Note 9 — Investments in Equity Affiliates

We account for all investments in equity affiliates under the equity method. The following is a summary of our investments in equity affiliates:

	Investments in Equity Affiliates at				UPB of Loans to Equity Affiliates at
Equity Affiliates	September 30, 2017		December 31, 2016		September 30, 2017

Arbor Residential Investor LLC	$	26,821,643	$	28,917,457	$	—
West Shore Café	2,120,347		2,050,347		1,687,500
Lightstone Value Plus REIT L.P.	1,894,727		1,894,727		—
JT Prime	425,000		425,000		—
East River Portfolio	68,923		83,222		1,705,938
Lexford Portfolio	100		100		—
Issuers of Junior Subordinated Notes	—		578,000		—

Total	$	31,330,740	$	33,948,853	$	3,393,438

Arbor Residential Investor LLC (“ARI”). During the three and nine months ended September 30, 2017, we recorded a loss of $1.3 million and $1.9 million, respectively, and during the three and nine months ended September 30, 2016, we recorded income of $3.9 million and $8.5 million, respectively, to income from equity affiliates in our consolidated statements of income related to our investment in this residential mortgage banking business.

During the nine months ended September 30, 2017, we funded $0.6 million of additional mortgage purchases in connection with a joint venture that invests in non-qualified residential mortgages purchased from ARI’s origination platform. During the nine months ended September 30, 2017, we received cash distributions from this joint venture totaling $0.9 million (which were classified as a return of capital). During the three and nine months ended September 30, 2017 we recorded income of less than $0.1 million and $0.1 million, respectively, and during the three and nine months ended September 30, 2016, we recorded income of $0.3 million and $0.4 million, respectively, to income from equity affiliates in our consolidated statements of income related to this investment.

The summarized statements of operations for our investment in ARI are as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016

Statements of Operations:
Total revenues	$	32,429,382		$	71,040,665	$	108,195,846		$	172,929,878
Total expenses	40,214,486			47,256,537		120,232,132			128,120,821

Net (loss) income	$	(7,785,104	)	$	23,784,128	$	(12,036,286	)	$	44,809,057


Arbor’s share of (loss) income	$	(1,230,905	)	$	4,167,233	$	(1,844,144	)	$	8,885,528

Lexford Portfolio. In the three and nine months ended September 30, 2017, we received distributions of $0.7 million and $2.0 million, respectively, and in the three and nine months ended September 30, 2016, we received distributions of $0.7 million and $2.1 million, respectively, from this equity investment which was recognized as income. See Note 19 — Agreements and Transactions with Related Parties for details.

Issuers of Junior Subordinated Notes. In the first quarter of 2017, we purchased, at a discount, a portion of our junior subordinated notes. In connection with this extinguishment of debt, we settled our investment in these affiliated entities. See Note 11 — Debt Obligations for details.

Equity Participation Interest. In the third quarter of 2017, we received $1.5 million from the redemption of a 25% equity participation interest we held in a multifamily property, which is included in income from equity affiliates on the consolidated statements of income. Prior to this transaction, our basis in this investment was zero.