Other Expenses

3 Months Ended

Mar. 31, 2025

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 three months ended March 31, 2025 and 2024, we incurred $17.2 million and $18.9 million, respectively, of

management fees payable to our Manager. During the three months ended March 31, 2025 and 2024, we did not incur any

incentive fees payable to our Manager.

As of March 31, 2025 and December 31, 2024, we had accrued management fees payable to our Manager of $17.2 million

and $18.5 million, respectively.

General and Administrative Expenses

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

	Three Months Ended March 31,
	2025	2024
Professional services	$3,911	$4,140
Operating and other costs	1,788	1,476
Subtotal(1)	5,699	5,616
Non-cash compensation expenses
Restricted class A common stock earned	6,792	7,911
Director stock-based compensation	173	201
Subtotal	6,965	8,112
Total general and administrative expenses	$12,664	$13,728

(1)During the three months ended March 31, 2025 and 2024, we recognized an aggregate $87,000 and $223,000,

respectively, of expenses related to our Multifamily Joint Venture.