12. 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 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 years ended December 31, 2018, 2017, and 2016, we incurred management fees payable to our Manager of $47.0 million, $38.6 million, and $38.0 million, respectively. In addition, during the years ended December 31, 2018, 2017, and 2016, we incurred incentive fees payable to our Manager of $27.9 million, $16.2 million, and $18.0 million, respectively.

As of December 31, 2018 and 2017, we had accrued management and incentive fees payable to our Manager of $18.6 million and $14.3 million, respectively.

General and Administrative Expenses

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


	Year Ended December 31,
	2018		2017		2016
Professional services⁽¹⁾	$	4,437	$	3,812	$	3,311
Operating and other costs⁽¹⁾		2,938		1,903		2,147

Subtotal		7,375		5,715		5,458
Non-cash and CT Legacy Portfolio compensation expenses
Management incentive awards plan - CTOPI⁽²⁾		—		—		1,568
Management incentive awards plan - CT Legacy Partners⁽³⁾		—		—		1,094
Restricted class A common stock earned		27,654		23,593		19,052
Director stock-based compensation		500		438		375

Subtotal		28,154		24,031		22,089

Total BXMT expenses		35,529		29,746		27,547
Other expenses		—		176		169

Total general and administrative expenses	$	35,529	$	29,922	$	27,716

(1)

During the years ended December 31, 2018 and December 31, 2017, we recognized an aggregate $427,000 and $232,000, respectively, of expenses related to our Multifamily Joint Venture.

(2)

Represents the portion of CTOPI promote revenue recorded under compensation awards. See Note 4 for further discussion.

(3)

Represents the amounts recorded under the CT Legacy Partners management incentive awards during the period. See below for discussion of the CT Legacy Partners management incentive awards plan.

CT Legacy Partners Management Incentive Awards Plan

In conjunction with our March 2011 restructuring, we created an employee pool for up to 6.75% of the distributions paid to the common equity holders of our subsidiary, CT Legacy Partners (subject to certain caps and priority distributions). During the year ended December 31, 2016, we recognized $1.1 million of expenses under the CT Legacy Partners incentive plan. Our investment in CT Legacy Partners was substantially realized as of December 31, 2016.