Note 11 - Investments in Equity Method Affiliates

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

11. INVESTMENTS IN EQUITY METHOD AFFILIATES  

Equity method accounting requires that the Company record its investments in equity method affiliates on the consolidated balance sheets and recognize its share of the equity method affiliates’ net income as earnings each reporting period. The Company elected to use the cumulative earnings approach for the distributions it receives from its equity method investments. Under the cumulative earnings approach, any distributions received up to the amount of cumulative earnings are treated as return on investment and classified in operating activities within the statement of cash flows. Any excess distributions would be considered as return of investment and classified in investing activities.

The Company has certain equity method affiliates for which it has elected the fair value option.  Those investees are excluded from the table below.  Those investees are included as a component of other investments, at fair value in the consolidated balance sheets.  All gains and losses (unrealized and realized) from securities classified as other investments, at fair value in the consolidated balance sheets are recorded as a component of principal transactions and other income in the consolidated statement of operations. See notes 8 and 24.

The following table summarizes the activity and earnings in the Company’s investments that are accounted for under the equity method.

INVESTMENTS IN EQUITY METHOD AFFILIATES

(Dollars in Thousands)

	Dutch Real Estate Entities			SPAC Sponsor Entities and Other			Total
January 1, 2024	$	5,864		$	8,377		$	14,241
Investments / advances		-			193			193
Distributions / repayments		-			(978	)		(978	)
Reclasses to (from)		-			(9,669	)		(9,669	)
Earnings / (loss) recognized		(344	)		22,710			22,366
September 30, 2024	$	5,520		$	20,633		$	26,153

	Dutch Real Estate Entities		SPAC Sponsor Entities and Other			Total
January 1, 2023	$	5,530	$	3,399		$	8,929
Investments / advances		-		1,806			1,806
Distributions / repayments		-		(5	)		(5	)
Reclasses to (from)		-		(362	)		(362	)
Earnings / (loss) recognized		72		(1,680	)		(1,608	)
September 30, 2023	$	5,602	$	3,158		$	8,760

Dutch Real Estate Entities include: (i) Amersfoort Office Investment I Cooperatief U. A. (“AOI”), a company based in the Netherlands that invests in real estate, and (ii) CK Capital Partners B.V. (“CK Capital”), a company based in the Netherlands that manages investments in real estate.  See note 24.  The amounts included as SPAC Sponsor Entities and Other represent the Company's investment in SPAC sponsor entities that have not yet completed a business combination or from SPAC sponsor entities that have completed business combinations but have not yet distributed shares to sponsor investors and other equity method investments.  If these SPAC sponsor entities are unsuccessful in completing a business combination and the underlying SPAC liquidates, the Company will likely receive no distributions in kind or in cash related to these investments and the remaining balances will be recorded as a component of loss from equity method investments in the consolidated statement of operations.