16. Other (Expense) Income, Net

Other (expense) income, net consists of the following:


	Three Months Ended
	March 31,
	2020		2019
Investment income (loss), net
Interest and dividend income	$	1,043	$	1,813
Accretion income		17		61
Net realized loss on the sale of investments		(48)		(2)
Unrealized (loss) gain on investments, net		(4,761)		2,049
Interest income from investments in SPEs		2,046		2,049
Interest accrued on notes receivable and other interest		94		76
Total investment (loss) income, net		(1,609)		6,046
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(2,202)		(2,199)
Other interest expense		(1,143)		(743)
Total interest expense		(3,345)		(2,942)
Other income (expense), net
Gain on land contribution to equity method investment		4,277		1,472
Accretion income from retained interest investments		344		320
Gain on insurance recovery		—		279
Loss from hurricane damage		(55)		(322)
Miscellaneous expense, net		(34)		(51)
Other income, net		4,532		1,698
Total other (expense) income, net	$	(422)	$	4,802

Investment (Loss) Income, Net

Interest and dividend income includes interest income accrued or received on the Company’s U. S. Treasury Bills, corporate debt securities, commercial paper and money market funds, and dividend income received from the Company’s investments 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 and equity securities prior to maturity. Unrealized (loss) gain 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 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 the three months ended March 31, 2020 and 2019 the Company capitalized $0.1 million and $0.2 million, respectively, in interest related to projects under development. These amounts are included within investment in real estate, net on the Company’s condensed consolidated balance sheets.

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.

The three months ended March 31, 2020 include a gain of $4.3 million on land and mitigation credits contributed to the Company’s unconsolidated Sea Sound Apartments JV. The three months ended March 31, 2019, include 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 11.3%.

During the three months ended March 31, 2020, the Company did not have any gain on insurance recovery and incurred $0.1 million of loss from hurricane damage related to Hurricane Michael. During the three months ended March 31, 2019, the Company had a $0.3 million gain on insurance recovery and incurred $0.3 million of loss from hurricane damage related to Hurricane Michael See Note 7. Hurricane Michael for additional information.