11. 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 net income (loss) prepared in accordance with GAAP, excluding (i) certain non-cash items (ii) the net income (loss) related to our legacy portfolio and (iii) incentive management fees.

During the three months ended March 31, 2018 and 2017, we incurred $11.1 million and $9.6 million, respectively, of management fees payable to our Manager. In addition, during the three months ended March 31, 2018 and 2017, we incurred $4.4 million and $3.3 million, respectively, of incentive fees payable to our Manager.

As of March 31, 2018 and December 31, 2017 we had accrued management and incentive fees payable to our Manager of $15.5 million and $14.3 million, respectively.

General and Administrative Expenses

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


	Three Months Ended March 31,
	2018		2017
Professional services⁽¹⁾	$	1,223	$	1,017
Operating and other costs⁽¹⁾		509		445

Subtotal		1,732		1,462
Non-cash compensation expenses
Restricted class A common stock earned		6,851		5,813
Director stock-based compensation		125		94

Subtotal		6,976		5,907

Total BXMT expenses		8,708		7,369
Other expenses		—		59

Total general and administrative expenses	$	8,708	$	7,428

(1)

During the three months ended March 31, 2018, we recognized an aggregate $101,000 of expenses related to our Multifamily Joint Venture. We did not recognize any expenses related to our Multifamily Joint Venture during the three months ended March 31, 2017.