Multi-family Loans, at Fair Value

6 Months Ended

Jun. 30, 2021

The Company's multi-family loans consisting of its preferred equity in, and mezzanine loans to, entities that have multi-family real estate assets are presented at fair value on the Company's condensed consolidated balance sheets as a result of a fair value election. Accordingly, changes in fair value are presented in unrealized gains (losses), net on the Company's condensed consolidated statements of operations. Preferred equity and mezzanine loan investments consist of the following as of June 30, 2021 and December 31, 2020, respectively (dollar amounts in thousands):


	June 30, 2021		December 31, 2020
Investment amount	$	125,924	$	163,392
Deferred loan fees, net	(871)		(1,169)
Unrealized gains, net	1,666		1,370
Total, at Fair Value	$	126,719	$	163,593

For the three and six months ended June 30, 2021, the Company recognized $0.2 million and $0.3 million in net unrealized gains on preferred equity and mezzanine loan investments, respectively. For the three and six months ended June 30, 2020, the Company recognized $0.1 million and $5.8 million in net unrealized losses on preferred equity and mezzanine loan investments, respectively.

For the three and six months ended June 30, 2021, the Company recognized $1.5 million and $2.0 million in preferred equity and mezzanine loan premiums resulting from early redemption, respectively. For the three months ended June 30, 2020, there were no preferred equity and mezzanine loan premiums resulting from early redemption. For the six months ended June 30, 2020, the Company recognized $0.1 million in preferred equity and mezzanine loan premiums resulting from early redemption.

The table below presents the fair value and aggregate unpaid principal balance of the Company's preferred equity and mezzanine loan investments in non-accrual status as of June 30, 2021 and December 31, 2020, respectively (dollar amounts in thousands):


	June 30, 2021				December 31, 2020
Days Late	Fair Value		Unpaid Principal Balance		Fair Value		Unpaid Principal Balance



90 +	$	3,648	$	3,363	$	3,325	$	3,363

The geographic concentrations of credit risk exceeding 5% of the total preferred equity and mezzanine loan investment amounts as of June 30, 2021 and December 31, 2020, respectively, are as follows:


	June 30, 2021		December 31, 2020
Tennessee	16.0	%	14.3	%
Texas	15.2	%	11.4	%
Florida	11.3	%	8.5	%
South Carolina	9.5	%	7.2	%
Alabama	8.8	%	9.7	%
Georgia	6.8	%	10.1	%
Ohio	6.8	%	5.2	%
North Carolina	6.5	%	4.9	%