RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2021

Pursuant to the terms of these the advisory agreements, summarized below are the related-party costs incurred by the Company for the three and six months ended June 30, 2021 and 2020, respectively, and any related amounts payable as of June 30, 2021 and December 31, 2020 (in thousands):


	Incurred								Payable as of
	Three Months Ended June 30,				Six Months Ended June 30,				June 30, 2021		December 31, 2020
Expensed	2021		2020		2021		2020
Asset management fees	$	3,527	$	2,336	$	7,380	$	4,441	$	1,241	$	2,837
Property management fees (1)	123		—		243		—		—		—
Reimbursable operating expenses (2)	—		—		—		93		—		—
Disposition fees (3)	504		—		504		—		—		—
Change in subordinated performance fee due upon termination to affiliate (4)	(261)		307		200		307		(3)		(3)
Capitalized
Acquisition fees on real estate equity securities	—		23		—		122		—		5
Acquisition fees on real estate (5)	—		171		20		171		20		—

Acquisition fee on investment in unconsolidated entities	16		—		45		—		16		—
	$	3,909	$	2,837	$	8,392	$	5,134	$	1,277	$	2,842

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(1) Property management fees are for single-family homes under PORT and paid to DayMark. These fees are included in the line item “Operating, maintenance, and management cost” in the consolidated statement of operations.

(2) The Advisor may seek reimbursement for certain employee costs under the Advisory Agreement. The Company will not reimburse for employee costs in connection with services for which the Advisor earns acquisition, origination or disposition fees (other than reimbursement of travel and communication expenses) or for the salaries or benefits the Advisor or its affiliates may pay to the Company’s executive officers. In addition to the amounts above, the Company reimburses the Advisor for certain of the Company’s direct costs incurred from third parties that were initially paid by the Advisor on behalf of the Company.

(3) Disposition fees with respect to real estate sold are included in the gain on sale of real estate in the accompanying consolidated statements of operations.

(4) Change in estimate of fees payable to KBS Capital Advisors due to the termination of the former advisory agreement with KBS Capital Advisors. See “Subordinated Performance Fee Due Upon Termination to KBS Capital Advisors”, below, for more details.

(5) Acquisition fees associated with asset acquisitions are capitalized, while costs associated with business combinations expensed as incurred.