Investment in Unconsolidated Entities

3 Months Ended

Mar. 31, 2021

Investment in Unconsolidated Entities

7. Investment in Unconsolidated Entities

The table below summarizes our investments in unconsolidated entities as of March 31, 2021 and December 31, 2020 (dollars in thousands):


	Participation /	Carrying value as of
	Ownership % (1)	March 31, 2021		December 31, 2020
Equity method investments:
Equity interest in a natural gas power plant	10%	$	24,840	$	25,095
Investor entity which owns equity in an online real estate company	50%		9,573		9,397
Equity interests in commercial real estate	50%		1,368		1,543
Equity interest in and advances to a residential mortgage originator (2)	N/A		18,458		17,852
Various (3)	15% - 50%		16,896		8,831
			71,135		62,718
Other equity investments:
Equity interest in a servicing and advisory business	2%		17,584		17,584
Investment funds which own equity in a loan servicer and other real estate assets	4% - 6%		7,267		7,267
Various, including Federal Home Loan Bank stock	0% - 2%		4,921		20,485
			29,772		45,336
		$	100,907	$	108,054

(1)	None of these investments are publicly traded and therefore quoted market prices are not available.

(2)	Includes a $4.5 million subordinated loan as of both March 31, 2020 and December 31, 2020.

(3)

In March 2021, we obtained 15% equity interests in two investor entities that own 49% equity interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. As discussed in Note 4, the equity interests in the entertainment and retail centers were transferred under pre-existing equity pledges of additional collateral for the commercial loan.

As of March 31, 2021, the carrying value of our equity investment in a residential mortgage originator exceeded the underlying equity in net assets of such investee by $1.6 million. This difference is the result of the Company recording its investment in the investee at its acquisition date fair value, which included certain non-amortizing intangible assets not recognized by the investee. Should the Company determine these intangible assets held by the investee are impaired, the Company will recognize such impairment loss through earnings from unconsolidated entities in our consolidated statement of operations, otherwise, such difference between the carrying value of our equity investment in the residential mortgage originator and the underlying equity in the net assets of the residential mortgage originator will continue to exist.

Other than our equity interest in the residential mortgage originator, there were no differences between the carrying value of our equity method investments and the underlying equity in the net assets of the investees as of March 31, 2021.

During the three months ended March 31, 2021, we did not become aware of (i) any observable price changes in our other equity investments accounted for under the fair value practicability election or (ii) any indicators of impairment.