Equity Investments

6 Months Ended

Jun. 30, 2015

Equity Method Investments and Joint Ventures [Abstract]

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 and six months ended June 30, 2014, we recorded equity in earnings of $12.4 million and $23.4 million, respectively, related to our investment in SIR on our condensed consolidated statement of operations. During the three and six months ended June 30, 2014, we received cash distributions from SIR totaling $10.6 million and $20.7 million, respectively.

The following unaudited summarized income statement information of SIR as reported in SIR's Quarterly Report on Form 10-Q for the three and six months ended June 30, 2014 is as follows (in thousands, except per share data):



	Three Months Ended			Six Months Ended
	June 30, 2014
Rental income	$	48,465		93,528
Tenant reimbursements and other income	8,092			16,057
Total revenues	56,557			109,585

Operating expenses	9,985			19,964
Depreciation and amortization	10,495			19,789
Acquisition related costs	136			374
General and administrative	2,198			7,374
Total expenses	22,814			47,501
Operating income	33,743			62,084
Interest expense	(3,634		)	(6,992		)
Gain on early extinguishment of debt	—			243
Income before income tax expense and equity in earnings of an investee	30,109			55,335
Income tax expense	(19		)	(90		)
Equity in earnings of an investee	118			21
Net income	$	30,208		$	55,266
Weighted average common shares outstanding	54,178			52,021
Net income per common share	$	0.56		$	1.06

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), SIR and five other companies to which RMR provides management services.

On May 9, 2014, as a result of the removal of the former Trustees and in accordance with the terms of the shareholder 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. For the period from April 1, 2014 through May 9, 2014 and for the period from January 1, 2014 through May 9, 2014, we recorded equity in earnings (loss) of $0.04 million and $(0.1) million, respectively, related to our investment in AIC on our condensed consolidated statement of operations.

Our participation in the AIC property insurance program expired in June 2014. See Note 17 for additional information about our investment in AIC.