information

6 Months Ended

Jun. 30, 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 June 30, 2016
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Rental income	$	64,061	$	—	$	—	$	64,061
Expenses:
Real estate taxes		7,566		—		—		7,566
Utility expenses		3,673		—		—		3,673
Other operating expenses		13,266		—		—		13,266
Depreciation and amortization		17,985		—		—		17,985
Acquisition related costs		64		—		—		64
General and administrative		—		—		4,008		4,008
Total expenses		42,554		—		4,008		46,562
Operating income (loss)		21,507		—		(4,008)		17,499
Dividend income		—		—		363		363
Interest income		—		—		10		10
Interest expense		(429)		—		(9,885)		(10,314)
Gain on issuance of shares by Select Income REIT		—		16		—		16
Income (loss) from continuing operations before income taxes and
equity in earnings of investees		21,078		16		(13,520)		7,574
Income tax expense		—		—		(35)		(35)
Equity in earnings of investees		—		9,383		17		9,400
Income (loss) from continuing operations		21,078		9,399		(13,538)		16,939
Loss from discontinued operations		(126)		—		—		(126)
Net income (loss)	$	20,952	$	9,399	$	(13,538)	$	16,813

	Six Months Ended June 30, 2016
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Rental income	$	127,672	$	—	$	—	$	127,672
Expenses:
Real estate taxes		15,219		—		—		15,219
Utility expenses		7,847		—		—		7,847
Other operating expenses		26,177		—		—		26,177
Depreciation and amortization		36,309		—		—		36,309
Acquisition related costs		216		—		—		216
General and administrative		—		—		7,534		7,534
Total expenses		85,768		—		7,534		93,302
Operating income (loss)		41,904		—		(7,534)		34,370
Dividend income		—		—		363		363
Interest income		—		—		16		16
Interest expense		(1,524)		—		(18,154)		(19,678)
Gain on early extinguishment of debt		104		—		—		104
Gain on issuance of shares by Select Income REIT		—		16		—		16
Income (loss) from continuing operations before income taxes and
equity in earnings (losses) of investees		40,484		16		(25,309)		15,191
Income tax expense		—		—		(50)		(50)
Equity in earnings of investees		—		19,240		94		19,334
Income (loss) from continuing operations		40,484		19,256		(25,265)		34,475
Loss from discontinued operations		(275)		—		—		(275)
Net income (loss)	$	40,209	$	19,256	$	(25,265)	$	34,200
	As of June 30, 2016
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Total Assets	$	1,700,724	$	492,762	$	57,724	$	2,251,210

	Three Months Ended June 30, 2015
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Rental income	$	62,113	$	—	$	—	$	62,113
Expenses:
Real estate taxes		7,674		—		—		7,674
Utility expenses		4,001		—		—		4,001
Other operating expenses		12,190		—		—		12,190
Depreciation and amortization		17,299		—		—		17,299
Acquisition related costs		183		—		—		183
General and administrative		—		—		3,713		3,713
Total expenses		41,347		—		3,713		45,060
Operating income (loss)		20,766		—		(3,713)		17,053
Interest expense		(2,282)		—		(7,173)		(9,455)
Loss on issuance of shares by Select Income REIT		—		(1,353)		—		(1,353)
Loss on impairment of Select Income REIT investment		—		(203,297)		—		(203,297)
Income (loss) from continuing operations before income taxes and
equity in earnings of investees		18,484		(204,650)		(10,886)		(197,052)
Income tax expense		—		—		(32)		(32)
Equity in earnings of investees		—		6,072		22		6,094
Income (loss) from continuing operations		18,484		(198,578)		(10,896)		(190,990)
Loss from discontinued operations		(173)		—		—		(173)
Net income (loss)	$	18,311	$	(198,578)	$	(10,896)	$	(191,163)

	Six Months Ended June 30, 2015
	Investment		Investment
	in Real Estate		in SIR		Corporate		Consolidated
Rental income	$	124,772	$	—	$	—	$	124,772
Expenses:
Real estate taxes		15,084		—		—		15,084
Utility expenses		8,572		—		—		8,572
Other operating expenses		24,400		—		—		24,400
Depreciation and amortization		34,514		—		—		34,514
Acquisition related costs		189		—		—		189
General and administrative		—		—		7,717		7,717
Total expenses		82,759		—		7,717		90,476
Operating income (loss)		42,013		—		(7,717)		34,296
Interest income		—		—		12		12
Interest expense		(14,208)		—		(4,549)		(18,757)
Loss on issuance of shares by Select Income REIT		—		(42,124)		—		(42,124)
Loss on impairment of Select Income REIT investment		—		(203,297)		—		(203,297)
Income (loss) from continuing operations before income taxes and
equity in earnings of investees		27,805		(245,421)		(12,254)		(229,870)
Income tax expense		—		—		(62)		(62)
Equity in earnings of investees		—		5,683		95		5,778
Income (loss) from continuing operations		27,805		(239,738)		(12,221)		(224,154)
Loss from discontinued operations		(379)		—		—		(379)
Net income (loss)	$	27,426	$	(239,738)	$	(12,221)	$	(224,533)
	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