Equity Investments

At December 31, 2016, and 2015, we did not have any ownership interests in equity investments. For the year ended December 31, 2014, equity in earnings is as follows (in thousands):



	Year Ended December 31,
	2014
SIR	$	24,516
AIC	(56		)
	$	24,460

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. Under the equity method, we recorded our percentage share of net earnings of SIR in our consolidated statements of operations. 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. As a result of this sale, we no longer hold any interest in SIR. See Note 18 for additional information about our investment in AIC.

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.

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

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



	For the Period from January 1, 2014 through July 9, 2014
Rental income	$	98,226
Tenant reimbursements and other income	16,980
Total revenues	115,206

Operating expenses	20,982
Depreciation and amortization	20,832
Acquisition related costs	374
General and administrative	7,731
Total expenses	49,919
Operating income	65,287
Interest expense	(7,287		)
Gain on early extinguishment of debt	243
Income before income tax expense and equity in earnings of an investee	58,243
Income tax expense	(90		)
Equity in earnings of an investee	32
Net income	$	58,185
Weighted average common shares outstanding	52,394
Net income per common share	$	1.11

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 18 for additional information about our investment in AIC.