BREIT 2017 Annual Report

F-15 The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter as of December 31, 2017 is as follows ($ in thousands): In-place Lease Intangibles Below-market Ground Lease Intangibles Above-market Lease Intangibles Pre-paid Ground Lease Intangibles Below-market Lease Intangibles 2018 $ 55,581 78 $ 1,334 $ 227 $ (2,868) 2019 9,039 79 1,109 227 (2,555) 2020 7,594 79 1,078 227 (2,281) 2021 6,385 79 1,041 227 (2,029) 2022 4,162 79 893 227 (1,425) Thereafter 3,912 4,144 615 14,828 (1,998) $ 86,673 $ 4,538 $ 6,070 $ 15,963 $ (13,156) 5. Investments in Real Estate-Related Securities The following table details the Company’s investments in real estate-related securities, which consisted solely of CMBS as of December 31, 2017 ($ in thousands): Number of Positions Credit Rating (1) Collateral Weighted Average Coupon (2) Weighted Average Maturity Date Face Amount Cost Basis Fair Value 15 BB Hospitality, Office, Residential, Retail L+3.21% 2/1/2033 $423,770 $423,658 $424,419 10 B Hospitality, Office, Residential L+4.05% 6/27/2034 284,371 284,127 285,037 9 BBB Office, Hospitality, Residential, Industrial, Retail L+2.28% 8/17/2032 194,013 193,838 194,549 3 Other Residential L+2.50% 9/15/2026 11,749 11,749 11,737 37 $913,903 $913,372 $915,742 (1) BBB represents credit ratings of BBB+, BBB, and BBB-, BB represents credit ratings of BB+, BB, and BB-, and B represents credit ratings of B+, B, and B-. Other consists of investments that, as of December 31, 2017, were either not ratable or have not been submitted to ratings agencies. (2) The term “L” refers to the three-month U.S. dollar-denominated London Interbank Offer Rate (“LIBOR”). As of December 31, 2017, three-month LIBOR was equal to 1.7%. As of December 31, 2017, the Company’s investments in real estate-related securities included 18 CMBS with a total cost basis of $559.6 million collateralized by properties owned by Blackstone-advised investment vehicles and three CMBS with a total cost basis of $63.5 million collateralized by a loan originated by a Blackstone-advised investment vehicle. Such CMBS were purchased in fully or over-subscribed offerings. Each investment in such CMBS by Blackstone and its affiliates (including the Company) represented a minority participation in any individual tranche. The Company acquired its minority participation interests from third-party investment banks on market terms negotiated by the majority third-party investors. Blackstone and its affiliates (including the Company) will forgo all non-economic rights (including voting rights) in such CMBS as long as the Blackstone-advised investment vehicles either own the properties collateralizing, loans underlying, or have an interest in a different part of the capital structure related to such CMBS. For the year ended December 31, 2017, the Company recorded interest income of $10.2 million and an unrealized gain of $1.9 million related to its investments in such CMBS. Such amounts were reported as a component of Income From Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. As described in Note 2, the Company classifies its investments in real estate-related securities as trading and records these investments at fair value in Real Estate-Related Securities on the Company’s Consolidated Balance Sheets. During the year ended December 31, 2017, the Company recorded an unrealized gain of $2.4 million as a component of Income From Real Estate-Related Securities in the Company’s Consolidated Statements of Operations. During the year ended December 31, 2017, one of the Company’s CMBS investments was fully repaid and two of the Company’s investments partially repaid. As such, the Company recorded a realized loss of $0.2 million as a component of Income From Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. The Company did not sell any securities during the year ended December 31, 2017.