Note 7 - Marketable Securities

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

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

7. Marketable Securities

The amortized cost and unrealized gains, net of marketable securities as of March 31, 2024 and December 31, 2023, were as follows (in thousands):

	As of March 31, 2024		As of December 31, 2023
Marketable securities:
Amortized cost	$	2,702	$	40,110
Unrealized gains, net		35		289,947
Total fair value	$	2,737	$	330,057

The Company’s net gains/(losses) on marketable securities and dividend income for the three months ended March 31, 2024 and 2023, were as follows (in thousands):

	Three Months Ended March 31,
	2024			2023
Loss on marketable securities, net	$	(27,686	)	$	(10,144	)
Dividend income (included in Other income, net and Special dividend income)	$	1,705		$	197,575

The portion of unrealized gains/(losses) on marketable securities for the period that relates to marketable securities still held at the reporting date (in thousands):

	Three Months Ended March 31,
	2024			2023
Loss on marketable securities, net	$	(27,686	)	$	(10,144	)
Less: Net loss recognized related to marketable securities sold		27,695			10,418
Unrealized gain related to marketable securities still held	$	9		$	274

During the three months ended March 31, 2024, the Company sold its remaining 14.2 million shares of Albertsons Companies Inc. (“ACI”) held by the Company, generating net proceeds of $299.1 million. For tax purposes, the Company recognized a long-term capital gain of $288.7 million during the three months ended March 31, 2024. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and as a result recorded estimated federal and state taxes of $72.9 million on the taxable gain.

During the three months ended March 31, 2023, the Company received a $194.1 million special dividend payment on its share of ACI common stock and recognized this as Special dividend income on the Company’s Condensed Consolidated Statements of Operations. As a result, the Company’s Board of Directors declared a $0.09 per common share special cash dividend to maintain distribution requirements as a REIT. This special dividend was paid on December 21, 2023, to shareholders of record on December 7, 2023.

Also, during the three months ended March 31, 2023, the Company sold 7.1 million shares of ACI common stock 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 elected to retain the proceeds from this stock sale for general corporate purposes and paid federal and state taxes of $30.0 million on the taxable gain.