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Note 6 - Marketable Securities
 9 Months Ended
Sep. 30, 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 September 30, 2023 and December 31, 2022, are as follows (in thousands):

 

  

As of September 30, 2023

  

As of December 31, 2022

 

Marketable securities:

        

Amortized cost

 $40,797  $87,411 

Unrealized gains, net

  286,338   510,321 

Total fair value

 $327,135  $597,732 

 

The Company’s net gains/(losses) on marketable securities for the three and nine months ended September 30, 2023 and 2022, is as follows (in thousands):

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2023

  

2022

  

2023

  

2022

 

Gain/(loss) on marketable securities, net

 $13,225  $(75,491) $17,642  $(215,194)

 

During the nine months ended September 30, 2023, the Company sold 14.1 million shares of Albertsons Companies Inc. (“ACI”) held by the Company, generating net proceeds of $282.3 million. For tax purposes, the Company recognized a long-term capital gain of $241.2 million. The Company anticipates retaining the proceeds from this stock sale for general corporate purposes and will pay federal and state taxes of $61.0 million on the taxable gain. As of September 30, 2023, the Company held 14.2 million shares of ACI, which had a value of $323.3 million.

 

In addition, during the nine months ended September 30, 2023, the Company received $194.1 million representing its share of an 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 ending December 31, 2023.