Equity Investments, at Fair Value

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

6. Equity Investments, at Fair Value

The Company's equity investments consist of, or have consisted of, preferred equity ownership interests in entities that invest in multi-family properties where the risks and payment characteristics are equivalent to an equity investment (or multi-family preferred equity ownership interests), equity ownership interests in entities that invest in single-family properties and originate residential loans (or single-family equity ownership interests) and joint venture equity investments in multi-family properties. The Company's equity investments are accounted for under the equity method and are presented at fair value on its condensed consolidated balance sheets as a result of a fair value election.

The following table presents the Company's equity investments as of June 30, 2023 and December 31, 2022, respectively (dollar amounts in thousands):


	June 30, 2023			December 31, 2022
Investment Name	Ownership Interest	Fair Value		Ownership Interest	Fair Value
Multi-Family Preferred Equity Ownership Interests
FF/RMI 20 Midtown, LLC	51%	$	28,108	51%	$	27,079
Palms at Cape Coral, LLC	34%	5,635		34%	5,429
America Walks at Port St. Lucie, LLC	62%	25,500		62%	29,873
EHOF-NYMT Sunset Apartments Preferred, LLC	57%	18,894		57%	18,139
Lucie at Tradition Holdings, LLC	70%	18,473		70%	17,576
Syracuse Apartments and Townhomes, LLC	58%	20,854		58%	20,115
Hudson Bridge Apartments, LLC - Series A, Briar Hill Apartments, LLC, Kings Glen Apartments, LLC, Flagstone Apartments, LLC, Brookfield Apartments II, LLC - Series B, and Silber JBSM Properties, LLC (collectively)	58%	9,570		58%	9,277
Tides on 27th Investors, LLC	54%	16,721		—	—
1122 Chicago DE, LLC	—	—		53%	8,276
Bighaus, LLC	—	—		42%	16,482
Total - Multi-Family Preferred Equity Ownership Interests		143,755			152,246

Single-Family Equity Ownership Interests
Constructive Loans, LLC (1)	50%	25,000		—	27,500
Total - Single-Family Equity Ownership Interests		25,000			27,500
Total		$	168,755		$	179,746

(1)The Company exercised its option to purchase 50% of the issued and outstanding interests of an entity that originates residential loans during the six months ended June 30, 2023. The Company purchased $24.0 million and $40.0 million of residential loans from the entity during the three and six months ended June 30, 2023, respectively, and $82.1 million and $252.3 million of residential loans from the entity during the three and six months ended June 30, 2022, respectively.

The Company records its equity in earnings or losses from its multi-family preferred equity ownership interests under the hypothetical liquidation of book value method of accounting due to the structures and the preferences it receives on the distributions from these entities pursuant to the respective agreements. Under this method, the Company recognizes income or loss in each period based on the change in liquidation proceeds it would receive from a hypothetical liquidation of its investment. Pursuant to the fair value election, changes in fair value of the Company's multi-family preferred equity ownership interests are reported in current period earnings.

The following table presents income from multi-family preferred equity ownership interests for the three and six months ended June 30, 2023 and 2022, respectively (dollar amounts in thousands). Income from these investments is presented in income from equity investments in the Company's accompanying condensed consolidated statements of operations. Income from these investments during the three and six months ended June 30, 2023 includes $5.3 thousand and $0.6 million of net unrealized gains, respectively. Income from these investments during the three and six months ended June 30, 2022 includes $0.3 million and $0.4 million of net unrealized gains, respectively.


	Three Months Ended June 30,				Six Months Ended June 30,
Investment Name	2023		2022		2023		2022
1122 Chicago DE, LLC	$	168	$	241	$	419	$	478
Bighaus, LLC	164		472		701		937
FF/RMI 20 Midtown, LLC	935		812		1,734		1,610
Palms at Cape Coral, LLC	180		158		357		313
America Walks at Port St. Lucie, LLC	773		902		1,899		1,804
EHOF-NYMT Sunset Apartments Preferred, LLC	638		559		1,263		1,108
Lucie at Tradition Holdings, LLC	701		614		1,385		1,215
Syracuse Apartments and Townhomes, LLC	666		591		1,321		1,107
Hudson Bridge Apartments, LLC - Series A, Briar Hill Apartments, LLC, Kings Glen Apartments, LLC, Flagstone Apartments, LLC, Brookfield Apartments II, LLC - Series B, and Silber JBSM Properties, LLC (collectively)	306		—		607		—
Tides on 27th Investors, LLC	501		—		1,298		—
DCP Gold Creek, LLC	—		(599)		—		254
Rigsbee Ave Holdings, LLC	—		—		—		(174)
Walnut Creek Properties Holdings, L.L.C.	—		—		—		(153)
Lurin-RMI, LLC	—		1,520		—		1,800
Somerset Deerfield Investor, LLC	—		596		—		1,183
RS SWD Owner, LLC, RS SWD Mitchell Owner, LLC, RS SWD IF Owner, LLC, RS SWD Mullis Owner, LLC, RS SWD JH Mullis Owner, LLC and RS SWD Saltzman Owner, LLC (collectively)	—		163		—		322
Total Income - Multi-Family Preferred Equity Ownership Interests	$	5,032	$	6,029	$	10,984	$	11,804

For the three and six months ended June 30, 2023, the Company recognized no premiums resulting from early redemption of multi-family preferred equity ownership interests included in equity investments. For the three and six months ended June 30, 2022, the Company recognized $0.7 million and $1.5 million in premiums, respectively, resulting from early redemption of multi-family preferred equity ownership interests included in equity investments, which are included in other income on the accompanying condensed consolidated statement of operations.

Income from single-family equity ownership interests and joint venture equity investments in multi-family properties that are accounted for under the equity method using the fair value option is presented in income from equity investments in the Company's accompanying condensed consolidated statements of operations. The following table presents income (loss) from these investments for the three and six months ended June 30, 2023 and 2022, respectively (dollar amounts in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
Investment Name	2023		2022		2023		2022
Single-Family Equity Ownership Interests
Constructive Loans, LLC (1)	$	—	$	1,750	$	(2,500)	$	1,750
Morrocroft Neighborhood Stabilization Fund II, LP (2)	—		22		—		50
Total Income (Loss) - Single-Family Equity Ownership Interests	$	—	$	1,772	$	(2,500)	$	1,800

Joint Venture Equity Investments in Multi-Family Properties (3)
GWR Cedars Partners, LLC	$	(613)	$	111	$	(200)	$	211
GWR Gateway Partners, LLC	(1,763)		188		(1,116)		338
Total (Loss) Income - Joint Venture Equity Investments in Multi-Family Properties	$	(2,376)	$	299	$	(1,316)	$	549

(1)Includes net unrealized losses of $1.0 million and $4.3 million for the three and six months ended June 30, 2023, respectively. Includes a net unrealized gain of $1.8 million for the three and six months ended June 30, 2022.

(2)The Company's equity investment was redeemed during the year ended December 31, 2022.

(3)The Company's joint venture equity investments in multi-family properties were transferred to assets of disposal group held for sale during the year ended December 31, 2022 (see Note 9). Includes net unrealized losses of $2.4 million and $1.3 million for the three and six months ended June 30, 2023, respectively, and net unrealized gains of $0.3 million and $0.5 million for the three and six months ended June 30, 2022, respectively.