Investment in Unconsolidated Entities

9 Months Ended

Sep. 30, 2021

Equity Method Investments and Joint Ventures [Abstract]

The table below summarizes our investments in unconsolidated entities as of September 30, 2021 and December 31, 2020 (dollars in thousands):


	Participation / Ownership % (1)	Carrying value as of
		September 30, 2021		December 31, 2020
Equity method investments:
Equity interest in a natural gas power plant	10%	$	25,170	$	25,095
Investor entity which owns equity in an online real estate company (2)	50%	5,142		9,397
Equity interests in commercial real estate	50%	975		1,543
Equity interest in and advances to a residential mortgage originator (3)	N/A	19,376		17,852
Various	25% - 50%	11,166		8,831
		61,829		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
Investor entities which own equity interests in two entertainment and retail centers (4)	15%	7,320		—
Federal Home Loan Bank stock	N/A	—		20,485
		32,171		45,336
		$	94,000	$	108,054

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

(2)During the three and nine months ended September 30, 2021, we received a capital distribution of $4.5 million, which reduced our carrying value.

(3)Includes a $4.5 million subordinated loan as of both September 30, 2021 and December 31, 2020.

(4)During the nine months ended September 30, 2021, we obtained equity interests in two investor entities that own interests in two entertainment and retail centers in satisfaction of $7.3 million principal amount of a commercial loan. The interests were obtained in order to facilitate repayment of a portion of that loan for which these interests represented underlying collateral. The interests are entitled to preferred treatment in the distribution waterfall and are intended to repay us the $7.3 million principal amount of the loan plus interest. See further discussion in Note 4.

As of September 30, 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 September 30, 2021.

During the three and nine months ended September 30, 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.