Multi-family Loans, at Fair Value

3 Months Ended

Mar. 31, 2024

5. Multi-family Loans, at Fair Value

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 (losses) gains, net on the Company's condensed consolidated statements of operations. Multi-family loans consist of the following as of March 31, 2024 and December 31, 2023, respectively (dollar amounts in thousands):


	March 31, 2024		December 31, 2023
Investment amount	$	96,314	$	95,434
Unrealized (losses) gains, net	(4,409)		358
Total, at Fair Value	$	91,905	95,792

For the three months ended March 31, 2024 and 2023, the Company recognized $4.8 million in net unrealized losses and $0.5 million in net unrealized gains on multi-family loans, respectively.

For the three months ended March 31, 2024 and 2023, the Company recognized no premiums resulting from early redemption of multi-family loans.

The table below presents the fair value and aggregate unpaid principal balance of the Company's multi-family loan in non-accrual status as of March 31, 2024 and December 31, 2023, respectively (dollar amounts in thousands):


	March 31, 2024				December 31, 2023
Days Late	Fair Value (1)		Unpaid Principal Balance		Fair Value		Unpaid Principal Balance



90 +	$	—	$	3,363	$	4,753	$	3,363

(1)As of March 31, 2024, the Company reduced the fair value of the multi-family loan to zero as a result of recent developments with respect to the property, its financing and market conditions.

The geographic concentrations of credit risk exceeding 5% of the total multi-family loan investment amounts as of March 31, 2024 and December 31, 2023, respectively, are as follows:


	March 31, 2024		December 31, 2023
Texas	32.7	%	32.6	%
Tennessee	15.3	%	15.2	%
Florida	10.6	%	10.5	%
Arkansas	9.5	%	9.5	%
Louisiana	7.7	%	7.5	%
Alabama	6.7	%	6.7	%
North Carolina	5.8	%	5.8	%
Indiana	5.2	%	5.3	%