20. Other Income (Expense)

Other income (expense) consists of the following:



	Year Ended December 31,
	2019		2018		2017
Investment income, net
Interest and dividend income	$	7,375	$	9,060	$	16,380
Accretion income		84		684		1,983
Net realized gain (loss) on the sale of investments		87		(973)		10,750
Other-than-temporary impairment loss		—		(2,330)		(2,288)
Unrealized loss on investments, net		(5,342)		(3,035)		—
Interest income from investments in SPEs		8,190		8,197		8,201
Interest accrued on notes receivable and other interest		320		547		384
Total investment income, net		10,714		12,150		35,410
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(8,801)		(8,788)		(8,777)
Other interest expense		(3,501)		(3,052)		(3,368)
Total interest expense		(12,302)		(11,840)		(12,145)
Sale of vacation rental management, net		—		—		9,800
Other income (expense), net
Gain on land contribution to equity method investment		2,317		—		—
Accretion income from retained interest investments		1,325		1,232		1,100
Gain on insurance recovery		5,314		7,199		—
Loss from hurricane damage		(2,704)		(8,628)		—
Miscellaneous income, net		198		1,349		3,613
Other income, net		6,450		1,152		4,713
Total other income, net	$	4,862	$	1,462	$	37,778

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 gain (loss) on the sale of investments include the gains or losses recognized on the sale of available-for-sale and equity securities prior to maturity. Other-than-temporary impairment loss includes impairments related to the Company’s corporate debt securities for the year ended December 31, 2018 and impairments related to the Company’s corporate debt securities and preferred stock investments for the year ended December 31, 2017.

Unrealized loss on investments, net includes unrealized gains or losses on investments – equity securities. Prior to 2018, unrealized gains or losses related to these investments were recorded in accumulated other comprehensive loss.

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 incurred related to the Company’s CDD debt, Senior Notes issued by Northwest Florida Timber Finance, LLC, project financing 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%.

During 2019, 2018 and 2017 the Company capitalized $0.6 million, $0.2 million and less than $0.1 million, respectively, in interest related to projects under development. These amounts are included within investment in real estate, net on the Company’s consolidated balance sheets.

Sale of Vacation Rental Management, Net

Sale of vacation rental management, net includes a gain of $9.8 million from the PCR Rentals Sale in December 2017. See Note 8. Sale of Vacation Rental Management for further discussion.

Other Income, Net

Other income, net primarily includes gain on land contributions, income from the Company’s retained interest investments, gain on insurance recovery, loss from hurricane damage and other income and expense items.

Gain on land contribution to equity method investment for the year ended December 31, 2019 includes a gain of $0.8 million on land contributed to the Company’s unconsolidated Busy Bee JV and a gain of $1.5 million on land contributed to the Company’s unconsolidated Pier Park TPS JV. See Note 4. Real Estate Joint Ventures for additional information.

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 11.8%

During the year ended December 31, 2019 the company had a $5.3 million gain on insurance recovery and incurred $2.7 million of loss from hurricane damage related to Hurricane Michael. The year ended December 31, 2018 includes a $7.2 million gain on insurance recovery and $8.6 million of loss from hurricane damage, which includes $7.3 million for loss on disposal of assets related to damage and $1.3 million of expenses related to Hurricane Michael. See Note 7. Hurricane Michael for additional information.

Miscellaneous income, net for the year ended December 31, 2018 primarily consists of $2.2 million of income related to the final distribution from the Company’s unconsolidated JV ALP, offset by $0.6 million for a homeowners’ association settlement related to one of the Company’s residential communities. Miscellaneous income, net for the year ended December 31, 2017, includes an insurance settlement negotiated by the Company that resulted in proceeds of $3.5 million for reimbursement of certain attorney fees and related costs incurred by the Company.