| Preferred Equity Investments |
Note 8 – Preferred Equity Investments At June 30, 2026, the Company, through wholly-owned subsidiaries of the Operating Partnership, had entered into five joint venture agreements for preferred equity investments which are classified as available-for-sale debt securities. The Company earns a fixed return on these investments which is included within income from preferred equity investments on its consolidated statements of operations and comprehensive income (loss). Each joint venture’s purpose is to develop or operate a portfolio of residential units. The carrying amount of the Company’s preferred equity investments at June 30, 2026 and December 31, 2025 is summarized in the table below (amounts in thousands): | | | | | | | | | June 30, | | December 31, | Investment Name | | 2026 | | 2025 | Archer at RiverBlue | | $ | 2,955 | | $ | — | Canvas at Wildwood | | | 14,669 | | | 9,862 | River Ford | | | 6,161 | | | 5,391 | Sanford Marketplace | | | 16,211 | | | 5,044 | Wayford at Innovation Park | | | 15,400 | | | 15,400 | Total | | $ | 55,396 | | $ | 35,697 | Gross unrealized gain, net | | | 169 | | | 41 | Total, net | | $ | 55,565 | | $ | 35,738 |
The following table summarizes the net carrying amount and fair value of the Company’s preferred equity investments, which are classified as available-for-sale debt securities, by contractual maturity at June 30, 2026 (amounts in thousands): | | | | | | | | | Available-for-sale | | | Net carrying amount | | Fair value | Due within one year | | $ | 21,550 | | $ | 21,550 | Due after one year through three years | | | 34,015 | | | 34,015 | Due after three years | | | — | | | — | Total | | $ | 55,565 | | $ | 55,565 |
The following table summarizes the Company’s income from preferred equity investments for the three and six months ended June 30, 2026 and 2025 (amounts in thousands): | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | Investment Name | | 2026 | | 2025 | | 2026 | | 2025 | Archer at RiverBlue | | $ | 80 | | $ | — | | $ | 83 | | $ | — | Canvas at Wildwood | | | 639 | | | 154 | | | 1,118 | | | 266 | Chandler (1) | | | — | | | 512 | | | — | | | 1,018 | Indigo Cove (2) | | | — | | | 20 | | | — | | | 200 | River Ford | | | 313 | | | 220 | | | 593 | | | 404 | Sanford Marketplace | | | 492 | | | — | | | 757 | | | — | The Cottages at Myrtle Beach (1) | | | — | | | 166 | | | — | | | 815 | The Cottages of Port St. Lucie (1) | | | — | | | 689 | | | — | | | 1,370 | Wayford at Innovation Park | | | 509 | | | 507 | | | 1,013 | | | 965 | Wayford at Pringle (2) | | | — | | | 38 | | | — | | | 378 | Total income from preferred equity investments (3) | | $ | 2,033 | | $ | 2,306 | | $ | 3,564 | | $ | 5,416 |
| (1) | The Company’s preferred equity investments were fully redeemed in 2025 as follows: Chandler in November, The Cottages at Myrtle Beach in April, and The Cottages of Port St. Lucie in July. |
| (2) | In April 2025, the Company’s preferred equity interests in Indigo Cove and Wayford at Pringle were sold. |
| (3) | Total income from preferred equity investments includes both current and accrued income amounts. For the three and six months ended June 30, 2026 and 2025, the accrued portion of total income was $2.0 million and $2.1 million, and $3.6 million and $4.0 million, respectively. At June 30, 2026 and December 31, 2025, the Company had $11.4 million and $7.9 million, respectively, of total accrued preferred equity income, which is recorded in accounts receivable, prepaids and other assets, net on its consolidated balance sheets. |
Preferred Equity Investment Summary In February 2026, the Company increased its original capital commitment for preferred equity interests in Canvas at Wildwood by $1.5 million, increasing its total investment to $16.1 million. As of June 30, 2026, the Company funded $40.0 million of its $48.8 million aggregate commitment to fund capital for preferred equity interests in Archer at RiverBlue, Canvas at Wildwood, River Ford, and Sanford Marketplace.
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