Investments in Equity Affiliates

3 Months Ended

Mar. 31, 2018

Note 8 — Investments in Equity Affiliates

We account for all investments in equity affiliates under the equity method. The following is a summary of our investments in equity affiliates (in thousands):

	Investments in Equity Affiliates at				UPB of Loans to Equity Affiliates at
Equity Affiliates	March 31, 2018		December 31, 2017		March 31, 2018

Arbor Residential Investor LLC	$	19,137	$	19,193	$	—
West Shore Café	2,168		2,140		1,688
Lightstone Value Plus REIT L.P.	1,895		1,895		—
JT Prime	425		425		—
East River Portfolio	—		—		—
Lexford Portfolio	—		—		—

Total	$	23,625	$	23,653	$	1,688

Arbor Residential Investor LLC (“ARI”). During both the three months ended March 31, 2018 and 2017, we recorded income of $0.1 million to income from equity affiliates in our consolidated statements of income related to our investment in this residential mortgage banking business. In addition, during the three months ended March 31, 2018, we made a $2.4 million payment for our proportionate share of a litigation settlement related to this investment, which was distributed back to us by our equity affiliate.

During the three months ended March 31, 2018, we received a $0.2 million cash distribution, which was classified as a return of capital, in connection with a joint venture that invests in non-qualified residential mortgages purchased from ARI’s origination platform. During both the three months ended March 31, 2018 and 2017, we recorded income of less than $0.1 million to income from equity affiliates in our consolidated statements of income related to this investment.

Lexford Portfolio. In the three months ended March 31, 2018 and 2017, we received distributions of $0.6 million and $0.7 million, respectively, from this equity investment which was recognized as income. See Note 18 — Agreements and Transactions with Related Parties for details.