Investment in Marketable Securities

6 Months Ended

Jun. 30, 2017

Investments, All Other Investments [Abstract]

Investment in Marketable Securities

Investment in Marketable Securities

Investment in marketable securities of $31,542 and $183,883 at June 30, 2017 and December 31, 2016, 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 $21,503 and $125,311 as of June 30, 2017 and December 31, 2016, respectively. The Company recognized net proceeds from sales of marketable securities of $136,696 during the six months ended June 30, 2017.

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 comprehensive income related to its marketable securities portfolio of $10,039 and $58,572, which includes gross unrealized losses of $36 and $598 related to its marketable securities as of June 30, 2017 and December 31, 2016, respectively. Securities with gross unrealized losses have a related fair value of $0 and $1,204 as of June 30, 2017 and December 31, 2016, 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 expects the value of the security to recover, (2) the Company has the ability and intent to hold the security until it recovers, and (3) the length of time and degree to which the security’s price has declined. The Company recorded no impairment on available-for-sale securities for the three and six months endedJune 30, 2017 and 2016.

Dividend income is recognized when earned. During the three and six months endedJune 30, 2017, dividend income of $389 and $2,232, respectively, was recognized and is included as part of continuing operations in interest and dividend income on the consolidated statements of operations and comprehensive income (loss). During the three and six months endedJune 30, 2016, $2,645 and $5,300, respectively, was recognized and is included as part of continuing operations in interest and dividend income on the consolidated statements of operations and comprehensive income (loss).