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MARKETABLE SECURITIES
 12 Months Ended
Dec. 31, 2020
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, 2020 (in thousands):

 

       Interest   Number       Market 
   Series   Rate   of Shares   Cost   Value 
                     
Equity Securities:                         
Preferred Stock:                         
CBL & Associates Properties, Inc.   D    7.375%   2   $50   $2 
CBL & Associates Properties, Inc.   E    6.625%   63    1,487    50 
Cedar Realty Trust, Inc.   B    7.250%   10    219    206 
Cedar Realty Trust, Inc.   C    6.500%   20    494    428 
Colony Capital Inc.   I    7.150%   20    500    472 
Investors Real Estate Trust   C    6.625%   20    500    520 
Pennsylvania Real Estate Investment Trust   B    7.375%   40    1,000    404 
Pennsylvania Real Estate Investment Trust   D    6.875%   20    498    206 
Urstadt Biddle Properties, Inc.   H    6.250%   13    313    313 
Total Preferred Stock                  5,061    2,601 
                          
Common Stock:                         
CBL & Associates Properties, Inc.             1,600    16,692    66 
Diversified Healthcare Trust             171    

2,920

    704 
Five Star Senior Living             12    45    80 
Franklin Street Properties Corporation             220    2,219    961 
Industrial Logistics Properties Trust             502    9,951    11,698 
Kimco Realty Corporation             910    17,052    13,659 
Monmouth Real Estate Investment Corporation (1)             2,655    25,031    45,982 
Office Properties Income Trust             562    

36,418

    

12,757

 
Pennsylvania Real Estate Investment Trust             222    2,316    222 
Tanger Factory Outlet             180    4,229    1,793 
Urstadt Biddle Properties, Inc.             100    2,049    1,413 
Vereit, Inc.             282    12,059    10,657 
Washington Prime Group             89    6,489    579 
Total Common Stock                  137,470    100,571 
                          
Total Marketable Securities                 $142,531   $103,172 

 

(1) Related entity – See Note 8.

 

 

The following is a listing of marketable securities at December 31, 2019 (in thousands):

 

       Interest   Number       Market 
   Series   Rate   of Shares   Cost   Value 
                     
Equity Securities:                         
Preferred Stock:                         
CBL & Associates Properties, Inc.   D    7.375%   2   $50   $10 
CBL & Associates Properties, Inc.   E    6.625%   63    1,487    294 
Cedar Realty Trust, Inc.   B    7.250%   9    203    219 
Cedar Realty Trust, Inc.   C    6.500%   20    494    464 
Colony Capital Inc.   I    7.150%   20    500    483 
Investors Real Estate Trust   C    6.625%   20    500    525 
Pennsylvania Real Estate Investment Trust   B    7.375%   40    1,000    802 
Pennsylvania Real Estate Investment Trust   D    6.875%   20    498    386 
Urstadt Biddle Properties, Inc.   H    6.250%   13    313    333 
Total Preferred Stock                  5,045    3,516 
                          
Common Stock:                         
CBL & Associates Properties, Inc.             1,600    16,692    1,680 
Diversified Healthcare Trust             171    

2,920

    

1,443

 
Franklin Street Properties Corporation             220    2,219    1,883 
Industrial Logistics Properties Trust             502    9,951    11,261 
Kimco Realty Corporation             910    17,052    18,846 
Monmouth Real Estate Investment Corporation (1)             2,573    23,987    37,251 
Office Properties Income Trust             562    

36,418

    

18,047

 
Pennsylvania Real Estate Investment Trust             222    2,316    1,183 
Tanger Factory Outlet             180    4,229    2,651 
Urstadt Biddle Properties, Inc.             100    2,049    2,484 
Vereit, Inc.             1,410    12,059    13,029 
Washington Prime Group             800    6,489    2,912 
Total Common Stock                  136,381    112,670 
                          
Total Marketable Securities                 $141,426   $116,186 

 

(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 $11.5 million 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 are recorded in Increase (Decrease) in Fair Value of Marketable Securities 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, 2020, 2019 and 2018, the securities portfolio had net unrealized holding losses of $39.4 million, $25.2 million and $40.2 million, respectively.

 

 

The Company had margin loan balances of $17.6 million and $37.5 million at December 31, 2020 and 2019, respectively, which were collateralized by the Company’s securities portfolio.