REAL ESTATE ACTIVITIES

Investments in real estate as of September 30, 2018 and December 31, 2017 were comprised of the following:



(in thousands of dollars)	As of September 30, 2018			As of December 31, 2017
Buildings, improvements and construction in progress	$	2,839,040		$	2,808,622
Land, including land held for development	472,701			491,080
Total investments in real estate	3,311,741			3,299,702
Accumulated depreciation	(1,169,709		)	(1,111,007		)
Net investments in real estate	$	2,142,032		$	2,188,695

Capitalization of Costs

The following table summarizes our capitalized interest, compensation, including commissions, and real estate taxes for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands of dollars)	2018		2017		2018		2017
Development/Redevelopment Activities:
Interest	$	1,821	$	2,209	$	4,728	$	5,358
Compensation, including commissions	352		362		1,067		1,058
Real estate taxes	430		496		810		651

Leasing Activities:
Compensation, including commissions	1,482		1,536		5,423		4,633

Acquisitions

In June 2018, we purchased certain real estate and related improvements at Valley Mall in Hagerstown, Maryland for $11.4 million.

Dispositions

In October 2018, we sold an outparcel on which two operating restaurants are located at Valley Mall in Hagerstown, Maryland for $2.4 million. We expect to record a gain of approximately $1.0 million on this sale in the fourth quarter of 2018.

In June 2018, we sold an operating restaurant located on an outparcel at Magnolia Mall in Florence, South Carolina for $1.7 million. We recorded a gain of $0.7 million on this sale.

Impairment of Assets

In connection with the preparation of our financial statements as of and for the period ended June 30, 2018, we recorded a loss on impairment of assets on Wyoming Valley Mall, in Wilkes-Barre, Pennsylvania of $32.2 million as we determined that the pending closure of two anchor stores at the property (as further discussed in Note 4) was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon our estimates, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets after determining that the fair value was less than the carrying value. Our fair value analysis was based on discounted estimated future cash flows at the property, using a discount rate of 10.5% and a terminal capitalization rate of 9.0% for Wyoming Valley Mall, which was determined using management’s assessment of property operating performance and general market conditions and were classified in Level 3 of the fair value hierarchy.

In May 2018, we recorded a loss on impairment of assets on a land parcel located in Gainesville, Florida of $2.1 million in connection with negotiations with the potential buyer of the property. In connection with these negotiations, we determined that the expected proceeds from the sale of the property are expected to be less than the carrying amount, which we concluded was a triggering event, leading us to conduct an analysis of possible impairment at this property. Based upon the negotiations, we determined that the estimated undiscounted cash flows, net of capital expenditures for the property, were less than the carrying value of the property, and recorded a loss on impairment of assets. This land parcel is classified as held-for-sale in our consolidated balance sheet.