v3.26.1
Other Expenses
6 Months Ended
Jun. 30, 2026
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 and six months ended June 30, 2026, we incurred $14.6 million and $29.5 million, respectively, of
management fees payable to our Manager compared with $17.0 million and $34.3 million, respectively, during the same
periods in 2025. During the three and six months ended June 30, 2026 and 2025, we did not incur any incentive fees
payable to our Manager.
As of June 30, 2026 and December 31, 2025, we had accrued management fees payable to our Manager of $14.6 million
and $16.4 million, respectively.
General and Administrative Expenses
General and administrative expenses consisted of the following ($ in thousands):
Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
2026
2025
Professional services
$4,861
$4,281
$9,992
$8,192
Operating and other costs
3,382
1,942
5,545
3,730
Subtotal
8,243
6,223
15,537
11,922
Non-cash compensation expenses
Restricted class A common stock earned
6,476
7,131
12,965
13,923
Director stock-based compensation
199
172
397
345
Subtotal
6,675
7,303
13,362
14,268
Total general and administrative expenses
$14,918
$13,526
$28,899
$26,190