Investments in Equity Affiliates

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

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


	Investments in Equity Affiliates at				UPB of Loans to Equity Affiliates at June 30, 2023
Equity Affiliates	June 30, 2023		December 31, 2022
Arbor Residential Investor LLC	$	42,157	$	46,951	$	—
Fifth Wall Ventures	14,028		13,584		—
AMAC Holdings III LLC	13,851		15,825		—
Lightstone Value Plus REIT L.P.	1,895		1,895		—
Docsumo Pte. Ltd.	450		450		—
JT Prime	425		425		—
North Vermont Avenue	—		—		—
West Shore Café	—		—		1,688
Lexford Portfolio	—		—		—
East River Portfolio	—		—		—
Total	$	72,806	$	79,130	$	1,688

Arbor Residential Investor LLC (“ARI”). During the three and six months ended June 30, 2023, we recorded income of $3.5 million and $2.6 million, respectively, and during the three and six months ended June 30, 2022, we recorded income of $1.1 million and $6.1 million, respectively, to income from equity affiliates in our consolidated statements of income. During both the three and six months ended June 30, 2023, we received cash distributions of $7.5 million, and during the three and six months ended June 30, 2022, we received cash distributions of $7.5 million and $15.0 million, respectively, which were classified as returns of capital. The allocation of income is based on the underlying agreements, which may be different than our indirect interest, and at June 30, 2023 was 9.2%. At June 30, 2023, our indirect interest was 12.3%.

Fifth Wall Ventures (“Fifth Wall”). During the six months ended June 30, 2023 and 2022, we funded an additional $0.6 million and $6.9 million, respectively, and during both the three and six months ended June 30, 2023, we recorded a loss associated with this investment of $0.2 million. In addition, during the three months ended June 30, 2022, we received a distribution from this investment of $0.9 million, which was classified as a return of capital.

AMAC Holdings III LLC (“AMAC III”). During the three and six months ended June 30, 2023, we received distributions of $0.5 million and $1.1 million, respectively, which were classified as returns of capital, and recorded losses associated with this investment of $0.5 million and $0.9 million, respectively. During 2022, we funded an additional $4.9 million and during the three and six months ended June 30, 2022, recorded losses associated with this investment of $0.6 million and $1.1 million, respectively. In addition, during both the three and six months ended June 30, 2022, we received a distribution of $0.3 million.

Lexford Portfolio. During the three and six months ended June 30, 2023, we received distributions of $2.5 million and $7.2 million, respectively, and during the three and six months ended June 30, 2022, we received distributions of $6.0 million, which were recognized as income from equity affiliates.

Equity Participation Interest. During the first quarters of 2023 and 2022, we received $11.0 million and $2.6 million, respectively, from equity participation interests on properties that were sold and which we had a preferred equity loan that previously paid-off.

See Note 17 for details of certain investments described above.