Preferred Equity Investments and Investments in Unconsolidated Real Estate Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2021

Preferred Equity Investments and Investments in Unconsolidated Real Estate Joint Ventures

Schedule of Equity Method Investments

The carrying amount of the Company’s preferred equity investments and investments in unconsolidated real estate joint ventures as of March 31, 2021 and December 31, 2020 is summarized in the table below (amounts in thousands):

	March 31,		December 31,
Property	2021		2020
Alexan CityCentre	$	15,725	$	15,063
Alexan Southside Place (1)		—		26,038
Mira Vista		5,250		5,250
Strategic Portfolio (2)		27,054		27,054
The Conley (3)		—		15,036
The Riley		6,961		—
Thornton Flats		4,600		4,600
Wayford at Concord		6,500		6,500
Other		99		97
Total	$	66,189	$	99,638
Provision for credit losses (4)		(315)		(16,153)
Total, net	$	65,874	$	83,485

(1) On March 25, 2021, Alexan Southside Place, the property underlying the Company's preferred equity investment, was sold. Refer to Note 3 for further information.

(2) Belmont Crossing, Georgetown Crossing, Hunter's Pointe, Park on the Square, Sierra Terrace, Sierra Village, The Commons and Water's Edge are collectively known as the Strategic Portfolio.

(3) On March 18, 2021, the Company's preferred equity investment in The Conley was redeemed. Refer to Note 3 for further information.

(4) Refer to the Provision for Credit Losses table below.

	March 31,		December 31,
	2021		2020
Provision for credit losses, beginning of the period	$	16,153	$	—
Provision for credit loss on pool of assets, net (1)		92		223
Provision for credit loss – Alexan Southside Place (2)		(15,930)		15,930
Provision for credit losses, end of period	$	315	$	16,153

(1) Under Current Expected Credit Losses (CECL), a provision for credit losses for similar assets is calculated based on a historical default rate applied to the remaining life of the assets. The change in the provision during the three months ended March 31, 2021 was a result of an increase in the trailing twelve-month historical default rate.

(2) On March 25, 2021, Alexan Southside Place, the property underlying the Company’s preferred equity investment, was sold. Refer to Note 3 for further information.

Schedule of preferred returns on the company

The preferred returns on the Company’s unconsolidated real estate joint ventures for the three months ended March 31, 2021 and 2020 are summarized below (amounts in thousands):

	Three Months Ended
	March 31,
Property	2021		2020
Alexan CityCentre	$	663	$	591
Alexan Southside Place		—		315
Helios (1)		—		(159)
Mira Vista		133		134
Riverside Apartments		—		409
Strategic Portfolio		710		297
The Conley		405		476
The Riley		64		—
Thornton Flats		102		103
Wayford at Concord		210		193
Whetstone Apartments		—		56
Total preferred returns on unconsolidated joint ventures	$	2,287	$	2,415

(1) Of the ($159) loss incurred at Helios for the three months ended March 31, 2020, ($143) pertains to costs related to the sale of Helios.

Schedule Of Occupancy Percentages Of The Companys Unconsolidated Real Estate Joint Ventures

The occupancy percentages of the Company’s unconsolidated real estate joint ventures at March 31, 2021 and December 31, 2020 are as follows:

	March 31,		December 31,
Property	2021		2020
Alexan CityCentre	95.3	%	94.1	%
Encore Chandler	(1)		(2)
Mira Vista	96.5	%	95.0	%
Strategic Portfolio
Belmont Crossing	89.6	%	91.7	%
Georgetown Crossing	89.3	%	88.7	%
Hunter’s Pointe	99.5	%	99.0	%
Park on the Square	97.5	%	97.5	%
Sierra Terrace	91.9	%	89.6	%
Sierra Village	85.1	%	87.7	%
The Commons	95.1	%	93.9	%
Water’s Edge	97.8	%	99.5	%
The Riley	94.7	%	—
Thornton Flats	97.1	%	88.5	%
Wayford at Concord	90.7	%	80.7	%

(1) The development had not commenced lease-up as of March 31, 2021.

(2) The development had not commenced lease-up as of December 31, 2020.