16. Other Income (Expense)

Other income (expense) consists of the following:


	Three Months Ended
	March 31,
	2019		2018
Investment income, net
Interest and dividend income	$	1,813	$	2,880
Accretion income		61		221
Net realized loss on the sale of investments		(2)		(1,078)
Other-than-temporary impairment loss		—		(63)
Unrealized gain (loss) on investments, net		2,049		(538)
Interest income from investments in SPEs		2,049		2,050
Interest accrued on notes receivable and other interest		76		193
Total investment income, net		6,046		3,665
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(2,199)		(2,196)
Other interest expense		(743)		(829)
Total interest expense		(2,942)		(3,025)
Other income (expense), net
Gain on land contribution		1,472		—
Accretion income from retained interest investments		320		290
Insurance proceeds		279		—
Hurricane expense		(322)		—
Miscellaneous expense, net		(51)		(13)
Other income, net		1,698		277
Total other income, net	$	4,802	$	917

Investment Income, Net

Interest and dividend income includes interest income accrued or received on the Company’s corporate debt securities, commercial paper and money market funds, and dividend income received from the Company’s investment in preferred stock. Accretion income includes the amortization of the premium or accretion of discount related to the Company’s available-for-sale securities, which is amortized based on an effective interest rate method over the term of the available-for-sale securities. Net realized loss on the sale of investments include the gains or losses recognized on the sale of available-for-sale securities prior to maturity. Other-than-temporary impairment loss includes impairments related to the Company’s corporate debt securities for the three months ended March 31, 2018. Unrealized gain (loss) on investments, net includes unrealized gains or losses on investments - equity securities.

Interest income from investments in SPEs primarily includes interest earned on the investments held by Panama City Timber Finance Company, LLC, which is used to pay the interest expense for Senior Notes held by Northwest Florida Timber Finance, LLC.

Interest Expense

Interest expense includes interest expense related to the Company’s CDD debt, PPN JV Loan, Pier Park Outparcel Construction Loan, WaterColor Crossings Construction Loan and finance leases. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by Northwest Florida Timber Finance, LLC, are amortized based on the effective interest method at an effective rate of 4.9%.

Other Income, Net

Other income, net primarily includes gain on land contribution, income from the Company’s retained interest investments, insurance proceeds, hurricane expenses and other income and expense items. The three months ended March 31, 2019, include a gain of $1.5 million on land contributed to our unconsolidated Pier Park TPS JV. See Note 9, Real Estate Joint Ventures for additional information. During the three months ended March 31, 2019, the Company received $0.3 million of insurance proceeds and incurred $0.3 million of hurricane expenses related to Hurricane Michael. See Note 6. Hurricane Michael for additional information. These amounts were included in other income, net in the condensed consolidated statements of income.

The Company records the accretion of investment income from its retained interest investment over the life of the retained interest using the effective yield method with rates ranging from 3.7% to 11.9%.