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Related Party Transactions
 6 Months Ended
Jun. 30, 2023
Related Party Transactions [Abstract]  
Related Party Transactions

 

4.Related Party Transactions

 

We engage in certain business transactions with related parties, including investment in notes receivables. Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest.

 

Pillar is a wholly owned by a subsidiary of the May Realty Holdings, Inc., which owns approximately 90.8% of ARL, which owns approximately 78.4% of TCI, which owns 81.1% of the Company.

 

Advisory fees paid to Pillar were $380 and $273 for the three months ended June 30, 2023 and 2022, respectively, and $699 and $541 for the six months ended June 30, 2023 and 2022, respectively.

 

Notes receivable are amounts held by UHF (See Note 3 – Notes Receivable). UHF is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. Interest income on these notes was $334 for the three months ended June 30, 2023 and 2022, and $665 for the six months ended June 30, 2023 and 2022.

 

Related party receivables were $103,030 and $100,134 at June 30, 2023 and December 31, 2022, respectively; which represents amounts outstanding from TCI for loans and advances, net of unreimbursed fees and bear interest at prime plus one percent. Interest income on related party receivables from TCI was $2,444 and $1,099 for the three months ended June 30, 2023 and 2022, respectively, and $3,979 and $2,020 for the six months ended June 30, 2023 and 2022, respectively.