Quarterly report pursuant to Section 13 or 15(d)

Investments

v3.21.2
Investments
9 Months Ended
Sep. 30, 2021
Schedule of Investments [Line Items]  
Investments
5.
INVESTMENTS

The Company has interests in 144 partnership or joint venture entities. The limited liability companies and limited partnerships in which the Company is the general partner are generally engaged directly or indirectly in the acquisition, development, operation and ownership of real estate. The accounting principles of these entities are substantially the same as those of the Company. Additionally, the Company has direct investments in several funds, including certain Bridge-sponsored funds. The Company’s investments are summarized below:

 

 

 

 

 

Carrying Value at

 

(in thousands)

 

 

 

September 30,

 

 

December 31,

 

Investments

 

 

 

2021

 

 

2020

 

Accrued performance allocations

 

(1)

 

$

301,910

 

 

$

199,410

 

Partnership interest in Company sponsored funds

 

(2)

 

 

27,871

 

 

 

12,975

 

Investments in third-party partnership

 

(3)

 

 

6,393

 

 

 

2,697

 

Other investments

 

(4)

 

 

4,221

 

 

 

345

 

 

 

 

 

$

340,395

 

 

$

215,427

 

 

(1)
Represents an investment in carried interest in the funds. There is a disproportionate allocation of returns to the Company as general partner or equivalent based on the extent to which cumulative performance of the fund exceeds minimum return hurdles. Investment is valued using NAV of the respective vehicle.
(2)
Investments in the funds and limited partnership interest, included in “other investments” on the consolidated balance sheet, are valued using NAV of the respective vehicle.
(3)
Investments in limited partnership interest in third-party private proptech venture capital firms, included in “other investments” on the consolidated balance sheet. Valued using NAV of the respective vehicle.
(4)
Other investments, included in “other investments” on the balance sheet, are accounted for using the measurement alternative to measure at cost adjusted for any impairment and observable price changes.

Fair value of the investments is reported on a three-month lag from the fund financial statements due to timing of the information provided by the funds and third-party entities unless information is available on a more-timely basis.

The Company’s equity method investments include investments that are not consolidated, but over which the Company exerts significant influence. The Company evaluates each of its equity method investments to determine if any were significant as defined by guidance from the Securities Exchange Commission. At September 30, 2021, the Company’s investment in Bridge Multifamily Fund III and Bridge Multifamily Fund IV represented 12% and 16% of total assets, respectively. No other investment represented greater than 10% of total assets.

The following table presents financial information of our significant equity investment in Bridge Multifamily Fund III:

 

(in thousands)

 

Three Months Ended

 

Investment income

 

September 30, 2021

 

 

September 30, 2020

 

Net earnings from investments in real estate

 

$

5,154

 

 

$

543

 

Interest and other income

 

 

15

 

 

 

 

Total investment income

 

 

5,169

 

 

 

543

 

Expenses

 

 

 

 

 

 

Management fees

 

 

1,496

 

 

 

60

 

Partnership expense

 

 

570

 

 

 

42

 

Total expenses

 

 

2,066

 

 

 

102

 

Net investment income

 

 

3,103

 

 

 

441

 

 

 

 

 

 

 

 

Net realized gain on investments in real estate

 

 

90,752

 

 

 

50

 

Changes in unrealized gain on investments in real estate

 

 

41,445

 

 

 

873

 

Unrealized gain on interest rate swap

 

 

1,023

 

 

 

 

Net gain on investments

 

 

133,220

 

 

 

923

 

Net increase in partnersʼ capital resulting from operations

 

$

136,323

 

 

$

1,364

 

 

 

(in thousands)

 

Nine Months Ended

 

Investment income

 

September 30, 2021

 

 

September 30, 2020

 

Net earnings from investments in real estate

 

$

18,716

 

 

$

722

 

Interest and other income

 

 

26

 

 

 

12

 

Total investment income

 

 

18,742

 

 

 

734

 

Expenses

 

 

 

 

 

 

Management fees

 

 

4,796

 

 

 

187

 

Partnership expense

 

 

1,198

 

 

 

326

 

Interest expense

 

 

25

 

 

 

1

 

Total expenses

 

 

6,019

 

 

 

514

 

Net investment income

 

 

12,723

 

 

 

220

 

 

 

 

 

 

 

 

Net realized gain on investments in real estate

 

 

209,867

 

 

 

4,192

 

Changes in unrealized gain on investments in real estate

 

 

63,187

 

 

 

(1,489

)

Unrealized gain on interest rate swap

 

 

3,952

 

 

 

 

Net gain on investments

 

 

277,006

 

 

 

2,703

 

Net increase in partnersʼ capital resulting from operations

 

$

289,729

 

 

$

2,923

 

 

The following table presents financial information of our significant equity investment in Bridge Multifamily Fund IV:

 

(in thousands)

 

Three Months Ended

 

Investment income

 

September 30, 2021

 

 

September 30, 2020

 

Net earnings from investments in real estate

 

$

18,189

 

 

$

15,169

 

Interest and other income

 

 

136

 

 

 

1

 

Total investment income

 

 

18,325

 

 

 

15,170

 

Expenses

 

 

 

 

 

 

Management fees

 

 

3,822

 

 

 

4,767

 

Partnership expense

 

 

1,617

 

 

 

494

 

Interest expense

 

 

57

 

 

 

110

 

Total expenses

 

 

5,496

 

 

 

5,371

 

Net investment income

 

 

12,829

 

 

 

9,799

 

 

 

 

 

 

 

 

Changes in unrealized gain on investments in real estate

 

 

366,490

 

 

 

45,681

 

Net gain on investments

 

 

366,490

 

 

 

45,681

 

Net increase in partnersʼ capital resulting from operations

 

$

379,319

 

 

$

55,480

 

 

 

 

 

 

 

 

(in thousands)

 

Nine Months Ended

 

Investment income

 

September 30, 2021

 

 

September 30, 2020

 

Net earnings from investments in real estate

 

$

51,268

 

 

$

27,185

 

Interest and other income

 

 

241

 

 

 

2

 

Total investment income

 

 

51,509

 

 

 

27,187

 

Expenses

 

 

 

 

 

 

Management fees

 

 

12,576

 

 

 

14,414

 

Partnership expense

 

 

2,585

 

 

 

1,474

 

Interest expense

 

 

912

 

 

 

920

 

Total expenses

 

 

16,073

 

 

 

16,808

 

Net investment income

 

 

35,436

 

 

 

10,379

 

 

 

 

 

 

 

 

Changes in unrealized gain on investments in real estate

 

 

693,496

 

 

 

120,013

 

Net gain on investments

 

 

693,496

 

 

 

120,013

 

Net increase in partnersʼ capital resulting from operations

 

$

728,932

 

 

$

130,392