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Multi-family Loans, at Fair Value (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Mezzanine Loans and Preferred Equity Investments

Multi-family loans consist of the following as of June 30, 2023 and December 31, 2022, respectively (dollar amounts in thousands):


	June 30, 2023		December 31, 2022
Investment amount	$	97,228	$	88,249
Deferred loan fees, net	(485)		(428)
Unrealized gains (losses), net	679		(287)
Total, at Fair Value	$	97,422	$	87,534

The following table presents condensed statements of operations for non-Company-sponsored VIEs for the three months ended June 30, 2023 and 2022, respectively (dollar amounts in thousands). The following table includes net (loss) income from assets and liabilities of disposal group held for sale and intercompany balances have been eliminated for purposes of this presentation.


	Three Months Ended June 30,
	2023						2022
	Consolidated SLST		Consolidated Real Estate		Total		Consolidated SLST		Consolidated Real Estate		Total
Interest income	$	8,440	$	—	$	8,440	$	9,254	$	—	$	9,254
Interest expense	5,966		—		5,966		6,208		—		6,208
Total net interest income	2,474		—		2,474		3,046		—		3,046

Realized gains, net	—		4,820		4,820		—		—		—
Unrealized (losses) gains, net	(12,328)		1,736		(10,592)		(4,275)		—		(4,275)
Income from real estate	—		41,885		41,885		—		34,409		34,409
Other losses	—		(16,839)		(16,839)		—		—		—
Total non-interest (loss) income	(12,328)		31,602		19,274		(4,275)		34,409		30,134



Expenses related to real estate	—		49,881		49,881		—		81,485		81,485

Net loss	(9,854)		(18,279)		(28,133)		(1,229)		(47,076)		(48,305)
Net loss attributable to non-controlling interest in Consolidated VIEs	—		3,892		3,892		—		18,922		18,922
Net loss attributable to Company	$	(9,854)	$	(14,387)	$	(24,241)	$	(1,229)	$	(28,154)	$	(29,383)

The following table presents condensed statements of operations for non-Company-sponsored VIEs for the six months ended June 30, 2023 and 2022, respectively (dollar amounts in thousands). The following table includes net (loss) income from assets and liabilities of disposal group held for sale and intercompany balances have been eliminated for purposes of this presentation.


	Six Months Ended June 30,
	2023						2022
	Consolidated SLST		Consolidated Real Estate		Total		Consolidated SLST		Consolidated Real Estate		Total
Interest income	$	17,173	$	—	$	17,173	$	18,635	$	—	$	18,635
Interest expense	12,280		—		12,280		12,186		—		12,186
Total net interest income	4,893		—		4,893		6,449		—		6,449

Realized gains, net	—		4,820		4,820		—		—		—
Unrealized (losses) gains, net	(10,029)		438		(9,591)		(19,555)		—		(19,555)
Income from real estate	—		80,960		80,960		—		58,047		58,047
Other losses	—		(27,098)		(27,098)		—		—		—
Total non-interest (loss) income	(10,029)		59,120		49,091		(19,555)		58,047		38,492



Expenses related to real estate	—		97,943		97,943		—		134,766		134,766

Net loss	(5,136)		(38,823)		(43,959)		(13,106)		(76,719)		(89,825)
Net loss attributable to non-controlling interest in Consolidated VIEs	—		10,593		10,593		—		33,792		33,792
Net loss attributable to Company	$	(5,136)	$	(28,230)	$	(33,366)	$	(13,106)	$	(42,927)	$	(56,033)

Schedule of Preferred Equity and Mezzanine Loans, Fair Value Compared to Unpaid Principal

The table below presents the fair value and aggregate unpaid principal balance of the Company's multi-family loans in non-accrual status as of June 30, 2023 and December 31, 2022, respectively (dollar amounts in thousands):


	June 30, 2023				December 31, 2022
Days Late	Fair Value		Unpaid Principal Balance		Fair Value		Unpaid Principal Balance



90 +	$	4,753	$	3,363	$	4,523	$	3,363

Schedule of Geographic Concentration of Credit Risk Exceeding 5% of Balances

The geographic concentrations of credit risk exceeding 5% of the unpaid principal balance of residential loans, at fair value as of June 30, 2023 and December 31, 2022, respectively, are as follows:


	June 30, 2023						December 31, 2022
	Residential loans		Consolidated SLST		Residential loans held in securitization trusts		Residential loans		Consolidated SLST		Residential loans held in securitization trusts
California	21.4	%	10.7	%	17.5	%	24.3	%	10.6	%	19.2	%
Florida	13.5	%	10.3	%	11.0	%	13.2	%	10.3	%	10.2	%
New York	9.0	%	9.9	%	8.4	%	8.0	%	9.8	%	8.6	%
New Jersey	7.0	%	7.5	%	5.5	%	6.3	%	7.4	%	5.6	%
Texas	6.6	%	3.9	%	7.8	%	7.0	%	4.0	%	7.3	%
Washington	5.1	%	1.8	%	2.9	%	5.7	%	1.8	%	2.9	%
Illinois	3.1	%	7.2	%	3.4	%	2.6	%	7.2	%	3.2	%

The geographic concentrations of credit risk exceeding 5% of the total multi-family loan investment amounts as of June 30, 2023 and December 31, 2022, respectively, are as follows:


	June 30, 2023		December 31, 2022
Texas	34.9	%	30.1	%
Tennessee	14.5	%	15.6	%
Florida	10.1	%	10.9	%
Arkansas	9.4	%	—
Louisiana	7.0	%	7.5	%
Alabama	6.6	%	7.1	%
North Carolina	5.7	%	6.1	%
Indiana	5.2	%	5.7	%

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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