Other Expenses

12 Months Ended

Dec. 31, 2019

Other Income and Expenses [Abstract]

Other Expenses

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, 2019, 2018, and 2017, we incurred $55.3 million, $47.0 million, and $38.6 million, respectively, of management fees payable to our Manager. In addition, during the years ended December 31, 2019, 2018, and 2017, we incurred $23.2 million, $27.9 million, and $16.2 million, respectively, of incentive fees payable to our Manager.

As of December 31, 2019 and 2018 we had accrued management and incentive fees payable to our Manager of $20.2 million and $18.6 million, respectively.

General and Administrative Expenses

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

	Year Ended December 31,
	2019		2018		2017
Professional services(1)	$	5,163	$	4,437	$	3,812
Operating and other costs(1)		3,035		2,938		1,903
Subtotal		8,198		7,375		5,715
Non-cash compensation expenses
Restricted class A common stock earned		30,156		27,654		23,593
Director stock-based compensation		500		500		438
Subtotal		30,656		28,154		24,031
Total BXMT expenses		38,854		35,529		29,746
Other expenses		—		—		176
Total general and administrative expenses	$	38,854	$	35,529	$	29,922

(1) During the years ended December 31, 2019, 2018, and 2017, respectively, we recognized an aggregate $865,000, $427,000, and $232,000, respectively, of expenses related to our Multifamily Joint Venture. Such amounts are included in our consolidated general and administrative expenses.