Investment in Unconsolidated Entities

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Entities

Investments in Unconsolidated Entities

The table below summarizes our investments in unconsolidated entities as of December 31, 2023 and 2022 (dollars in thousands):

	Participation / Ownership % (1)	Carrying value as of
		December 31, 2023		December 31, 2022
Equity method investments:
Equity interests in two natural gas power plants	10% - 12%	$	52,230	$	46,618
Investor entity which owns equity in an online real estate company	50%	5,575		5,457
Equity interest in a residential mortgage originator (2)	N/A	—		1,449
Various	20% - 50%	16,854		15,377
		74,659		68,901
Other equity investments:
Equity interest in a servicing and advisory business	2%	12,955		12,955
Investment funds which own equity in a loan servicer and other real estate assets	4% - 6%	842		940
Investor entities which own equity interests in two entertainment and retail centers (3)	15%	146		7,322
Various	1% - 3%	1,774		1,774
		15,717		22,991
		$	90,376	$	91,892

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

(2)In January 2023, we sold our ownership interest to an unaffiliated third party. During the year ended December 31, 2022, we reduced the carrying value of our investment to the estimated net proceeds to be received.

(3)In March 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. During the year ended December 31, 2023, we received distributions totaling $54.9 million, which reduced the carrying values of both the loan (including previously accrued interest) and one of the equity interests by $47.7 million and $7.2 million, respectively. This distribution reduced our basis in one of the investor entities to a balance of zero, while the second investor entity basis was unchanged. See further discussion in Note 5.

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 December 31, 2023.

During the year ended December 31, 2023, 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.