BREIT 2017 Annual Report

61 The following table reconciles stockholders’ equity per our consolidated balance sheet to our NAV ($ in thousands): Reconciliation of Stockholders’ Equity to NAV December 31, 2017 Stockholders’ equity under U.S. GAAP $ 1,485,791 Adjustments: Accrued stockholder servicing fee 101,027 Organization and offering costs 10,160 Unrealized real estate appreciation 82,411 Accumulated depreciation and amortization 120,883 NAV $ 1,800,272 The following details the adjustments to reconcile GAAP stockholders’ equity to our NAV: - Accrued stockholder servicing fee represents the accrual for the full cost of the stockholder servicing fee for Class S, Class T, and Class D shares. Under GAAP, we accrued the full cost of the stockholder servicing fee payable over the life of each share (assuming such share remains outstanding the length of time required to pay the maximum stockholder servicing fee) as an offering cost at the time we sold the Class S, Class T, and Class D shares. Refer to Note 2 to our consolidated financial statements for further details of the GAAP treatment regarding the stockholder servicing fee. For purposes of NAV we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. - The Adviser agreed to advance certain organization and offering costs on our behalf through December 31, 2017. Such costs will be reimbursed to the Adviser pro rata over 60 months beginning January 1, 2018. Under GAAP, organization costs are expensed as incurred and offering costs are charged to equity as such amounts are incurred. For NAV, such costs will be recognized as a reduction to NAV as they are reimbursed ratably over 60 months. - Our investments in real estate are presented under historical cost in our GAAP consolidated financial statements. Additionally, our mortgage notes, term loans, revolving credit facilities, and repurchase agreements (“Debt”) are presented at their carrying value in our consolidated GAAP financial statements. As such, any increases in the fair market value of our investments in real estate or our Debt are not included in our GAAP results. For purposes of determining our NAV, our investments in real estate and our Debt are recorded at fair value. - In addition, we depreciate our investments in real estate and amortize certain other assets and liabilities in accordance with GAAP. Such depreciation and amortization is not recorded for purposes of determining our NAV. Distributions Beginning March 31, 2017 we declared monthly distributions for each class of our common stock which are generally paid 20 days after month-end. Each class of our common stock receives the same gross distribution per share. The net distribution varies for each class based on the applicable stockholder servicing fee, which is deducted from the monthly distribution per share and paid directly to the applicable distributor. We did not sell any Class D or Class T shares prior to May 2017 and June 2017, respectively, thus no distributions were made for such classes of shares prior to such dates. The table below details the net distribution for each of our share classes for the year ended December 31, 2017. Declaration Date Class S Shares Class T Shares Class D Shares Class I Shares March 31, 2017 $ 0.0250 $ — $ — $ 0.0412 April 30, 2017 0.0292 — — 0.0362 May 31, 2017 0.0368 — 0.0420 0.0441 June 30, 2017 0.0445 0.0446 0.0496 0.0517 July 31, 2017 0.0428 0.0429 0.0479 0.0501 August 31, 2017 0.0430 0.0431 0.0483 0.0505 September 30, 2017 0.0434 0.0435 0.0485 0.0507 October 31, 2017 0.0436 0.0437 0.0490 0.0512 November 30, 2017 0.0438 0.0439 0.0490 0.0511 December 31, 2017 0.0438 0.0439 0.0492 0.0514 Total $ 0.3959 $ 0.3056 $ 0.3835 $ 0.4782

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