Real Estate Activities

3 Months Ended

Mar. 31, 2020

Real Estate [Abstract]

Real Estate Activities

2. REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2020 and December 31, 2019 were comprised of the following:

(in thousands of dollars)	March 31, 2020			December 31, 2019
Buildings, improvements and construction in progress	$	2,761,543		$	2,753,039
Land, including land held for development		466,116			457,887
Total investments in real estate		3,227,659			3,210,926
Accumulated depreciation		(1,230,657	)		(1,202,722	)
Net investments in real estate	$	1,997,002		$	2,008,204

Capitalization of Costs

The following table summarizes our capitalized interest, compensation, including commissions, and real estate taxes for the three months ended March 31, 2020 and 2019:

	Three Months Ended March 31,
(in thousands of dollars)	2020		2019
Development/Redevelopment Activities:
Interest (1)	$	910	$	2,004
Compensation		344		352
Real estate taxes		197		76
Leasing Activities:
Compensation, including commissions (2)		164		320

⁽¹⁾ Includes interest capitalized on investments in partnerships under development.

⁽²⁾ The definition of initial direct costs under ASC 842 includes only those incremental costs of a lease that would not have been incurred if the lease had not been obtained. Commissions paid for successful leasing transactions continue to be capitalized.

Dispositions

In November 2019, we entered into an agreement to sell 14 tenant occupied parcels across five properties — Magnolia Mall, Capital City Mall, Woodland Mall, Jacksonville Mall and Valley Mall — for total consideration of $29.9 million. As of December 31, 2019, we completed the dispositions on three outparcels at Capital City Mall and Magnolia Mall for total consideration of $5.2 million. In connection with these sales, we recorded a gain of $2.7 million. In January 2020, the sale of the outparcel at Woodland Mall for a total consideration of $5.1 million was completed and in March 2020, the sale of two outparcels at Magnolia Mall for a total consideration of $2.9 million was completed with a resulting gain on sale of $1.9 million which was recorded in March 2020.

In March 2019, we entered into an agreement of sale with a buyer to sell an undeveloped land parcel located in Gainesville, Florida for total consideration of $15.0 million and the sale transaction was split into four parcels. The first parcel was sold in March 2019 for $5.0 million. As a result of executing the agreement of sale, we recorded losses on impairment of assets of $1.5 million in the first quarter of 2019. Subsequently, we closed on the sale of two parcels in November 2019 and the sale of the final parcel closed in December 2019 for aggregate consideration of $10.0 million.