Equity Investments

At December 31, 2015, and 2014, we did not have any ownership interests in equity investments. For the years ended December 31, 2014, and 2013, equity in earnings is as follows (in thousands):



	Year Ended December 31,
	2014			2013
SIR	$	24,516		$	21,153
GOV	—			4,111
AIC	(56		)	490
	$	24,460		$	25,754

Investment in SIR

SIR was one of our consolidated subsidiaries until July 2, 2013 and was an unconsolidated equity 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. We received $704.8 million in cash representing $32.04 per share and recognized a gain on sale of equity investment of $171.8 million in our consolidated statement of operations. Proceeds from this sale were used to repay our revolving credit facility and certain mortgage loans (Note 9). As a result of this sale, we no longer hold any interest in SIR.

During the second quarter of 2014, SIR issued 10,000,000 common shares in a public offering for $29.00 per common share, raising net proceeds (after deducting underwriters’ discounts and commissions and expenses) of approximately $277.4 million. We recognized a gain on this sale by an equity investee of $16.9 million as a result of the per share sales price of this transaction being above our per share carrying value. Our ownership percentage in SIR was reduced to 36.7% as a result of the transaction.

On July 2, 2013, SIR issued and sold to the public 10,500,000 of its common shares for $28.25 per common share. Prior to the completion of this offering, our 22,000,000 common shares of SIR represented approximately 56.0% of SIR's outstanding common shares, and SIR was one of our consolidated subsidiaries. Following the completion of this offering, our 22,000,000 common shares of SIR represented approximately 44.2% of SIR's outstanding common shares and SIR ceased to be our consolidated subsidiary.

Accordingly, after the completion of this offering on July 2, 2013, we no longer consolidated our investment in SIR, but instead accounted for this investment under the equity method. Under the equity method, we recorded our percentage share of net earnings of SIR in our consolidated statements of operations. Prior to July 2, 2013, the operating results and investments of SIR were included in our consolidated results of operations and financial position. On July 2, 2013, our share of the underlying equity of SIR exceeded our carrying value by $17.6 million. As required under GAAP, we amortized this difference to equity in earnings of investees over a 34 year period, which approximates the average remaining useful lives of the buildings owned by SIR as of July 2, 2013. See Notes 1 and 19 for additional information regarding SIR.

For the period from January 1, 2014, through July 9, 2014, we received cash distributions from SIR totaling $20.7 million.

For the period from July 2, 2013, through December 31, 2013, we received cash distributions from SIR totaling $19.8 million.

The following unaudited summarized income statement information of SIR for the period from January 1, 2014, through July 9, 2014, and for the year ended December 31, 2013, is as follows (in thousands, except per share data):



	For the Period from January 1, 2014 through July 9, 2014			Year Ended December 31, 2013
Rental income	98,226			$	159,011
Tenant reimbursements and other income	16,980			29,312
Total revenues	115,206			188,323

Operating expenses	20,982			36,382
Depreciation and amortization	20,832			31,091
Acquisition related costs	374			2,002
General and administrative	7,731			12,423
Total expenses	49,919			81,898
Operating income	65,287			106,425
Interest expense	(7,287		)	(13,763		)
Gain on early extinguishment of debt	243			—
Income before income tax expense and equity in earnings of an investee	58,243			92,662
Income tax expense	(90		)	96
Equity in earnings of an investee	32			334
Net income	$	58,185		$	93,092
Weighted average common shares outstanding	52,394			44,565
Net income per common share	$	1.11		$	2.09

Investment in GOV

On March 15, 2013, we sold all 9,950,000 common shares that we owned of GOV in a public offering for $25.20 per common share, raising gross proceeds of $250.7 million ($239.6 million after deducting underwriters' discounts and commissions and expenses). We recognized a gain on this sale of an equity investment of $66.3 million as a result of the per share sales price of this transaction being above our per share carrying value. GOV was our wholly owned subsidiary until its initial public offering in June 2009 when it became a separate public entity.

During the year ended December 31, 2013, we received cash distributions from GOV totaling $4.3 million. We no longer own any interest in GOV.

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.

Our participation in the AIC property insurance program expired in June 2014. See Note 19 for additional information about our investment in AIC.