Related Party Transactions |
6 Months Ended |
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Jun. 30, 2025 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | 4.Related
Party Transactions
We engage in certain business transactions with related parties, including investment in notes receivables. Transactions involving related parties cannot be presumed to be carried out on at arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities. Related party transactions may not always be favorable to our business and may include terms, conditions and agreements that are not necessarily beneficial to or in our best interest.
Pillar is a wholly owned subsidiary of the May Realty Holdings, Inc., which owns approximately 90.8% of ARL, which owns approximately 78.4% of TCI, which owns approximately 84.5% of the Company.
Advisory fees paid to Pillar were $23 and $21 for the three months ended June 30, 2025 and 2024, respectively, and $50 and $50 for the six months ended June 30, 2025 and 2024, respectively.
Our note receivable is held by UHF (See Note 3 – Notes Receivable). UHF is determined to be a related party due to our significant investment in the performance of the collateral secured by the notes receivable. Interest income on these notes was $122 and $149 for the three months ended June 30, 2025 and 2024, respectively, and $246 and $299 for the six months ended June 30, 2025 and 2024, respectively.
Receivables from related parties were $112,332 and $110,481 at June 30, 2025 and December 31, 2024, respectively; which represents amounts outstanding advanced to Pillar net of unreimbursed fees (“Pillar Receivable”), which bears interest in accordance with a cash management agreement. On January 1, 2024, an amendment to the cash management agreement changed the interest rate on the Pillar Receivable from prime plus one percent to SOFR. Interest income on related party receivables was $1,233 and $1,436 for the three months ended June 30, 2025 and 2024, respectively, and $2,456 and $2,872 for the six months ended June 30, 2025 and 2024, respectively.
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