Real Estate Activities

3 Months Ended

Mar. 31, 2021

Real Estate [Abstract]

Real Estate Activities

2. REAL ESTATE ACTIVITIES

Investments in real estate as of March 31, 2021 and December 31, 2020 were comprised of the following:

(in thousands of dollars)	March 31, 2021			December 31, 2020
Buildings, improvements and construction in progress	$	2,760,021		$	2,757,234
Land, including land held for development		463,132			463,103
Total investments in real estate		3,223,153			3,220,337
Accumulated depreciation		(1,336,228	)		(1,308,427	)
Net investments in real estate	$	1,886,925		$	1,911,910

Capitalization of Costs

The following table summarizes our capitalized interest, compensation, including commissions, and real estate taxes for the three months ended March 31, 2021 and 2020:

	Three Months Ended March 31,
(in thousands of dollars)	2021		2020
Development/Redevelopment Activities:
Interest (1)	$	130	$	910
Compensation		37		344
Real estate taxes		29		197
Leasing Activities:
Compensation, including commissions (2)		—		164

⁽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

Valley View Mall Derecognition

In August 2020, a court order assigned a receiver to operate Valley View Mall in La Crosse, Wisconsin on behalf of the lender of the mortgage loan secured by the property. Although we have not yet conveyed the property because foreclosure proceedings are ongoing, we no longer

control or operate the property as a result of court order assigning the receiver. In September 2020, a court order was issued to conduct a foreclosure sale of the property and as a result we have no further operating liabilities from the property. As a result of our loss of control of the property, we derecognized the property and recorded an offsetting contract asset and recognized a gain on derecognition of property of $8.1 million in the consolidated statement of operations for the year ended December 31, 2020. The contract asset is included in deferred costs and other assets, net in the consolidated balance sheets as of March 31, 2021 and December 31, 2020. The mortgage principal balance was $27.2 million at March 31, 2021 and December 31, 2020, which we will continue to recognize until the foreclosure process is completed. The derecognition of Valley View Mall and its related assets was a non-cash conversion of assets, which had no impact on the Company’s cash flows.