Notes Receivable and Current Expected Credit Losses (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Summary of Notes Receivable Outstanding

The Company had the following notes receivable outstanding as of March 31, 2023 and December 31, 2022 ($ in thousands):

	Outstanding loan amount (a)										Interest compounding
Development Project	March 31, 2023		December 31, 2022		Maximum principal commitment			Interest rate
City Park 2	$	22,096	$	19,062	$	20,594		13.0	%		Annually
Solis Gainesville II	11,566		6,638		19,595			14.0	%	(b)	Annually
Interlock Commercial	88,858		86,584		107,000		(c)	15.0	%		None
Total mezzanine & preferred equity	122,520		112,284		$	147,189
Constellation Energy Building note receivable	—		12,834
Other notes receivable	11,671		11,512
Notes receivable guarantee premium	386		701
Allowance for credit losses(d)	(1,495)		(1,292)
Total notes receivable	$	133,082	$	136,039

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(a) Outstanding loan amounts include any accrued and unpaid interest, and accrued exit fees, as applicable.

(b) The interest rate varies over the life of the loan, and the Company also earns an unused commitment fee of 10%. Refer below under “Solis Gainesville II” for further details.

(c) This amount includes interest reserves.

(d) The amounts as of March 31, 2023 and December 31, 2022 exclude $0.2 million and $0.3 million of Current Expected Credit Losses ("CECL") allowance that relates to the unfunded commitments, which were recorded as a liability under Other liabilities in the consolidated balance sheets.

Summary of Interest Income

The Company recognized interest income for the three months ended March 31, 2023 and 2022 as follows (in thousands):

	Three Months Ended March 31,
Development Project	2023			2022
City Park 2	$	670	(a)	$	19	(a)
Solis Gainesville II	593		(a)(b)	—
Interlock Commercial	2,273		(a)	2,826		(a)
Nexton Multifamily	—			614
Total mezzanine	3,536			3,459
Other interest income	183			109
Total interest income	$	3,719		$	3,568

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(a) Includes recognition of interest income related to fee amortization.

(b) Includes recognition of unused commitment fees.

Allowance for Credit Losses on Financing Receivables

Changes in the allowance for the three months ended March 31, 2023 and 2022 were as follows (in thousands):

	Three Months Ended March 31, 2023						Three Months Ended March 31, 2022
	Funded		Unfunded		Total		Funded		Unfunded		Total
Beginning balance	$	1,292	$	338	$	1,630	$	994	$	10	$	1,004
Unrealized credit loss provision (release)	203		(140)		63		184		421		605
Ending balance	$	1,495	$	198	$	1,693	$	1,178	$	431	$	1,609