Other Expenses

12 Months Ended

Dec. 31, 2020

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 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, 2020, 2019, and 2018, we incurred $60.4 million, $55.3 million, and $47.0 million, respectively, of management fees payable to our Manager. In addition, during the years ended December 31, 2020, 2019, and 2018, we incurred $17.5 million, $23.2 million, and $27.9 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, 2020 and 2019 we had accrued management and incentive fees payable to our Manager of $19.2 million and $20.2 million, respectively. 

General and Administrative Expenses

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

	Year Ended December 31,
	2020		2019		2018
Professional services(1)	$	7,324	$	5,163	$	4,437
Operating and other costs(1)		4,015		3,035		2,938
Subtotal		11,339		8,198		7,375
Non-cash compensation expenses
Restricted class A common stock earned		34,032		30,156		27,654
Director stock-based compensation		500		500		500
Subtotal		34,532		30,656		28,154
Total general and administrative expenses	$	45,871	$	38,854	$	35,529

(1) During the years ended December 31, 2020, 2019, and 2018, we recognized an aggregate $1.1 million, $865,000, and $427,000, respectively, of expenses related to our Multifamily Joint Venture.