BREIT 2017 Annual Report

77 Cash flows provided by financing activities were $4.4 billion for the year ended December 31, 2017, primarily due to the $1.7 billion of net proceeds we received from the issuance of our common stock and $2.6 billion of net borrowings under our mortgage notes, term loans, affiliate line of credit, and repurchase agreements. From March 2, 2016 (date of our initial capitalization) through December 31, 2016, we had not commenced our principal operations and as such, comparative results have not been analyzed. Critical Accounting Policies The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America (“GAAP”) involve significant judgments and assumptions and require estimates about matters that are inherently uncertain. These judgments will affect our reported amounts of assets and liabilities and our disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. With different estimates or assumptions, materially different amounts could be reported in our consolidated financial statements. We consider our accounting policies over investments in real estate and lease intangibles, investments in securities, and revenue recognition to be our critical accounting policies. See Note 2 to our consolidated financial statements for further descriptions of such accounting policies. Recent Accounting Pronouncements See Note 2 — “Summary of Significant Accounting Policies” to our consolidated financial statements in this annual report on Form 10-K for a discussion concerning recent accounting pronouncements. Off-Balance Sheet Arrangements We currently have no off-balance sheet arrangements that are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. Contractual Obligations The following table aggregates our contractual obligations and commitments with payments due subsequent to December 31, 2017 ($ in thousands). Obligations Total Less than 1 year 1-3 years 3-5 years More than 5 years Indebtedness (1) $ 3,342,620 $ 785,516 $ 344,536 $ 630,465 $ 1,582,103 Ground leases 14,269 240 480 480 13,069 Organizational and offering costs 10,160 2,032 4,064 4,064 — Other 5,383 — 1,015 2,128 2,240 Total $ 3,372,432 $ 787,788 $ 350,095 $ 637,137 $ 1,597,412 (1) The allocation of our indebtedness includes both principal and interest payments based on the current maturity date and interest rates in effect at December 31, 2017.