Other Expenses

12 Months Ended

Dec. 31, 2024

Other Income and Expenses [Abstract]

Other Expenses

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 a management agreement between our Manager and us, or our Management Agreement, our Manager earns a base management fee in an amount equal to 1.50% per annum multiplied by our Equity, 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 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, 2024, 2023, and 2022, we incurred $74.8 million, $74.8 million, and $73.0 million, respectively, of management fees payable to our Manager. During the year ended December 31, 2024, we did not incur any incentive fees payable to our Manager. During the years ended December 31, 2023 and 2022, we incurred $44.2 million and $37.3 million, respectively, of incentive fees payable to our Manager.

As of December 31, 2024, we had accrued management fees payable to our Manager of $18.5 million. As of December 31, 2023, we had accrued management and incentive fees payable to our Manager of $26.3 million.

General and Administrative Expenses

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

	Year Ended December 31,
	2024		2023		2022
Professional services	$	15,176	$	13,269	$	10,924
Operating and other costs	6,918		7,219		7,855
Subtotal(1)	22,094		20,488		18,779
Non-cash compensation expenses
Restricted class A common stock earned	30,969		29,975		32,724
Director stock-based compensation	859		680		690
Subtotal	31,828		30,655		33,414
Total general and administrative expenses	$	53,922	$	51,143	$	52,193

(1)During the years ended December 31, 2024, 2023, and 2022, we recognized an aggregate $743,000, $1.2 million, and $1.1 million, respectively, of expenses related to our Multifamily Joint Venture.