Transactions With Related Parties

3 Months Ended

Mar. 31, 2020

Related Party Transactions [Abstract]

Transactions With Related Parties

16. TRANSACTIONS WITH RELATED PARTIES

We are managed by our Manager pursuant to the Management Agreement, the current term of which expires on December 19, 2020, and will be automatically renewed for a one-year term upon such date and each anniversary thereafter unless earlier terminated.

As of March 31, 2020 and December 31, 2019, our consolidated balance sheet included $19.3 million and $20.2 million of accrued management and incentive fees payable to our Manager, respectively. During the three months ended March 31, 2020, we paid aggregate management and incentive fees of $20.2 million to our Manager, compared to $18.6 million during the same period of 2019. In addition, during the three months ended March 31, 2020, we reimbursed our Manager for expenses incurred on our behalf of $218,000 compared to $188,000 during the same period of 2019.

As of March 31, 2020, our Manager held 936,653 shares of unvested restricted class A common stock, which had an aggregate grant date fair value of $32.1 million, and vest in installments over three years from the date of issuance. During the three months ended March 31, 2020 and 2019, we recorded non-cash expenses related to shares held by our Manager of $4.3 million and $3.8 million, respectively. Refer to Note 13 for further details on our restricted class A common stock.

An affiliate of our Manager is the special servicer of the CLOs. This affiliate did not earn any special servicing fees related to the CLOs during the three months ended March 31, 2020 or 2019.

During the three months ended March 31, 2020, we originated two loans whereby the respective borrowers engaged an affiliate of our Manager to act as title insurance agent in connection with these transactions. We did not incur any expenses or receive any revenues as a result of these transactions. There were no similar transactions during the three months ended March 31, 2019.

During the three months ended March 31, 2020 and 2019, we incurred expenses for various administrative, compliance, and capital market data services to third-party service providers that are affiliates of our Manager of $133,000 and $86,000, respectively.

In the first quarter of 2020, we acquired a $140.0 million interest in a total $421.5 million senior loan to a borrower that is partially owned by a Blackstone-advised investment vehicle. We will forgo all non-economic rights under the loan, including voting rights, so long as we are an affiliate of the borrower. The senior loan terms were negotiated by third parties without our involvement and our 33% interest in the senior loan was made on such market terms.

In the first quarter of 2019, we originated £240.1 million of a total £490.0 million senior loan to a borrower that is wholly owned by a Blackstone-advised investment vehicle. We will forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicle controls the borrower. The senior loan terms were negotiated by a third party without our involvement and our 49% interest in the senior loan was made on such market terms.