INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2023

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE 7. INVESTMENT SECURITIES

As of September 30, 2023, the Company owns, in the aggregate and on a fully diluted basis, 2.33 million shares of PINE, or 15.1% of PINE’s total shares outstanding for an investment value of $38.2 million, which total includes 1.2 million OP Units, or 7.9%, which the Company received in exchange for the contribution of certain income properties to the PINE Operating Partnership, in addition to 1,108,814 shares of common stock owned by the Company, or 7.2%. The Company has elected the fair value option related to the aggregate investment in securities of PINE pursuant to ASC 825, otherwise such investments would have been accounted for under the equity method. For detailed financial information

regarding PINE, please refer to its financial statements, which are publicly available on the website of the Securities and Exchange Commission at http://www.sec.gov under the ticker symbol “PINE.”

The Company calculates the unrealized gain or loss based on the closing stock price of PINE at each respective balance sheet date. The unrealized, non-cash gains and losses resulting from the changes in the closing stock price of PINE are included in investment and other loss in the accompanying consolidated statements of operations.

The Company’s available-for-sale securities as of September 30, 2023 and December 31, 2022 are summarized below (in thousands):

	Cost		Unrealized Gains in Investment Income		Unrealized Losses in Investment Income		Estimated Fair Value (Level 1 Inputs)
September 30, 2023
Common Stock	$	20,482	$	—	$	(2,342)	$	18,140
Operating Units		23,253		—		(3,231)		20,022
Total Equity Securities		43,735		—		(5,573)		38,162
Total Available-for-Sale Securities	$	43,735	$	—	$	(5,573)	$	38,162
December 31, 2022
Common Stock	$	18,382	$	308	$	—	$	18,690
Operating Units		23,253		98		—		23,351
Total Equity Securities		41,635		406		—		42,041
Total Available-for-Sale Securities	$	41,635	$	406	$	—	$	42,041