Investment in Marketable Securities

9 Months Ended

Sep. 30, 2014

Investments, All Other Investments [Abstract]

Investment in Marketable Securities

Investment in marketable securities of $139,158 and $242,819 at September 30, 2014 and December 31, 2013, respectively, consists primarily of preferred and common stock investments in other REITs and certain real estate related bonds which are classified as available-for-sale securities and recorded at fair value. The cost basis net of impairments of available-for-sale securities was $97,279 and $171,450 as of September 30, 2014 and December 31, 2013, respectively.

Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported as a separate component of comprehensive income until realized. The Company has net accumulated other comprehensive income related to its marketable securities portfolio of $41,879 and $71,369, which includes gross unrealized losses of $1,769 and $3,189 related to its marketable securities as of September 30, 2014 and December 31, 2013, respectively. Securities with gross unrealized losses have a related fair value of $11,982 and $23,394 as of September 30, 2014 and December 31, 2013, respectively.

The Company’s policy for assessing recoverability of its available-for-sale securities is to record a charge against net earnings when the Company determines that a decline in the fair value of a security drops below the cost basis and believes that decline to be other-than-temporary. Factors in the assessment of other-than-temporary impairment include determining whether (1) the Company has the ability and intent to hold the security until it recovers, and (2) the length of time and degree to which the security’s price has declined. No impairment to available-for-sale securities was recorded for the three and nine months endedSeptember 30, 2014 and 2013.

Dividend income is recognized when earned. During the three months ended September 30, 2014 and 2013, dividend income of $2,193 and $3,990, respectively, was recognized and is included in interest and dividend income on the consolidated statements of operations and comprehensive income. During the nine months endedSeptember 30, 2014 and 2013, dividend income of $9,581 and $12,813, respectively, was recognized and is included in interest and dividend income on the consolidated statements of operations and comprehensive income.