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9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Receivables from Affiliates
Substantially all of the Company’s revenue is earned from its affiliates, including fund management fees, property management and leasing fees, construction management fees, development fees, transaction fees, insurance premiums, and real estate mortgage brokerage and administrative expense reimbursements. The related accounts receivable is included within receivables from affiliates within the condensed consolidated balance sheets.
The Company has investment management agreements with the funds that it manages. In accordance with these agreements, the funds may bear certain operating costs and expenses which are initially paid by the Company and subsequently reimbursed by the funds.
Employees and other related parties may be permitted to invest in Bridge funds alongside fund investors. Participation is limited to individuals who qualify under applicable securities laws. These funds generally do not require these individuals to pay management or performance fees. The Company considers its corporate professionals and non-consolidated funds to be affiliates.
Receivables from affiliates were comprised of the following as of September 30, 2024 and December 31, 2023 (in thousands):
For the nine months ended September 30, 2024, the Company recognized a credit loss of $2.4 million primarily related to receivables written off that were related to BOF I and certain related joint ventures. The majority of the $2.4 million credit loss was related to fund management fees and fund administration fees recognized in the first quarter of 2024, $1.7 million is presented as a contra revenue in fund management fees, $0.4 million is presented as a contra revenue in fund administration fees, and $0.3 million is included in general and administrative expenses on the consolidated statement of operations for the period then ended. The credit loss reserve was the result of unfavorable market conditions in the commercial office sector, including the lack of available debt and equity financing and illiquidity of the underlying assets.
Notes Receivable from Affiliates
As of September 30, 2024 and December 31, 2023, the Company had total notes receivable from affiliates of $40.3 million and $48.3 million, respectively. Refer to Note 6, “Notes Receivable from Affiliates” for additional information.
Due to Affiliates
As of September 30, 2024 and December 31, 2023, the Company had accrued $71.9 million and $69.5 million of due to affiliates, respectively, in connection with the TRA, which was included in due to affiliates on the condensed consolidated balance sheets for the periods then ended. Refer to Note 2, “Significant Accounting Policies,” and Note 14, “Income Taxes” for additional information.
All of the distributable earnings of the Operating Company prior to the IPO were payable to the Original Equity Owners. As of September 30, 2024 and December 31, 2023, there was $0.5 million of declared distributions that had not yet been distributed to Original Equity Owners.
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