BREIT 2017 Annual Report

60 Net Asset Value We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. The following table provides a breakdown of the major components of our NAV as of December 31, 2017 ($ and shares in thousands, except per share data): Components of NAV December 31, 2017 Investments in real properties $ 3,717,020 Investments in real estate-related securities 915,742 Cash and cash equivalents 31,166 Restricted cash 126,563 Other assets 27,752 Debt obligations (2,801,071) Subscriptions received in advance (107,576) Other liabilities (63,571) Accrued performance participation allocation (16,974) Management fee payable (1,904) Accrued stockholder servicing fees (1) (1,049) Non-controlling interests in joint ventures (25,826) Net Asset Value $ 1,800,272 Number of outstanding shares 170,384 (1) Stockholder servicing fees only apply to Class S, Class T, and Class D shares. See Reconciliation of Stockholders’ Equity to NAV below for an explanation of the difference between the $1.0 million accrued for purposes of our NAV and the $102.1 million accrued under U.S. GAAP. NAV Per Share Class S Shares Class T Shares Class D Shares Class I Shares Total Monthly NAV $ 1,375,651 $ 58,594 $ 41,415 $ 324,612 $ 1,800,272 Number of outstanding shares 130,085 5,625 3,955 30,719 170,384 NAV Per Share $ 10.5750 $ 10.4175 $ 10.4712 $ 10.5671 Set forth below are the weighted averages of the key assumptions in the discounted cash flow methodology used in the December 31, 2017 valuations, based on property types. Property Type Discount Rate Exit Capitalization Rate Multifamily 7.8% 5.7% Industrial 7.1% 6.6% Hospitality 9.7% 9.5% Retail 7.6% 6.2% These assumptions are determined by the Adviser and reviewed by our independent valuation advisor. A change in these assumptions would impact the calculation of the value of our property investments. For example, assuming all other factors remain unchanged, the changes listed below would result in the following effects on our investment values: Input Hypothetical Change Multifamily Investment Values Industrial Investment Values Hospitality Investment Values Retail Investment Values Discount Rate 0.25% decrease +1.8% +1.5% +0.9% +1.8% (weighted average) 0.25% increase (1.7%) (1.4%) (0.9%) (1.8%) Exit Capitalization Rate 0.25% decrease +2.9% +2.3% +1.9% +2.5% (weighted average) 0.25% increase (2.6%) (2.1%) (1.8%) (2.3%)