Other Expenses

12 Months Ended

Dec. 31, 2022

Other Income and Expenses [Abstract]

Other Expenses

OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and administrative expenses.

Management and Incentive Fees

Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a base management fee in an amount equal to 1.50% per annum multiplied by our outstanding equity balance, as defined in the Management Agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20% and (ii) the excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an amount equal to 7.00% per annum multiplied by our outstanding Equity, provided that our Core Earnings over the prior three-year period is greater than zero. Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv) net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.

During the years ended December 31, 2022, 2021, and 2020, we incurred $73.0 million, $64.2 million, and $60.4 million, respectively, of management fees payable to our manager. In addition, during the years ended December 31, 2022, 2021, and 2020, we incurred $37.3 million, $24.3 million, and $17.5 million, respectively, of incentive fees payable to our Manager. During the year ended December 31, 2020, we issued 840,696 shares of class A common stock to our Manager in satisfaction of our aggregate $19.3 million of management and incentive fees accrued in the first quarter of 2020.

As of December 31, 2022 and 2021 we had accrued management and incentive fees payable to our Manager of $33.8 million and $28.4 million, respectively.

General and Administrative Expenses

General and administrative expenses consisted of the following ($ in thousands):

	Year Ended December 31,
	2022		2021		2020
Professional services	$	10,924	$	7,759	$	7,324
Operating and other costs	7,855		3,762		4,015
Subtotal(1)	18,779		11,521		11,339
Non-cash compensation expenses
Restricted class A common stock earned	32,724		31,052		34,032
Director stock-based compensation	690		595		500
Subtotal	33,414		31,647		34,532
Total general and administrative expenses	$	52,193	$	43,168	$	45,871

(1)During the years ended December 31, 2022, 2021, and 2020, we recognized an aggregate $1.1 million, $748,000, and $1.1 million, respectively, of expenses related to our Multifamily Joint Venture.