INVESTMENTS IN MARKETABLE SECURITIES

12 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities

3. INVESTMENTS IN MARKETABLE SECURITIES

Investments in marketable securities consist primarily of large capital corporate equity and debt securities in varying industries or issued by government agencies with readily determinable fair values. These securities are stated at market value, as determined by the most recent traded price of each security at the balance sheet date. All unrealized gains (losses) on this portfolio are recorded in income. Included in investments in marketable securities is approximately $1.66 million and $1.86 million of preferred stock in large capital real estate investment trusts (REITs) as of December 31, 2020 and 2019, respectively.

For the years ended December 31, 2020 and 2019, net unrealized gains (losses) on marketable securities were approximately $93,000 and $236,000, respectively.

	December 31, 2020							December 31, 2019
Description	Cost Basis		Fair Value		Unrealized Gain (loss)			Cost Basis		Fair Value		Unrealized   Gain (loss)
Real Estate Investment Trusts	$	1,744,000	$	1,664,000	($	80,000	)	$	1,800,000	$	1,860,000	$	60,000
Mutual Funds, ETF & other		210,000		316,000		106,000			221,000		257,000		36,000
Other Equity Securities		685,000		813,000		128,000			885,000		883,000		(2,000	)
Total Equity Securities		2,639,000		2,793,000		154,000			2,906,000		3,000,000		94,000
Debt Securities		584,000		613,000		29,000			477,000		474,000		(3,000	)
Total	$	3,223,000	$	3,406,000	$	183,000		$	3,383,000	$	3,474,000	$	91,000

As of December 31, 2020, debt securities are scheduled to mature as follows:

	Cost		Fair Value
2021 – 2025	$	156,000	$	160,000
2026 – 2030		202,000		221,000
2031 – thereafter		226,000		232,000
	$	584,000	$	613,000

Net (loss) gain from investments in marketable securities for the years ended December 31, 2020 and 2019 is summarized below:

Description	2020			2019
Net realized (losses) gains from sales of marketable securities	$	(115,000	)	$	42,000
Net unrealized gains from marketable securities		93,000			236,000
Total net (losses) gains from investments in marketable securities	$	(22,000	)	$	278,000

Net realized loss from sales of marketable securities consisted of approximately $176,000 of losses net of $61,000 of gains for the year ended December 31, 2020. The comparable amounts in fiscal year 2019 were approximately $108,000 of gains net of $66,000 of losses.

Unrealized gains or losses of marketable securities on hand are recorded in income.

Investment gains and losses on marketable securities may fluctuate significantly from period to period in the future and could have a significant impact on the Company’s net earnings. However, the amount of investment gains or losses on marketable securities for any given period has no predictive value and variations in amount from period to period have no practical analytical value.

Investments in marketable securities give rise to exposure resulting from the volatility of capital markets. The Company attempts to mitigate its risk by diversifying its marketable securities portfolio.