MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2022

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, 2022 (in thousands):

			Interest			Number				Market
	Series		Rate			of Shares		Cost		Value
Equity Securities:
Preferred Stock:
Cedar Realty Trust, Inc.		B		7.250	%		12	$	257	$	168
Cedar Realty Trust, Inc.		C		6.500	%		20		494		235
Centerspace		C		6.625	%		20		500		505
Pennsylvania Real Estate Investment Trust		B		7.375	%		40		1,000		97
Pennsylvania Real Estate Investment Trust		D		6.875	%		20		498		38
Total Preferred Stock									2,749		1,043
Common Stock:
Alerislife Inc.							12		45		6
Diversified HealthCare Trust							171		2,920		111
Franklin Street Properties Corporation							220		2,219		601
Industrial Logistics Properties Trust							87		1,729		285
Kimco Realty Corporation							890		16,677		18,850
Office Properties Income Trust							562		36,418		7,496
Orion Office REIT, Inc.							18		293		158
Pennsylvania Real Estate Investment Trust							15		2,316		17
Realty Income Corporation							185		10,910		11,716
Urstadt Biddle Properties, Inc.							100		2,049		1,895
Total Common Stock									75,576		41,135
Total Marketable Securities								$	78,325	$	42,178

The following is a listing of marketable securities at December 31, 2021 (in thousands):

			Interest			Number				Market
	Series		Rate			of Shares		Cost		Value
Equity Securities:
Preferred Stock:
Cedar Realty Trust, Inc.		B		7.250	%		10	$	237	$	264
Cedar Realty Trust, Inc.		C		6.500	%		20		494		505
Centerspace		C		6.625	%		20		500		522
Pennsylvania Real Estate Investment Trust		B		7.375	%		40		1,000		304
Pennsylvania Real Estate Investment Trust		D		6.875	%		20		498		145
Total Preferred Stock									2,729		1,740
Common Stock:
CBL & Associates Properties, Inc.							12		18,230		361
Five Star Senior Living							12		45		34
Franklin Street Properties Corporation							220		2,219		1,309
Industrial Logistics Properties Trust							87		1,729		2,186
Kimco Realty Corporation							890		16,677		21,939
Monmouth Real Estate Investment Corporation							2,655		25,031		55,778
Office Properties Income Trust							562		36,418		13,948
Orion Office REIT, Inc.							18		293		345
Pennsylvania Real Estate Investment Trust							222		2,316		226
Diversified HealthCare Trust							171		2,920		528
Urstadt Biddle Properties, Inc.							100		2,049		2,130
Realty Income Corporation							185		10,910		13,224
Washington Prime Group							3		6,489		0
Total Common Stock									125,326		112,008
Total Marketable Securities								$	128,055	$	113,748

As of December 31, 2021, the Company’s securities portfolio included 2.7 million shares of common stock of Monmouth Real Estate Investment Corporation (“MREIC”), representing 2.7% of the total MREIC shares outstanding. The Company’s Chairman of the Board was also the Chairman of MREIC and there were three other Company Directors who were also directors and shareholders of MREIC. In February 2022, MREIC was acquired by a third party pursuant to an all-cash merger approved by the shareholders of MREIC, which resulted in the Company and MREIC’s other shareholders receiving a cash payment of $21.00 per share in cancellation of their MREIC common shares. The merger consideration received by the Company on February 28, 2022 for its 2.7 million shares of MREIC common stock totaled approximately $55.7 million. These shares had been acquired by the Company at a cost of approximately $25 million, which resulted in a gain of approximately $30.7 million. The Company also sold other securities in its portfolio with a total cost of $24.7 million at a loss of $24.3 million. As of December 31, 2022, 2021 and 2020, the securities portfolio had net unrealized holding losses of $36.1 million, $14.3 million and $39.4 million, respectively.