Multi-family Loans, at Fair Value

9 Months Ended

Sep. 30, 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 gains (losses), net on the Company's condensed consolidated statements of operations. Multi-family loans consist of the following as of September 30, 2024 and December 31, 2023, respectively (dollar amounts in thousands):


	September 30, 2024		December 31, 2023
Investment amount	$	91,778	$	95,434
Unrealized (losses) gains, net	(4,164)		358
Total, at Fair Value	$	87,614	$	95,792

For the three and nine months ended September 30, 2024, the Company recognized $0.2 million in net unrealized gains and $4.6 million in net unrealized losses on multi-family loans, respectively. For the three and nine months ended September 30, 2023, the Company recognized $16.8 thousand in net unrealized losses and $0.9 million in net unrealized gains on multi-family loans, respectively.

For the three and nine months ended September 30, 2024, the Company recognized $28.4 thousand in premiums resulting from early redemption of multi-family loans. For the nine months ended September 30, 2023, the Company recognized $0.2 million in premiums resulting from early redemption of multi-family loans. The Company did not recognize premiums resulting from early redemptions of multi-family loans for the three months ended September 30, 2023. Premiums resulting from early redemption of multi-family loans are included in other income on the accompanying condensed consolidated statements of operations.

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 September 30, 2024 and December 31, 2023, respectively (dollar amounts in thousands):


	September 30, 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 September 30, 2024, the Company has reduced the fair value of the multi-family loan to zero as a result of 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 September 30, 2024 and December 31, 2023, respectively, are as follows:


	September 30, 2024		December 31, 2023
Texas	35.1	%	32.6	%
Tennessee	16.4	%	15.2	%
Florida	11.3	%	10.5	%
Arkansas	10.1	%	9.5	%
Louisiana	8.5	%	7.5	%
North Carolina	6.1	%	5.8	%
Indiana	5.5	%	5.3	%