Partnership Income, Expenses and Distributions

12 Months Ended

Dec. 31, 2023

Partnership Income Expenses And Cash Distributions [Abstract]

Partnership Income, Expenses and Distributions

3. Partnership Income, Expenses and Distributions

The Partnership Agreement contains provisions for the distribution of Net Interest Income, Net Residual Proceeds and Liquidation Proceeds, for the allocation of income or loss from operations, and for the allocation of income and loss arising from a repayment, sale, or liquidation of investments. Income and losses will be allocated to each Unitholder on a periodic basis, as determined by the General Partner, based on the number of Preferred Units and BUCs held by each Unitholder as of the last day of the period for which such allocation is to be made. Distributions of Net Interest Income and Net Residual Proceeds will be made to each Unitholder of record on the last day of each distribution period based on the number of Preferred Units and BUCs held by each Unitholder on that date. Cash distributions are currently made on a quarterly basis. The holders of the Preferred Units are entitled to distributions at a fixed rate per annum prior to payment of distributions to other Unitholders.

For purposes of the Partnership Agreement, income and cash received by the Partnership from its investments in MF Properties, investments in unconsolidated entities, and property loans will be included in the Partnership’s Net Interest Income, and cash distributions received by the Partnership from the sale or redemption of such investments will be included in the Partnership’s Net Residual Proceeds.

Net Interest Income (Tier 1) is allocated 99% to the limited partners and BUC holders as a class and 1% to the General Partner. Net Interest Income (Tier 2) and Net Residual Proceeds (Tier 2) are allocated 75% to the limited partners and BUC holders as a class and 25% to the General Partner. Net Interest Income (Tier 2) and Net Residual Proceeds (Tier 2) in excess of the maximum allowable amount as set forth in the Partnership Agreement are considered Net Interest Income (Tier 3) and Net Residual Proceeds (Tier 3) and are allocated 100% to the limited partners and BUC holders as a class.

Cash distributions per BUC declared during the years ended December 31, 2023 and 2022 were as follows:

	For the Years Ended December 31,
	2023		2022
Cash distributions (1)	$	1.466	$	1.687

(1)All cash distributions per BUC amounts above have been retroactively adjusted for the 2022 BUCs Distributions and the 2023 BUCs Distributions on a retroactive basis.

The following table summarizes the BUCs Distributions declared during the years ended December 31, 2023 and 2022:

	BUCs Distribution		Declaration Date	Record Date	Payment Date	Payment Ratio (1)
2023 BUCs Distributions
Second Quarter 2023 BUCs Distribution	$	0.07	6/14/2023	6/30/2023	7/31/2023		0.00448
Third Quarter 2023 BUCs Distribution		0.07	9/13/2023	9/29/2023	10/31/2023		0.00418
Fourth Quarter 2023 BUCs Distribution		0.07	12/13/2023	12/29/2023	1/31/2024		0.00415
subtotal		0.21
2022 BUCs Distributions
Third Quarter 2022 BUCs Distribution	$	0.20	9/14/2022	9/30/2022	10/31/2022		0.01044
Fourth Quarter 2022 BUCs Distribution		0.20	12/19/2022	12/30/2022	1/31/2023		0.01050
subtotal		0.40
Total	$	0.61

(1)The ratio represents the number of BUCs distributed for each BUC outstanding as of the respective record dates. The ratio was determined based on the closing BUC price on the NYSE on the day prior to the respective declaration dates.