Note 6 - Marketable Securities

3 Months Ended

Mar. 31, 2023

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

6. Marketable Securities

The amortized cost and unrealized gains, net of marketable securities as of March 31, 2023 and December 31, 2022, are as follows (in thousands):

	As of March 31, 2023		As of December 31, 2022
Marketable securities:
Amortized cost	$	70,290	$	87,411
Unrealized gains, net		381,293		510,321
Total fair value	$	451,583	$	597,732

During the three months ended March 31, 2023 and 2022, the Company recognized net unrealized losses on marketable securities of $10.1 million and net unrealized gains on marketable securities of $121.8 million, respectively. These net unrealized gains and losses are included in (Loss)/gain on marketable securities, net on the Company’s Condensed Consolidated Statements of Income.

During the three months ended March 31, 2023, the Company received $194.1 million representing its share of the ACI special dividend payment and recognized this as Special dividend income on the Company’s Condensed Consolidated Statements of Income. As a result, the Company anticipates it may need to make a special dividend payment to maintain its compliance with REIT distribution requirements. The payment of this special dividend may be in the form of cash, common stock or some combination thereof. The Company’s determination regarding any such special dividend and the form thereof will be announced during the year ended December 31, 2023.

Also during the three months ended March 31, 2023, the Company sold 7.1 million shares of Albertsons Companies Inc. (“ACI”) held by the Company, generating net proceeds of $137.4 million. For tax purposes, the Company recognized a long-term capital gain of $115.4 million.  The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will pay federal and state taxes of $30.0 million on the taxable gain. As of March 31, 2023, the Company held 21.2 million shares of ACI, which had a value of $440.8 million.

In April 2023, the Company sold an additional 7.0 million shares of ACI held by the Company, generating net proceeds of $144.9 million. For tax purposes, the Company will recognize a long-term capital gain of $125.9 million during the three months ended June 30, 2023.  The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will pay estimated corporate taxes of $32.7 million on the taxable gain.