Marketable Securities

12 Months Ended

Dec. 31, 2018

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

NOTE 4 – MARKETABLE SECURITIES

The Company’s marketable securities primarily consist of common and preferred stock of other REITs. The Company does not own more than 10% of the outstanding shares of any of these securities, nor does it have controlling financial interest. The Company generally limits its investment in marketable securities to no more than approximately 15% of its undepreciated assets. The REIT securities portfolio provides the Company with additional liquidity and additional income and serves as a proxy for real estate when more favorable risk adjusted returns are not available.

The following is a listing of marketable securities at December 31, 2018:

			Interest			Number				Market
	Series		Rate			of Shares		Cost		Value
Equity Securities:
Preferred Stock:
CBL & Associates Properties, Inc.		D		7.375	%		2,000	$	50,269	$	21,160
CBL & Associates Properties, Inc.		E		6.625	%		62,724		1,487,145		599,641
Cedar Realty Trust, Inc.		B		7.250	%		8,111		188,005		187,023
Cedar Realty Trust, Inc.		C		6.500	%		20,000		494,407		379,600
Colony Capital Inc.		I		7.150	%		20,000		500,000		369,000
Investors Real Estate Trust		C		6.625	%		20,000		500,000		461,684
Pennsylvania Real Estate Investment Trust		B		7.375	%		40,000		1,000,000		654,400
Pennsylvania Real Estate Investment Trust		D		6.875	%		20,000		498,207		310,800
Urstadt Biddle Properties, Inc.		G		6.750	%		5,000		125,000		123,750
Urstadt Biddle Properties, Inc.		H		6.250	%		12,500		312,500		292,500
Total Preferred Stock									5,155,533		3,399,558
Common Stock:
CBL & Associates Properties, Inc.							1,600,000		16,692,139		3,072,000
Franklin Street Properties Corporation							220,000		2,219,219		1,370,600
Government Properties Income Trust							2,246,000		36,418,264		15,430,020
Industrial Logistics Properties Trust							502,258		9,951,185		9,879,415
Kimco Realty Corporation							910,000		17,052,180		13,331,500
Monmouth Real Estate Investment Corporation (1)							2,446,054		22,292,408		30,331,065
Pennsylvania Real Estate Investment Trust							210,000		2,226,089		1,247,400
Senior Housing Properties Trust							170,911		2,919,572		2,003,078
Tanger Factory Outlet							180,000		4,228,627		3,639,600
Urstadt Biddle Properties, Inc.							100,000		2,048,516		1,922,000
Vereit, Inc.							1,410,000		12,058,590		10,081,500
Washington Prime Group							800,000		6,489,228		3,888,000
Total Common Stock									134,596,017		96,196,178
Total Marketable Securities								$	139,751,550	$	99,595,736

(1) Related entity – See Note 8.

The following is a listing of marketable securities at December 31, 2017:

			Interest			Number				Market
	Series		Rate			of Shares		Cost		Value
Equity Securities:
Preferred Stock:
CBL & Associates Properties, Inc.		D		7.375	%		2,000	$	50,269	$	43,720
CBL & Associates Properties, Inc.		E		6.625	%		62,724		1,487,145		1,383,064
Cedar Realty Trust, Inc.		B		7.250	%		18,269		422,544		458,755
Cedar Realty Trust, Inc.		C		6.500	%		20,000		494,407		500,800
Colony Northstar, Inc.		I		7.150	%		20,000		500,000		503,600
Investors Real Estate Trust		C		6.625	%		20,000		500,000		520,308
Pennsylvania Real Estate Investment Trust		B		7.375	%		40,000		1,000,000		1,007,200
Pennsylvania Real Estate Investment Trust		D		6.875	%		20,000		498,207		502,200
Urstadt Biddle Properties, Inc.		G		6.750	%		5,000		125,000		131,000
Urstadt Biddle Properties, Inc.		H		6.250	%		12,500		312,500		326,875
Total Preferred Stock									5,390,072		5,377,522
Common Stock:
CBL & Associates Properties, Inc.							1,500,000		16,157,749		8,490,000
Franklin Street Properties Corporation							150,000		1,659,118		1,611,000
Government Properties Income Trust							1,020,000		19,430,983		18,910,800
Kimco Realty Corporation							750,000		14,475,908		13,612,500
Monmouth Real Estate Investment Corporation (1)							2,335,930		20,698,562		41,579,558
Pennsylvania Real Estate Investment Trust							150,000		1,602,636		1,783,500
Select Income Real Estate Investment Trust							775,000		18,649,691		19,475,750
Senior Housing Properties Trust							160,911		2,739,069		3,081,446
Tanger Factory Outlet							120,000		2,941,621		3,181,200
Urstadt Biddle Properties, Inc.							100,000		2,048,516		2,174,000
Vereit, Inc.							1,300,000		11,253,514		10,127,000
Washington Prime Group							500,000		4,397,255		3,560,000
Total Common Stock									116,054,622		127,586,754
Total Marketable Securities								$	121,444,694	$	132,964,276

(1) Related entity – See Note 8.

On January 1, 2018, the Company adopted ASU 2016-01, which requires changes in the fair value of our marketable securities to be recorded in current period earnings. Previously, changes in the fair value of marketable securities were recognized in “Accumulated Other Comprehensive Income” on our Consolidated Balance Sheets. As a result, on January 1, 2018 the Company recorded an increase to beginning undistributed income (accumulated deficit) of $11,519,582 to recognize the unrealized gains previously recorded in “Accumulated Other Comprehensive Income” on our Consolidated Balance Sheets. Subsequent changes in the fair value of the Company’s marketable securities is recorded in “Other Investment Income (Loss), net” on our Consolidated Statements of Income (Loss).

The Company normally holds REIT securities long term and has the ability and intent to hold securities to recovery. As of December 31, 2018, 2017 and 2016, the securities portfolio had net unrealized holding gains (losses) of $(40,155,814), $11,519,582 and $16,717,171, respectively.

During the years ended December 31, 2018, 2017 and 2016, the Company received proceeds of $268,675, $17,416,146 and $14,831,737, on sales or redemptions of marketable securities, respectively. The Company recorded the following Gain (Loss) on Sale of Securities, net:

	2018		2017			2016
Gross realized gains	$	20,107	$	1,749,034		$	2,287,454
Gross realized losses		-0-		(1,506	)		(2,153	)
Total Gain on Sales of Marketable Securities, net	$	20,107	$	1,747,528		$	2,285,301

The Company had margin loan balances of $31,975,086 and $37,157,467 at December 31, 2018 and 2017, respectively, which were collateralized by the Company’s securities portfolio.