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Investments in Equity Affiliates

6 Months Ended

Jun. 30, 2021

Investments in Equity Affiliates

Investments in Equity Affiliates

Note 8 — Investments in Equity Affiliates

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We account for all investments in equity affiliates under the equity method. A summary of these investments is as follows (in thousands):

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​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	UPB of Loans to
​	​	Investments in Equity Affiliates at					​	Equity Affiliates at
Equity Affiliates		June 30, 2021			December 31, 2020			June 30, 2021
Arbor Residential Investor LLC	​	$	67,717	​	$	59,150	​	$	—
AMAC Holdings III LLC	​	​	13,795	​	​	10,308	​	​	—
North Vermont Avenue	​	​	2,421	​	​	2,496	​	​	—
Lightstone Value Plus REIT L.P.	​	​	1,895	​	​	1,895	​	​	—
JT Prime	​		425	​		425	​		—
West Shore Café	​	​	—	​	​	—	​	​	1,687
Lexford Portfolio	​	​	—	​	​	—	​	​	—
East River Portfolio	​		—	​		—	​		—
Total	​	$	86,253	​	$	74,274	​	$	1,687

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Arbor Residential Investor LLC (“ARI”). During the three and six months ended June 30, 2021, we recorded income of $4.8 million and $27.3 million, respectively, and during the three and six months ended June 30, 2020, we recorded income of $20.9 million and $23.8 million, respectively, to income from equity affiliates in our consolidated statements of operations. During the three and six months ended June 30, 2021, we also received cash distributions totaling $5.6 million and $18.7 million from this investment, respectively, which were classified as returns of capital. In January 2021, an equity investor in the underlying residential mortgage banking business exercised their right to purchase an additional interest in this investment, which decreased our indirect interest to 12.3%. The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and was 9.2% as of June 30, 2021.

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Summarized statements of income for Wakefield Investment Holdings LLC, the third-party entity formed to hold the underlying residential mortgage banking business, are as follows (in thousands):

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​	​	​	​	​	​	​
​	​	Six Months Ended June 30,
​		2021			2020
Statements of Income:	​	​	​	​	​	​
Total revenues	​	$	630,400	​	$	689,728
Total expenses	​	​	476,710	​	​	506,259
Net income	​	$	153,690	​	$	183,469

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AMAC Holdings III LLC (“AMAC III”). During the first quarter of 2021, we funded an additional $4.0 million of a total committed investment of $30.0 million, which brings the total funded investment to $15.7 million at June 30, 2021. During the three and six months ended June 30, 2021 the loss recorded from this investment was $0.3 million and $0.5 million, respectively.

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Century Summerfield Apartments. During the first quarter of 2021, we funded $17.0 million of a total committed investment of $20.0 million for a 50% equity interest in a joint venture with a third party that was formed to invest in an apartment community. During the second quarter of 2021, this joint venture was dissolved and we received distributions totaling $17.2 million and recorded a $0.2 million gain.

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See Note 17 for details of certain investments described above.

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- References

No definition available.

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- Definition

The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-URI http://asc.fasb.org/topic&trid=2196965

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