Investment in Marketable Securities

3 Months Ended

Mar. 31, 2016

Investments, All Other Investments [Abstract]

Investment in Marketable Securities

Investment in Marketable Securities

Investment in marketable securities of $181,138 and $177,431 at March 31, 2016 and December 31, 2015, respectively, consists primarily of preferred and common stock investments in other REITs and certain real estate related bonds which are classified as available-for-sale securities and recorded at fair value. The cost basis net of impairments of available-for-sale securities was $137,367 and $138,318 as of March 31, 2016 and December 31, 2015, respectively. The Company's investment in marketable securities includes an approximately 5% ownership of the outstanding common stock of Xenia. The Company held an investment in Xenia securities reported at its fair value of $88,564 and $86,919 as of March 31, 2016 and December 31, 2015, respectively. The cost basis of the Xenia securities held by the Company was $80,748 as of March 31, 2016 and December 31, 2015, which is equal to 5% of the net equity, at historical cost basis, contributed to Xenia at the time of the Xenia spin-off.

Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported as a separate component of comprehensive income until realized. The Company has net accumulated other comprehensive income related to its marketable securities portfolio of $43,771 and $39,113, which includes gross unrealized losses of $1,647 and $2,242 related to its marketable securities as of March 31, 2016 and December 31, 2015, respectively. Securities with gross unrealized losses have a related fair value of $6,477 and $10,712 as of March 31, 2016 and December 31, 2015, respectively. The unrealized gain on the Xenia securities held by the Company was $7,816 and $6,171 as of March 31, 2016 and December 31, 2015, respectively.

The Company’s policy for assessing recoverability of its available-for-sale securities is to record a charge against net earnings when the Company determines that a decline in the fair value of a security drops below the cost basis and believes that decline to be other-than-temporary. Factors in the assessment of other-than-temporary impairment include determining whether (1) the Company has the ability and intent to hold the security until it recovers, and (2) the length of time and degree to which the security’s price has declined. No impairment to available-for-sale securities was recorded for the three months endedMarch 31, 2016 and 2015.

During the three months endedMarch 31, 2016 and 2015, dividend income of $2,655 and $2,899, respectively, was recognized and is included in interest and dividend income on the consolidated statements of operations and comprehensive income.