Equity Investments, at Fair Value

12 Months Ended

Dec. 31, 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 invest in or 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 consolidated balance sheets as a result of a fair value election.

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


	December 31, 2023			December 31, 2022
Investment Name	Ownership Interest	Fair Value		Ownership Interest	Fair Value
Multi-Family Preferred Equity Ownership Interests
Palms at Cape Coral, LLC	34%	$	5,832	34%	$	5,429
EHOF-NYMT Sunset Apartments Preferred, LLC	57%	19,703		57%	18,139
Lucie at Tradition Holdings, LLC	70%	19,442		70%	17,576
Syracuse Apartments and Townhomes, LLC	58%	21,642		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%	9,882		58%	9,277
Tides on 27th Investors, LLC	54%	17,937		—	—
Rapid City RMI JV LLC	50%	9,804		—	—
America Walks at Port St. Lucie, LLC	—	—		62%	29,873
1122 Chicago DE, LLC	—	—		53%	8,276
FF/RMI 20 Midtown, LLC	—	—		51%	27,079
Bighaus, LLC	—	—		42%	16,482
Total - Multi-Family Preferred Equity Ownership Interests		104,242			152,246

Joint Venture Equity Investments in Multi-Family Properties
GWR Cedars Partners, LLC (1)	70%	1,897		—	—
GWR Gateway Partners, LLC (1)	70%	3,823		—	—
Total - Joint Venture Equity Investments in Multi-Family Properties		5,720			—

Single-Family Equity Ownership Interests
Constructive Loans, LLC (2)	50%	37,154		—	27,500
Total - Single-Family Equity Ownership Interests		37,154			27,500
Total		$	147,116		$	179,746

(1)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. During the year ended December 31, 2023, the Company determined that these joint venture equity investments no longer met the criteria to be classified as held for sale and returned its equity investments in the joint venture entities to equity investments, at fair value (see Note 9).

(2)The Company exercised its option to purchase 50% of the issued and outstanding interests of this entity during the year ended December 31, 2023. The Company purchased $80.8 million and $260.6 million of residential loans from the entity during the years ended December 31, 2023 and 2022, respectively.

The following table presents income from multi-family preferred equity ownership interests for the years ended December 31, 2023, 2022, and 2021, respectively (dollar amounts in thousands). Income from these investments is presented in income from equity investments in the Company's accompanying consolidated statements of operations. Income from these investments during the years ended December 31, 2023, 2022 and 2021 includes $1.2 million of net unrealized gains, $3.6 million of net unrealized losses and $0.4 million of net unrealized gains, respectively.


	For the Years Ended December 31,
Investment Name		2023		2022		2021
1122 Chicago DE, LLC		$	419	$	959	$	908
Bighaus, LLC		701		1,852		1,786
FF/RMI 20 Midtown, LLC		3,948		2,904		3,059
Palms at Cape Coral, LLC		751		554		342
America Walks at Port St. Lucie, LLC		2,244		3,140		1,678
EHOF-NYMT Sunset Apartments Preferred, LLC		2,579		1,939		661
Lucie at Tradition Holdings, LLC		2,841		2,008		484
Syracuse Apartments and Townhomes, LLC		2,691		1,816		—
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)		1,234		540		—
Tides on 27th Investors, LLC		2,513		—		—
Rapid City RMI JV LLC		541		—		—
Somerset Deerfield Investor, LLC		—		1,944		2,295
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)		—		529		585
Walnut Creek Properties Holdings, L.L.C.		—		(153)		1,240
DCP Gold Creek, LLC		—		254		780
Rigsbee Ave Holdings, LLC		—		(174)		1,683
Lurin-RMI, LLC		—		558		931
BBA-EP320 II, L.L.C., BBA-Ten10 II, L.L.C., and Lexington on the Green Apartments, L.L.C. (collectively)		—		—		1,304
Audubon Mezzanine Holdings, L.L.C. (Series A)		—		—		1,251
EP 320 Growth Fund, L.L.C. (Series A) and Turnbury Park Apartments - BC, L.L.C. (Series A) (collectively)		—		—		735
Towers Property Holdings, LLC		—		—		1,192
Mansions Property Holdings, LLC		—		—		1,148
Sabina Montgomery Holdings, LLC - Series B and Oakley Shoals Apartments, LLC - Series A (collectively)		—		—		412
Gen1814, LLC - Series A, Highlands - Mtg. Holdings, LLC - Series A, and Polos at Hudson Investments, LLC - Series A (collectively)		—		—		966
Axis Apartments Holdings, LLC, Arbor-Stratford Holdings II, LLC - Series B, Highlands - Mtg. Holdings, LLC - Series B, Oakley Shoals Apartments, LLC - Series C, and Woodland Park Apartments II, LLC (collectively)		—		—		1,193
Total Income - Multi-Family Preferred Equity Ownership Interests		$	20,462	$	18,670	$	24,633

For the years ended December 31, 2023, 2022 and 2021, the Company recognized $0.2 million, $2.9 million and $2.8 million in premiums resulting from early redemption of multi-family preferred equity ownership interests included in equity investments, respectively, which are included in other income on the accompanying consolidated statements 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 consolidated statements of operations. The following table presents income (loss) from these investments for the years ended December 31, 2023, 2022 and 2021, respectively (dollar amounts in thousands):


	For the Years Ended December 31,
Investment Name		2023		2022		2021
Single-Family Equity Ownership Interests
Constructive Loans, LLC (1)		$	614	$	(1,750)	$	2,750
Morrocroft Neighborhood Stabilization Fund II, LP (2)		—		(416)		6,378
Headlands Asset Management Fund III (Cayman), LP (Headlands Flagship Opportunity Fund Series I) (3)		—		—		(15)
Total Income (Loss) - Single Family Equity Ownership Interests		$	614	$	(2,166)	$	9,113

Joint Venture Equity Investments in Multi-Family Properties (4)
GWR Cedars Partners, LLC		$	(823)	$	(1,050)	$	60
GWR Gateway Partners, LLC		(2,468)		(380)		90
Total (Loss) Income - Joint Venture Equity Investments in Multi-Family Properties		$	(3,291)	$	(1,430)	$	150

(1)Includes net unrealized losses of $5.2 million and $1.8 million and a net unrealized gain of $2.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.

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

(3)The Company's equity investment was redeemed during the year ended December 31, 2021.

(4)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. During the year ended December 31, 2023, the Company determined that these joint venture equity investments no longer met the criteria to be classified as held for sale and returned its equity investments in the joint venture entities to equity investments, at fair value (see Note 9). Includes net unrealized losses of $3.3 million and $1.4 million for the years ended December 31, 2023, and 2022, respectively, and net unrealized gains of $0.2 million for the year ended December 31, 2021.

Summary combined financial information for the Company’s equity investments as of December 31, 2023 and 2022, respectively, and for the years ended December 31, 2023, 2022, and 2021, respectively, is shown below and includes summary financial information for the Company's joint venture equity investments in multi-family properties that are included in assets of disposal group held for sale as of December 31, 2023 and 2022, respectively (dollar amounts in thousands):


	December 31, 2023		December 31, 2022
Balance Sheets:
Real estate, net	$	409,078	$	553,356
Residential loans	162,060		71,077
Other assets	90,314		38,616
Total assets	$	661,452	$	663,049

Mortgages payable on real estate, net	$	295,451	$	301,118
Other liabilities	172,118		120,850
Total liabilities	467,569		421,968
Members' equity	193,883		241,081
Total liabilities and members' equity	$	661,452	$	663,049


	For the Years Ended December 31,
	2023		2022		2021
Operating Statements: (1)
Rental income	$	21,299	$	23,237	$	87,147
Real estate sales	—		399,783		205,000
Cost of real estate sales	—		(277,740)		(140,800)
Interest income	10,393		5,787		5,285
Realized and unrealized losses, net	—		—		(7,693)
Other income	34,870		21,769		13,636
Operating expenses	(33,883)		(38,921)		(55,031)
Income before debt service and depreciation and amortization	32,679		133,915		107,544
Interest expense	(23,315)		(11,892)		(29,617)

Depreciation and amortization	(14,904)		(14,779)		(37,172)
Net (loss) income	$	(5,540)	$	107,244	$	40,755

(1)The Company records income (loss) from equity investments under either the hypothetical liquidation of book value method of accounting or the equity method using the fair value option. Accordingly, the combined net income (loss) shown above is not indicative of the income (loss) recognized by the Company from equity investments.