Note 7 - Other Assets

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Other Assets Disclosure [Text Block]

7. Other Assets

The Company’s other assets consisted of the following (in thousands):

	September 30,		December 31,
	2024		2023
Prepaid assets	$	6,426		9,509
Equity investments - cost method		2,374		2,439
Loans receivable		2,112		2,176
Interest rate cap		357		697
Certificate of deposit (1)		5,143		—
Receivables from related parties		1,982		2,209
Other		3,291		2,561
Total other assets	$	21,685		19,591

(1)  The certificate of deposit has an original term of six months bears interest at a rate of 5.75%, and it has a current maturity date of January 5, 2025.

Equity Investments – Cost Method

The Company has equity investments in limited partnerships that are accounted for under the cost method of accounting. The fair values of these equity investments are not reasonably determinable, and there are not observable price changes in orderly transactions for identical or similar equity investments. As a result, the Company recognizes and measures these investments at cost, less impairments, if any. The Company evaluates its cost method investments to determine whether identified events or changes in circumstances indicate that the fair value of an investment is less than its carrying amount and that the investment is impaired.

Loans Receivable

The Company has investments in portfolios of residential loans collateralized by mortgages serviced by financial institutions. The following table presents the carrying value of the Company’s loans receivable by loan type (in thousands):

	September 30,		December 31,
	2024		2023
First mortgage residential loans	$	1,942		2,005
Second mortgage residential loans		170		171
Total residential loans	$	2,112		2,176

As of September 30, 2024 and December 31, 2023, $1.5 million of the loans receivable were greater than 90 days past due, and as of September 30, 2024, $1.3 million of the loans receivable were in the process of foreclosure. The Company recognizes interest income on loans receivable on a cash basis as the residential loans are collateral dependent.

Pursuant to the servicing agreements for these loans, the financial institutions are required to advance principal and interest on delinquent loans to the Company up to the collateral value of the delinquent loans as determined by the financial institutions. Included in other liabilities as of each of September 30, 2024 and December 2023 was $2.2 million of principal and interest advances from financial institutions relating to delinquent loans.

Interest Rate Cap

The Altis Grand Kendall joint venture entered into an interest rate cap contract as an economic hedge for which hedge accounting was not elected, and the changes in the fair value of the interest rate cap are recognized in other income in the Company’s statements of operations and comprehensive loss.