Equity Investments

3 Months Ended

Mar. 31, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Investments

Equity Investments

Investment in SIR

SIR is a REIT that is primarily focused on owning and investing in net leased, single tenant properties. SIR was an unconsolidated equity method investment from July 2, 2013 until July 9, 2014. On July 9, 2014, we sold our entire stake of 22,000,000 common shares of SIR. As a result of this sale, we no longer hold any interest in SIR.

For the three months ended March 31, 2014, we recorded equity in earnings of $11.0 million related to our investment in SIR on our condensed consolidated statement of operations. During the three months ended March 31, 2014, we received cash distributions from SIR totaling $10.1 million.

The following unaudited summarized income statement information of SIR as reported in SIR's Quarterly Report on Form 10-Q for the three months ended March 31, 2014 is as follows (in thousands, except per share data):

	Three Months Ended   March 31, 2014
Rental income	$	45,063
Tenant reimbursements and other income	7,965
Total revenues	53,028
Operating expenses	9,979
Depreciation and amortization	9,294
Acquisition related costs	238
General and administrative	5,176
Total expenses	24,687
Operating income	28,341
Interest expense	(3,358		)
Gain on early extinguishment of debt	243
Income before income tax expense and equity in earnings of an investee	25,226
Income tax expense	(71		)
Equity in loss of an investee	(97		)
Net income	$	25,058
Weighted average common shares outstanding	49,841
Net income per common share	$	0.50

Investment in AIC

As of May 9, 2014, we had a net investment of $5.8 million in AIC, an insurance company that was owned in equal proportion by us, our former manager Reit Management & Research LLC (RMR), GOV, SIR and four other companies to which RMR provides management services.  For the three months ended March 31, 2014, we recorded equity in loss of $(0.1) million related to our investment in AIC on our condensed consolidated statement of operations.

On May 9, 2014, as a result of the removal of the former Trustees and in accordance with the terms of the shareholders agreement between us and the other AIC shareholders, the other AIC shareholders exercised their right to purchase all of the 20,000 shares of AIC we then owned.  We received $5.8 million in aggregate proceeds from this sale.  We no longer own any interest in AIC.  Our participation in the AIC property insurance program expired in June 2014.  See Note 17 for additional information about our investment in AIC.