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.