breit-10k_20191231.htm

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. Yes ☐ No ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes ☐ No ☒

As of March 24, 2020, the issuer had the following shares outstanding: 631,993,567 shares of Class S common stock, 801,713,070 shares of Class I common stock, 44,797,961 shares of Class T common stock, and 99,322,077 shares of Class D common stock.

Part III of this annual report on Form 10-K incorporates information by reference from the registrant’s definitive proxy statement with respect to its 2020 annual meeting of stockholders to be filed with the Securities and Exchange Commission within 120 days after the close of the registrant’s fiscal year.

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar words or the negatives thereof. These may include our financial projections and estimates and their underlying assumptions, statements about plans, objectives and expectations with respect to future operations, statements with respect to acquisitions and statements regarding future performance. Such forward-looking statements are inherently uncertain and there are or may be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. We believe these factors also include but are not limited to those described under the section entitled “Risk Factors” in our prospectus and any such updated factors included in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or our prospectus and other filings). Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. You should carefully review Item 1A — “Risk Factors” section of this Annual Report on Form 10-K for a discussion of the risks and uncertainties that we believe are material to our business, operating results, prospects and financial condition. Except as otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

References herein to “Blackstone Real Estate Income Trust,” the “Company,” “BREIT,” “we,” “us,” or “our” refer to Blackstone Real Estate Income Trust, Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise.

BREIT invests primarily in stabilized income-generating commercial real estate in the United States and, to a lesser extent, real estate debt. Our objective is to bring Blackstone’s leading institutional quality real estate investment platform to income focused investors. We are externally managed by BX REIT Advisors L.L.C. (the “Adviser”), a subsidiary of The Blackstone Group Inc. (“Blackstone”). We were incorporated in Maryland in 2015. We are the sole general partner of BREIT Operating Partnership L.P. (“BREIT OP”), a Delaware limited partnership, and we own substantially all of our assets through BREIT OP. We currently operate our business in eight reportable segments: Industrial, Multifamily, Net Lease, Hotel, Retail, Office and Other Properties, and real estate debt. Multifamily includes various forms of rental housing including apartments, student housing and manufactured housing. Other Properties includes self-storage properties. Net Lease includes the real estate assets of The Bellagio Las Vegas (“Bellagio”).

BREIT is a non-exchange traded, perpetual life real estate investment trust (“REIT”). We qualified as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) for U.S. federal income tax purposes and generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.

We had registered with the Securities and Exchange Commission (the “SEC”) an offering of up to $5.0 billion in shares of common stock (the “Initial Offering”) and accepted aggregate gross offering proceeds of $4.9 billion during the period January 1, 2017 to January 1, 2019. We subsequently registered with the SEC a follow-on offering of up to $12.0 billion in shares of common stock (in any combination of purchases of Class S, Class I, Class T, and Class D shares of our common stock), consisting of up to $10.0 billion in shares in our primary offering and up to $2.0 billion in shares pursuant to our distribution reinvestment plan, which we began using to offer shares of our common stock in January 2019 (the “Current Offering” and with the Initial Offering, the “Offering”). The share classes have different upfront selling commissions and ongoing stockholder servicing fees.

As of March 24, 2020, we had received net proceeds of $17.5 billion from selling an aggregate of 1,588,293,255 shares of our common stock (consisting of 643,054,511 Class S shares, 798,498,578 Class I shares, 46,710,253 Class T shares, and 100,029,913 Class D shares) in the Offering and otherwise. We have primarily used the net proceeds to make investments in real estate and real estate debt.

We are externally managed by our Adviser, and pursuant to the advisory agreement between us and the Adviser (the “Advisory Agreement”), we have delegated to the Adviser the authority to source, evaluate and monitor our investment opportunities and to make decisions related to the acquisition, management, financing and disposition of our assets, in accordance with our investment objectives, guidelines, policies and limitations, as well as provide us with our executive management team. Our board of directors will at all times have oversight and policy-making authority over us, including responsibility for governance, financial controls, compliance and disclosure.

Our Adviser is a part of Blackstone, an alternative asset management business that includes the management of investment vehicles focused on private equity, real estate, public debt and equity, non-investment grade credit, real assets, and secondary funds, all on a global basis. Through its different businesses, Blackstone had total assets under management of $571.1 billion as of December 31, 2019.

In connection with the performance of its duties, our Adviser benefits from the resources, relationships, and expertise of the 575 professionals in Blackstone’s global real estate group, which is one of the largest real estate investment managers in the world with $163.2 billion of investor capital under management as of December 31, 2019. Blackstone's real estate group ("Blackstone Real Estate") has one centralized investment committee (the "Investment Committee") that meets weekly to review large new investments around the world. The Investment Committee includes all Senior Managing Directors in Blackstone Real Estate, as well as select senior executives of Blackstone.

Our chief executive officer, chief financial officer, and other executive officers are senior Blackstone real estate professionals. Our Adviser, our executive officers, and other personnel supplied to us by our Adviser are each not obligated to dedicate any specific amount of time to our business. Our Adviser is subject to the supervision and oversight of our board of directors and has only such functions and authority as our board of directors delegates to it. Pursuant to the Advisory Agreement, our Adviser is entitled to receive a base management fee, and expense reimbursements. In addition, BREIT Special Limited Partner L.P. (the “Special Limited Partner”), a wholly-owned subsidiary of Blackstone, is entitled to receive a performance participation allocation. See Note 11 to our consolidated financial statements and Item 13 “Certain Relationships and Related Transactions, and Director Independence” in this Annual Report on Form 10-K for more detail on the terms of the Advisory Agreement.

Our investment strategy is to acquire primarily stabilized, income-generating commercial real estate in the United States. To a lesser extent, we also invest in real estate debt to provide current income and, together with our lines of credit, a source of liquidity for our share repurchase plan, cash management and other purposes.

Our investment strategy capitalizes on Blackstone’s scale and the real-time information provided by its real estate holdings to identify and acquire our target investments at attractive pricing. We also benefit from Blackstone’s reputation and ability to transact in scale with speed and certainty, and its long-standing and extensive relationships in the real estate industry. After acquisition, we leverage Blackstone Real Estate’s established asset management team, which focuses on value creation through the oversight and improvement of the operating performance of Blackstone Real Estate’s portfolio holdings.

Our investments in primarily stabilized, income-generating U.S. commercial real estate focus on a range of asset types. These may include multifamily, industrial, net lease, hotel, retail, and office assets, as well as others, including, without limitation, healthcare, student housing, senior living, data centers, manufactured housing and storage properties. For a breakdown of our portfolio by asset type see the “Investments in Properties” section below.

Our real estate debt strategy is designed to generate current income. We also believe that our real estate debt will, in conjunction with our lines of credit, help maintain sufficient liquidity to satisfy monthly repurchase requests under our share repurchase plan and manage cash before investing subscription proceeds into real estate. We utilize the Blackstone Real Estate Debt Strategies (“BREDS”) team to assist with this portion of the portfolio. The BREDS team leverages the competitive advantages of the broader Blackstone Real Estate platform and its own proprietary investment models to seek attractive real estate debt investment opportunities throughout the capital structure.

We believe that our structure as a perpetual-life REIT will allow us to acquire and manage our investment portfolio in a more flexible manner. We do not have a pre-determined operational period or the need to provide a “liquidity” event at the end of that period.

We invest primarily in stabilized, income-generating U.S. commercial real estate. We may invest to a lesser extent in Canadian and European cities and potentially elsewhere and opportunistically in equity of public and private real estate-related companies. As of December 31, 2019, our entire property portfolio is located in the United States. We may also acquire assets that require some amount of capital investment in order to be renovated or repositioned. We generally will limit investment in new developments on a standalone basis, but may consider development that is ancillary to an overall investment. As of December 31, 2019, our property portfolio did not contain any active development projects.

We do not designate specific geography or sector allocations for the portfolio; rather we invest in regions or asset classes where we see the best opportunities that support our investment objectives.

The following charts describe our portfolio composition in real properties based on fair value as of December 31, 2019:

The following map identifies the 15 top markets of our portfolio composition in real properties based on fair value as of December 31, 2019:

Our real estate debt investments focus on non-distressed public and private real estate debt, including, but not limited to, commercial mortgage-backed securities (“CMBS”), real estate-related corporate credit, mortgages, loans, mezzanine and other forms of debt (including residential mortgage-backed securities (“RMBS”) and other residential credit), interests of collateralized debt obligation and collateralized loan obligation vehicles and equity interests in public and private entities that invest in real estate debt as one of their core businesses, and may also include preferred equity and derivatives. Our investments in real estate debt are focused in the United States, but may also include securities issued or backed by real estate in Europe and certain other countries.

We use financial leverage to provide additional funds to support our investment activities. This allows us to make more investments than would otherwise be possible, resulting in a broader portfolio. Subject to the limitation on indebtedness for money borrowed in our charter described below, our target leverage ratio is in the range of 60%. Our leverage ratio is measured by dividing (i) consolidated property-level and entity-level debt net of cash and loan-related restricted cash, by (ii) the asset value of real estate investments (measured using the greater of fair market value and the cost) plus the equity in our settled real estate debt portfolio. Indebtedness incurred (i) in connection with funding a deposit in advance of the closing of an investment or (ii) as other working capital advances, will not be included as part of the calculation above. The leverage ratio excludes our pro rata share of indebtedness within our unconsolidated investments. Real estate investments include our direct property investments, unconsolidated investments, and equity in public and private real estate-related companies. Our real estate debt portfolio may have embedded leverage, including through the

use of reverse repurchase agreements and derivatives, including, but not limited to, total return swaps, securities lending arrangements and credit default swaps. During times of increased investment and capital market activity, but subject to the limitation on indebtedness for money borrowed in our charter described below, we may employ greater leverage in order to build a broader portfolio of assets. We may leverage our portfolio by assuming or incurring secured or unsecured property-level or entity-level debt.

Under our charter, we have a limitation that precludes us from borrowing in excess of 300% of the cost of our net assets, which approximates borrowing 75% of the cost of our investments (unless a majority of our independent directors approves any borrowing in excess of the limit and we disclose the justification for doing so to our stockholders), but such restriction does not restrict the amount of indebtedness we may incur with respect to any single investment.

For an overview of our borrowings, see Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources.”

We elected to be taxed as a REIT, under the Code commencing with our taxable year ended December 31, 2017, the year in which the proceeds from the Initial Offering were released from escrow. We generally must distribute annually at least 90% of our taxable net income, subject to certain adjustments and excluding any net capital gain, in order for U.S. federal income tax not to apply to our earnings that we distribute. To the extent that we satisfy this distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal tax laws.

Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S. federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full taxable years.

Furthermore, we have one or more taxable REIT subsidiaries (“TRSs”) which pay federal, state, and local income tax on their net taxable income. See Item 1A—“Risk Factors—Risks Related to our REIT Status and Certain Other Tax Items” for additional tax status information.

On December 22, 2017, the federal tax legislation commonly known as the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law. Since enactment, the IRS has issued several proposed regulations (the “Proposed Regs”), which interpret and clarify many salient changes contained in the Tax Act. The Tax Act and Proposed Regs have made fundamental changes to the taxation of REITs and their security holders. The most significant of these provisions are described below. The individual and collective impact of these changes on REITs such as the Company and their security holders is uncertain, and may not become evident for some period. Prospective investors should consult their tax advisors regarding the implications of the Tax Act on the Company and their investment.

Under the Tax Act, United States holders that are individuals, trusts or estates generally may deduct 20% of “qualified REIT dividends” (i.e., REIT dividends other than capital gain dividends and portions of REIT dividends designated as qualified dividend income eligible for capital gain tax rates). The overall deduction is limited to 20% of the sum of the taxpayer’s taxable income (less net capital gain) and certain cooperative dividends, subject to further limitations based on taxable income. The deduction, if allowed in full, equates to a reduction in the maximum effective United States federal income tax rate on ordinary REIT dividends from 37.0% to 29.6%. As with the other individual income tax changes, the deduction provisions are effective beginning in 2018. Without further legislation, the deduction will sunset and no longer apply after 2025.

Maximum Corporate Tax Rate Lowered to 21%; Elimination of Corporate Alternative Minimum Tax

The Tax Act reduces the 35% maximum federal corporate income tax rate to a maximum 21% corporate rate. The Tax Act also permanently eliminates the corporate alternative minimum tax. These provisions are effective beginning in 2018. As disclosed above,

we have one or more TRSs which would be subject to a maximum tax rate of 21% under the Tax Act, before giving effect to any applicable state and local taxes.

Net operating loss (“NOL”) provisions are modified by the Tax Act. The Tax Act limits the NOL deduction to 80% of taxable income (before the deduction). It also generally eliminates NOL carrybacks for individuals and non-REIT corporations (NOL carrybacks did not apply to REITs under prior law), but allows indefinite NOL carryforwards. The new NOL rules apply to losses arising in taxable years beginning in 2018. As disclosed above, we have one or more TRSs which would be subject to the NOL provisions under the Tax Act.

As an owner of real estate, we are subject to various environmental laws of federal, state and local governments. Compliance with federal, state and local environmental laws has not had a material, adverse effect on our business, assets, results of operations, financial condition and ability to pay distributions, and we do not believe that our existing portfolio will require us to incur material expenditures to comply with these laws and regulations.

We face competition from various entities for investment opportunities in properties, including other REITs, pension funds, insurance companies, investment funds and companies, partnerships and developers. In addition to third-party competitors, other programs sponsored by the Adviser and its affiliates, particularly those with investment strategies that overlap with ours, will seek investment opportunities under Blackstone’s prevailing policies and procedures. Many of these entities may have greater access to capital to make investments than we have.

In the face of this competition, we have access to our Adviser’s and Blackstone’s professionals and their industry expertise and relationships, which we believe provide us with a competitive advantage and help us source, evaluate and compete for potential investments. We believe these relationships will enable us to compete more effectively for attractive investment opportunities. However, we may not be able to achieve our business goals or expectations due to the competitive risks that we face. For additional information concerning these competitive risks, see Item 1A—“Risk Factors—Risks Related to Our Investment Activities.”

We are subject to conflicts of interest arising out of our relationship with Blackstone, including the Adviser and its affiliates. See Item 1A — “Risk Factors — Risks Related to Conflicts of Interest.”

Stockholders may obtain copies of our filings with the SEC, free of charge from the website maintained by the SEC at www.sec.gov or from our website at www.breit.com.

We are providing the address to our website solely for the information of investors. The information on our website is not a part of, nor is it incorporated by reference into, this report.

You should specifically consider the following material risks in addition to the other information contained in this Annual Report on Form 10-K. The occurrence of any of the following risks might have a material adverse effect on our business and financial condition. The risks and uncertainties discussed below are not the only ones we face, but do represent those risks and uncertainties that we believe are most significant to our business, operating results, financial condition, prospects and forward-looking statements. As used herein, the term “you” refers to our current stockholders or potential investors in our common stock, as applicable.

We have held most of our current investments for only a limited period of time and you will not have the opportunity to evaluate our future investments before we make them, which makes your investment more speculative.

We have held most of our current investments for a limited period of time and are not able to provide you with information to assist you in evaluating the merits of any specific properties or real estate debt that we may acquire, except for investments that may be described in one or more supplements to the prospectus for the Offering (the “Prospectus”). Because we have not held our current investments for a long period of time, it may be difficult for you to evaluate our success in achieving our investment objectives. We will continue to seek to invest substantially all of the future net offering proceeds from the Offering and certain private offerings, after the payment of fees and expenses, in the acquisition of or investment in interests in properties and real estate debt. However, because you will be unable to evaluate the economic merit of our future investments before we make them, you will have to rely entirely on the ability of the Adviser to select suitable and successful investment opportunities. Furthermore, the Adviser has broad discretion in selecting the types of properties we will invest in and the tenants of those properties, and you will not have the opportunity to evaluate potential investments. These factors increase the risk that your investment may not generate returns comparable to other real estate investment alternatives.

The Adviser manages our portfolio pursuant to very broad investment guidelines and generally is not required to seek the approval of our board of directors for each investment, financing or asset allocation decision made by it, which may result in our making riskier investments and which could adversely affect our results of operations and financial condition.

Our board of directors approved very broad investment guidelines that delegate to the Adviser the authority to execute acquisitions and dispositions of real estate and real estate debt on our behalf, in each case so long as such investments are consistent with the investment guidelines and our charter. The Adviser will implement on our behalf the strategies and discretionary approaches it believes from time to time may be best suited to prevailing market conditions in furtherance of that purpose, subject to the limitations under our investment guidelines and our charter. There can be no assurance that the Adviser will be successful in implementing any particular strategy or discretionary approach to our investment activities. Furthermore, the diversification and type of investments may differ substantially from our prior investments. For example, future investments may focus on different sectors of real estate or different geographic areas than is the case for our current investment portfolio. Our board of directors reviews our investment guidelines on an annual basis (or more often as it deems appropriate) and reviews our investment portfolio periodically. The prior approval of our board of directors or a committee of independent directors will be required only as set forth in our charter (including for transactions with affiliates of the Adviser) or for the acquisition or disposition of assets that are not in accordance with our investment guidelines. In addition, in conducting periodic reviews, our directors rely primarily on information provided to them by the Adviser. Furthermore, transactions entered into on our behalf by the Adviser may be costly, difficult or impossible to unwind when they are subsequently reviewed by our board of directors.

There is no public trading market for shares of our common stock; therefore, your ability to dispose of your shares will likely be limited to repurchase by us. If you do sell your shares to us, you may receive less than the price you paid.

There is no current public trading market for shares of our common stock, and we do not expect that such a market will ever develop. Therefore, repurchase of shares by us will likely be the only way for you to dispose of your shares. We expect to continue to repurchase shares at a price equal to the transaction price of the class of shares being repurchased on the date of repurchase (which will generally be equal to our prior month’s NAV per share) and not based on the price at which you initially purchased your shares. Subject to limited exceptions, shares repurchased within one year of the date of issuance will be repurchased at 95% of the transaction price. As a result, you may receive less than the price you paid for your shares when you sell them to us pursuant to our share repurchase plan. See Item 5—“Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Share Repurchases.”

Your ability to have your shares repurchased through our share repurchase plan is limited. We may choose to repurchase fewer shares than have been requested to be repurchased, in our discretion at any time, and the amount of shares we may repurchase is

subject to caps. Further, our board of directors may modify, suspend or terminate our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders.

We may choose to repurchase fewer shares than have been requested in any particular month to be repurchased under our share repurchase plan, or none at all, in our discretion at any time. We may repurchase fewer shares than have been requested to be repurchased due to lack of readily available funds because of adverse market conditions beyond our control, the need to maintain liquidity for our operations or because we have determined that investing in real property or other illiquid investments is a better use of our capital than repurchasing our shares. In addition, the total amount of shares that we will repurchase is limited, in any calendar month, to shares whose aggregate value (based on the repurchase price per share on the date of the repurchase) is no more than 2% of our aggregate NAV as of the last day of the previous calendar month and, in any calendar quarter, to shares whose aggregate value is no more than 5% of our aggregate NAV as of the last day of the previous calendar quarter. Further, our board of directors may modify, suspend or terminate our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders. If the full amount of all shares of our common stock requested to be repurchased in any given month are not repurchased, funds will be allocated pro rata based on the total number of shares of common stock being repurchased without regard to class and subject to the volume limitation. All unsatisfied repurchase requests must be resubmitted after the start of the next month or quarter, or upon the recommencement of the share repurchase plan, as applicable.

The vast majority of our assets consist of properties that cannot generally be readily liquidated without impacting our ability to realize full value upon their disposition. Therefore, we may not always have a sufficient amount of cash to immediately satisfy repurchase requests. Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on the Company as a whole, or should we otherwise determine that investing our liquid assets in real properties or other illiquid investments rather than repurchasing our shares is in the best interests of the Company as a whole, then we may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. Because we are not required to authorize the recommencement of the share repurchase plan within any specified period of time, we may effectively terminate the plan by suspending it indefinitely. As a result, your ability to have your shares repurchased by us may be limited and at times you may not be able to liquidate your investment. See Item 5—“Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities—Share Repurchases.”

Economic events that may cause our stockholders to request that we repurchase their shares may materially adversely affect our cash flow and our results of operations and financial condition.

Economic events affecting the U.S. economy, such as the general negative performance of the real estate sector, could cause our stockholders to seek to sell their shares to us pursuant to our share repurchase plan at a time when such events are adversely affecting the performance of our assets. Even if we decide to satisfy all resulting repurchase requests, our cash flow could be materially adversely affected. In addition, if we determine to sell assets to satisfy repurchase requests, we may not be able to realize the return on such assets that we may have been able to achieve had we sold at a more favorable time, and our results of operations and financial condition, including, without limitation, breadth of our portfolio by property type and location, could be materially adversely affected.

In light of the nature of our continuous public offering as well as ongoing and periodic private offerings in relation to our investment strategy and the need to be able to deploy potentially large amounts of capital quickly to capitalize on potential investment opportunities, if we have difficulty identifying and purchasing suitable properties on attractive terms, there could be a delay between the time we receive net proceeds from the sale of shares of our common stock in the Offering or any private offering and the time we invest the net proceeds. We may also from time to time hold cash pending deployment into investments or have less than our targeted leverage, which cash or shortfall in target leverage may at times be significant, particularly at times when we are receiving high amounts of offering proceeds and/or times when there are few attractive investment opportunities. Such cash may be held in an account for the benefit of our stockholders that may be invested in money market accounts or other similar temporary investments, each of which are subject to the management fees.

In the event we are unable to find suitable investments such cash may be maintained for longer periods which would be dilutive to overall investment returns. This could cause a substantial delay in the time it takes for your investment to realize its full potential return and could adversely affect our ability to pay regular distributions of cash flow from operations to you. It is not anticipated that the temporary investment of such cash into money market accounts or other similar temporary investments pending deployment into investments will generate significant interest, and investors should understand that such low interest payments on the temporarily invested cash may adversely affect overall returns. In the event we fail to timely invest the net proceeds of sales of our common stock or do not deploy sufficient capital to meet our targeted leverage, our results of operations and financial condition may be adversely affected.

If we are unable to successfully integrate new investments and manage our growth, our results of operations and financial condition may suffer.

We have in the past and may in the future significantly increase the size and/or change the types of investments in our portfolio. We may be unable to successfully and efficiently integrate newly acquired investments into our existing portfolio or otherwise effectively manage our assets or growth. In addition, increases in the size of our investment portfolio and/or changes in our investment focus may place significant demands on our Adviser’s administrative, operational, asset management, financial and other resources which could lead to decreased efficiency. Any failure to effectively manage such growth or increase in scale could adversely affect our results of operations and financial condition.

The amount and source of distributions we may make to our stockholders is uncertain, and we may be unable to generate sufficient cash flows from our operations to make distributions to our stockholders at any time in the future.

We have not established a minimum distribution payment level, and our ability to make distributions to our stockholders may be adversely affected by a number of factors, including the risk factors described in the Prospectus. We have a limited track record and may not generate sufficient income to make distributions to our stockholders. Our board of directors (or a committee of our board of directors) will make determinations regarding distributions based upon, among other factors, our financial performance, debt service obligations, debt covenants, REIT qualification and tax requirements and capital expenditure requirements. Among the factors that could impair our ability to make distributions to our stockholders are:

As a result, we may not be able to make distributions to our stockholders at any time in the future, and the level of any distributions we do make to our stockholders may not increase or even be maintained over time, any of which could materially and adversely affect the value of your investment.

We may pay distributions from sources other than our cash flow from operations, including, without limitation, the sale of assets, borrowings or offering proceeds, and we have no limits on the amounts we may pay from such sources.

We may not generate sufficient cash flow from operations to fully fund distributions to stockholders, particularly during the early stages of our operations. Therefore, we may fund distributions to our stockholders from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales from our common stock or Operating Partnership units). The extent to which we pay distributions from sources other than cash flow from operations will depend on various factors, including the level of participation in our distribution reinvestment plan, the extent to which the Adviser elects to receive its management fee in Class I shares or Class I units and the Special Limited Partner elects to receive distributions on its performance participation interest in Class I units, how quickly we invest the proceeds from this and any future offering and the performance of our investments, including our real estate debt portfolio. Funding distributions from the sales of assets, borrowings, return of capital or proceeds of the Offering will result in us having less funds available to acquire properties or other real estate-related investments. As a result, the return you realize on your investment may be reduced. Doing so may also negatively impact our ability to generate cash flows. Likewise, funding distributions from the sale of additional securities will dilute your interest in us on a percentage basis and may impact the value of your investment especially if we sell these securities at prices less than the price you paid for your shares. We may be required to continue to fund our regular distributions from a combination of some of these sources if our investments fail to perform, if expenses are greater than our revenues or due to numerous other factors. We have not established a limit on the amount of our distributions that may be paid from any of these sources.

To the extent we borrow funds to pay distributions, we would incur borrowing costs and these borrowings would require a future repayment. The use of these sources for distributions and the ultimate repayment of any liabilities incurred could adversely impact our ability to pay distributions in future periods, decrease our NAV, decrease the amount of cash we have available for operations and new investments and adversely impact the value of your investment.

We may also defer operating expenses or pay expenses (including the fees of the Adviser or distributions to the Special Limited Partner) with shares of our common stock or Operating Partnership units in order to preserve cash flow for the payment of

distributions. The ultimate repayment of these deferred expenses could adversely affect our operations and reduce the future return on your investment. We may repurchase shares or redeem Operating Partnership units from the Adviser or the Special Limited Partner shortly after issuing such units or shares as compensation. The payment of expenses in shares of our common stock or with Operating Partnership units will dilute your ownership interest in our portfolio of assets. There is no guarantee any of our operating expenses will be deferred and the Adviser and Special Limited Partner are under no obligation to receive future fees or distributions in shares of our common stock or Operating Partnership units and may elect to receive such amounts in cash.

Payments to the Adviser or the Special Limited Partner in the form of common stock or Operating Partnership units they elect to receive in lieu of fees or distributions will dilute future cash available for distribution to our stockholders.

The Adviser or the Special Limited Partner may choose to receive, and have in the past received, our common stock or Operating Partnership units in lieu of certain fees or distributions. The holders of all Operating Partnership units are entitled to receive cash from operations pro rata with the distributions being paid to us and such distributions to the holder of the Operating Partnership units will reduce the cash available for distribution to us and to our stockholders. Furthermore, under certain circumstances the Operating Partnership units held by the Adviser or the Special Limited Partner are required to be repurchased, in cash at the holder’s election, and there may not be sufficient cash to make such a repurchase payment; therefore, we may need to use cash from operations, borrowings, offering proceeds or other sources to make the payment, which will reduce cash available for distribution to you or for investment in our operations. Repurchases of our shares or Operating Partnership units from the Adviser paid to the Adviser as a management fee are not subject to the monthly and quarterly volume limitations or the Early Purchase Deduction, and such sales receive priority over other shares being put for repurchase during such period. Repurchases of our shares or Operating Partnership units from the Special Limited Partner distributed to the Special Limited Partner with respect to its performance participation interest are not subject to the Early Purchase Deduction, but, in the case of shares, such repurchases are subject to the monthly and quarterly volume limitations and do not receive priority over other shares being put for repurchase during such period.

Purchases and repurchases of shares of our common stock are not made based on the current NAV per share of our common stock.

Generally, our offering price per share and the price at which we make repurchases of our shares will equal the NAV per share of the applicable class as of the last calendar day of the prior month, plus, in the case of our offering price, applicable upfront selling commissions and dealer manager fees. The NAV per share, if calculated, as of the date on which you make your subscription request or repurchase request may be significantly different than the transaction price you pay or the repurchase price you receive. Certain of our investments or liabilities are subject to high levels of volatility from time to time and could change in value significantly between the end of the prior month as of which our NAV is determined and the date that you acquire or repurchase our shares, however the prior month’s NAV per share will generally continue to be used as the transaction price per share and repurchase price per shares. In exceptional circumstances, we may in our sole discretion, but are not obligated to, offer and repurchase shares at a different price that we believe reflects the NAV per share of such stock more appropriately than the prior month’s NAV per share, including by updating a previously disclosed transaction price, in cases where we believe there has been a material change (positive or negative) to our NAV per share since the end of the prior month and we believe an updated price is appropriate. In such exceptional cases, the transaction price and the repurchase price will not equal our NAV per share as of any time.

Valuations and appraisals of our properties and real estate debt are estimates of fair value and may not necessarily correspond to realizable value.

For the purposes of calculating our monthly NAV, our properties will generally initially be valued at cost, which we expect to represent fair value at that time. Thereafter, valuations of properties will be determined by the Adviser based in part on appraisals of each of our properties by independent third-party appraisal firms reviewed by our independent valuation advisor at least once per year in accordance with valuation guidelines approved by our board of directors. The Adviser will also conduct a monthly valuation of our properties that will be reviewed and confirmed for reasonableness by our independent valuation advisor. Investments in real estate debt with readily available market quotations will be valued monthly at fair market value. Certain real estate debt investments, such as mortgages and mezzanine loans, are unlikely to have market quotations. In the case of loans acquired by us, such initial value will generally be the acquisition price of such loan. In the case of loans originated by us, such initial value will generally be the par value of such loan. Each such investment will then be valued by the Adviser within the first three full months after we invest in such investment and no less than quarterly thereafter. Additionally, the Adviser may in its discretion consider material market data and other information that becomes available after the end of the applicable month in valuing our assets and liabilities and calculation our NAV for a particular month. For more information regarding our valuation process, see “Net Asset Value Calculation and Valuation Guidelines” in the Prospectus.

Although monthly valuations of each of our real properties will be reviewed and confirmed for reasonableness by our independent valuation advisor, such valuations are based on asset- and portfolio-level information provided by the Adviser, including historical

operating revenues and expenses of the properties, lease agreements on the properties, revenues and expenses of the properties, information regarding recent or planned capital expenditures and any other information relevant to valuing the real estate property, which information will not be independently verified by our independent valuation advisor. Similarly, although our monthly valuations of our real estate debt and other securities for which market quotations are not readily available will be reviewed and confirmed for reasonableness by our independent valuation advisor, such valuations are based on information provided by the Adviser, which information will not be verified by our independent valuation advisor.

Within the parameters of our valuation guidelines, the valuation methodologies used to value our properties and certain of our real estate debt will involve subjective judgments and projections and may not be accurate. Valuation methodologies will also involve assumptions and opinions about future events, which may or may not turn out to be correct. Valuations and appraisals of our properties and other investments will be only estimates of fair value. Ultimate realization of the value of an asset depends to a great extent on economic, market and other conditions beyond our control and the control of the Adviser and our independent valuation advisor. Further, valuations do not necessarily represent the price at which an asset would sell, since market prices of assets can only be determined by negotiation between a willing buyer and seller. As such, the carrying value of an asset may not reflect the price at which the asset could be sold in the market, and the difference between carrying value and the ultimate sales price could be material. In addition, accurate valuations are more difficult to obtain in times of low transaction volume because there are fewer market transactions that can be considered in the context of the appraisal. There will be no retroactive adjustment in the valuation of such assets, the offering price of our shares of common stock, the price we paid to repurchase shares of our common stock or NAV-based fees we paid to the Adviser and Blackstone Advisory Partners L.P. (the “Dealer Manager”), an affiliate of the Adviser, to the extent such valuations prove to not accurately reflect the realizable value of our assets. Because the price you will pay for shares of our common stock in the Offering, and the price at which your shares may be repurchased by us pursuant to our share repurchase plan are generally based on our prior month’s NAV per share, you may pay more than realizable value or receive less than realizable value for your investment.

Our NAV per share amounts may change materially if the appraised values of our properties materially change from prior appraisals or the actual operating results for a particular month differ from what we originally budgeted for that month.

We anticipate that the annual appraisals of our properties will be conducted on a rolling basis, such that properties may be appraised at different times but each property would be appraised at least once per year. When these appraisals are considered by the Adviser for purposes of valuing the relevant property, there may be a material change in our NAV per share amounts for each class of our common stock from those previously reported. In addition, actual operating results for a given month may differ from what we originally budgeted for that month, which may cause a material increase or decrease in the NAV per share amounts. We will not retroactively adjust the NAV per share of each class reported for the previous month. Therefore, because a new annual appraisal may differ materially from the prior appraisal or the actual results from operations may be better or worse than what we previously budgeted for a particular month, the adjustment to take into consideration the new appraisal or actual operating results may cause the NAV per share for each class of our common stock to increase or decrease, and such increase or decrease will occur in the month the adjustment is made.

It may be difficult to reflect, fully and accurately, material events that may impact our monthly NAV.

The Adviser’s determination of our monthly NAV per share will be based in part on appraisals of each of our properties provided annually by independent third-party appraisal firms in individual appraisal reports reviewed by our independent valuation advisor and quarterly valuations of our real estate debt and other securities for which market quotations are not readily available provided by the Adviser and reviewed by our independent valuation advisor, each in accordance with valuation guidelines approved by our board of directors. As a result, our published NAV per share in any given month may not fully reflect any or all changes in value that may have occurred since the most recent appraisal or valuation. The Adviser will review appraisal reports and monitor our properties and real estate debt, and is responsible for notifying the independent valuation advisor of the occurrence of any property-specific or market-driven event it believes may cause a material valuation change in the real estate valuation, but it may be difficult to reflect fully and accurately rapidly changing market conditions or material events that may impact the value of our properties and real estate debt or liabilities between valuations, or to obtain complete information regarding any such events in a timely manner. For example, an unexpected termination or renewal of a material lease, a material increase or decrease in vacancies or an unanticipated structural or environmental event at a property may cause the value of a property to change materially, yet obtaining sufficient relevant information after the occurrence has come to light and/or analyzing fully the financial impact of such an event may be difficult to do and may require some time. As a result, the NAV per share may not reflect a material event until such time as sufficient information is available and analyzed, and the financial impact is fully evaluated, such that our NAV may be appropriately adjusted in accordance with our valuation guidelines. Depending on the circumstance, the resulting potential disparity in our NAV may be in favor or to the detriment of either stockholders who repurchase their shares, or stockholders who buy new shares, or existing stockholders.

NAV calculations are not governed by governmental or independent securities, financial or accounting rules or standards.

The methods used by our Adviser and State Street to calculate our NAV, including the components used in calculating our NAV, is not prescribed by rules of the SEC or any other regulatory agency. Further, there are no accounting rules or standards that prescribe which components should be used in calculating NAV, and our NAV is not audited by our independent registered public accounting firm. We calculate and publish NAV solely for purposes of establishing the price at which we sell and repurchase shares of our common stock, and you should not view our NAV as a measure of our historical or future financial condition or performance. The components and methodology used in calculating our NAV may differ from those used by other companies now or in the future.

In addition, calculations of our NAV, to the extent that they incorporate valuations of our assets and liabilities, are not prepared in accordance with generally accepted accounting principles. These valuations may differ from liquidation values that could be realized in the event that we were forced to sell assets.

Additionally, errors may occur in calculating our NAV, which could impact the price at which we sell and repurchase shares of our common stock and the amount of the Adviser’s management fee and the Special Limited Partner’s performance participation interest. The Adviser has implemented certain policies and procedures to address such errors in NAV calculations. If such errors were to occur, the Adviser, depending on the circumstances surrounding each error and the extent of any impact the error has on the price at which shares of our common stock were sold or repurchased or on the amount of the Adviser’s management fee or the Special Limited Partner’s performance participation interest, may determine in its sole discretion to take certain corrective actions in response to such errors, including, subject to Blackstone’s policies and procedures, making adjustments to prior NAV calculations. You should carefully review the disclosure of our valuation policies and how NAV will be calculated under “Net Asset Value Calculation and Valuation Guidelines” in the Prospectus.

Our board of directors may, in the future, adopt certain measures under Maryland law without stockholder approval that may have the effect of making it less likely that a stockholder would receive a “control premium” for his or her shares.

Corporations organized under Maryland law with a class of registered securities and at least three independent directors are permitted to elect to be subject, by a charter or bylaw provision or a board of directors resolution and notwithstanding any contrary charter or bylaw provision, to any or all of five provisions:

These provisions may discourage an extraordinary transaction, such as a merger, tender offer or sale of all or substantially all of our assets, all of which might provide a premium price for stockholders’ shares. In our charter, we have elected that vacancies on our board of directors be filled only by the remaining directors and for the remainder of the full term of the directorship in which the vacancy occurred. Through other provisions in our charter and bylaws, we vest in our board of directors the exclusive power to fix the number of directorships, provided that the number is not less than three. We have not elected to be subject to any of the other provisions described above, but our charter does not prohibit our board of directors from opting into any of these provisions in the future.

Further, under the Maryland Business Combination Act, we may not engage in any merger or other business combination with an “interested stockholder” (which is defined as (1) any person who beneficially owns, directly or indirectly, 10% or more of the voting power of our outstanding voting stock and (2) an affiliate or associate of ours who, at any time within the two-year period prior to the date in question, was the beneficial owner, directly or indirectly, of 10% or more of the voting power of our then outstanding stock) or any affiliate of that interested stockholder for a period of five years after the most recent date on which the interested stockholder became an interested stockholder. A person is not an interested stockholder if our board of directors approved in advance the transaction by which he would otherwise have become an interested stockholder. In approving a transaction, our board of directors may provide that its approval is subject to compliance, at or after the time of approval, with any terms or conditions determined by our board of directors. After the five-year period ends, any merger or other business combination with the interested stockholder or any affiliate of the interested stockholder must be recommended by our board of directors and approved by the affirmative vote of at least:

These supermajority voting provisions do not apply if, among other things, our stockholders receive a minimum payment for their common stock equal to the highest price paid by the interested stockholder for its shares.

The statute permits various exemptions from its provisions, including business combinations that are exempted by our board of directors prior to the time the interested stockholder becomes an interested stockholder. Our board of directors has adopted a resolution exempting any business combination involving us and any person, including Blackstone, the Dealer Manager and the Adviser, from the provisions of this law, provided that such business combination is first approved by our board of directors.

Our charter permits our board of directors to authorize us to issue preferred stock on terms that may subordinate the rights of the holders of our current common stock or discourage a third party from acquiring us.

Our board of directors is permitted, subject to certain restrictions set forth in our charter, to authorize the issuance of shares of preferred stock without stockholder approval. Further, our board of directors may classify or reclassify any unissued shares of common or preferred stock into other classes or series of stock and establish the preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends and other distributions, qualifications, and terms or conditions of redemption of the stock and may amend our charter from time to time to increase or decrease the aggregate number of shares or the number of shares of any class or series that we have authority to issue without stockholder approval. Thus, our board of directors could authorize us to issue shares of preferred stock with terms and conditions that could subordinate the rights of the holders of our common stock or have the effect of delaying, deferring or preventing a change in control of us, including an extraordinary transaction such as a merger, tender offer or sale of all or substantially all of our assets, that might provide a premium price for holders of our common stock.

Maryland law limits, in some cases, the ability of a third party to vote shares acquired in a “control share acquisition.”

The Maryland Control Share Acquisition Act provides that “control shares” of a Maryland corporation acquired in a “control share acquisition” have no voting rights except to the extent approved by stockholders by a vote of two-thirds of the votes entitled to be cast on the matter. Shares of stock owned by the acquirer, by officers or by employees who are directors of the corporation, are excluded from shares entitled to vote on the matter. “Control shares” are voting shares of stock which, if aggregated with all other shares of stock owned by the acquirer or in respect of which the acquirer can exercise or direct the exercise of voting power (except solely by virtue of a revocable proxy), would entitle the acquirer to exercise voting power in electing directors within specified ranges of voting power. Control shares do not include shares the acquiring person is then entitled to vote as a result of having previously obtained stockholder approval or shares acquired directly from the corporation. A “control share acquisition” means the acquisition of issued and outstanding control shares. The control share acquisition statute does not apply: (1) to shares acquired in a merger, consolidation or statutory share exchange if the Maryland corporation is a party to the transaction; or (2) to acquisitions approved or exempted by the charter or bylaws of the Maryland corporation. Our bylaws contain a provision exempting from the Control Share Acquisition Act any and all acquisitions of our stock by any person. There can be no assurance that this provision will not be amended or eliminated at any time in the future. For a more detailed discussion on the Maryland laws governing control share acquisitions, see “Certain Provisions of Maryland Corporate Law and Our Charter and Bylaws—Control Share Acquisition” in the Prospectus.

Maryland law and our organizational documents limit our rights and the rights of our stockholders to recover claims against our directors and officers, which could reduce your and our recovery against them if they cause us to incur losses.

Maryland law provides that a director will not have any liability as a director so long as he or she performs his or her duties in accordance with the applicable standard of conduct. In addition, our charter generally limits the personal liability of our directors and officers for monetary damages subject to the limitations of the North American Securities Administrators Association’s Statement of Policy Regarding Real Estate Investment Trusts, as revised and adopted on May 7, 2007 (the “NASAA REIT Guidelines”) and Maryland law. Maryland law and our charter provide that no director or officer shall be liable to us or our stockholders for monetary damages unless the director or officer (1) actually received an improper benefit or profit in money, property or services or (2) was actively and deliberately dishonest as established by a final judgment as material to the cause of action. Moreover, our charter generally requires us to indemnify and advance expenses to our directors and officers for losses they may incur by reason of their service in those capacities unless their act or omission was material to the matter giving rise to the proceeding and was committed in bad faith or was the result of active and deliberate dishonesty, they actually received an improper personal benefit in money, property or services or, in the case of any criminal proceeding, they had reasonable cause to believe the act or omission was unlawful. Further,

we have entered into separate indemnification agreements with each of our officers and directors. As a result, you and we may have more limited rights against our directors or officers than might otherwise exist under common law, which could reduce your and our recovery from these persons if they act in a manner that causes us to incur losses. In addition, we are obligated to fund the defense costs incurred by these persons in some cases. However, our charter provides that we may not indemnify our directors or officers, or the Adviser and its affiliates, for any liability or loss suffered by them or hold our directors or officers, the Adviser and its affiliates harmless for any liability or loss suffered by us, unless they have determined, in good faith, that the course of conduct that caused the loss or liability was in our best interests, they were acting on our behalf or performing services for us, the liability or loss was not the result of negligence or misconduct by our non-independent directors, the Adviser and its affiliates, or gross negligence or willful misconduct by our independent directors, and the indemnification or agreement to hold harmless is recoverable only out of our net assets or the proceeds of insurance and not from the stockholders. See “Management—Limited Liability and Indemnification of Directors, Officers, the Adviser and Other Agents” in the Prospectus.

Maryland law and our organizational documents limit our stockholders’ ability to amend our charter or dissolve us without the approval of our board of directors.

Although the NASAA REIT Guidelines indicate that stockholders are permitted to amend our charter or terminate us without the necessity for concurrence by our board of directors, we are required to comply with the Maryland General Corporation Law, which provides that any amendment to our charter or any dissolution of our company must first be declared advisable by our board of directors. Therefore, our stockholders may vote to authorize the amendment of our charter or the dissolution of our company, but only after such action has been declared advisable by our board of directors. Accordingly, the only proposals to amend our charter or to dissolve our company that will be presented to our stockholders will be those that have been declared advisable by our board of directors and also require approval by our stockholders.

Your interest in us will be diluted if we issue additional shares. Your interest in our assets will also be diluted if the Operating Partnership issues additional units.

Holders of our common stock will not have preemptive rights to any shares we issue in the future. Our charter authorizes us to issue up to 3,100,000,000 shares of capital stock, of which 3,000,000,000 shares are classified as common stock, of which 500,000,000 shares are classified as Class T shares, 1,000,000,000 shares are classified as Class S shares, 500,000,000 shares are classified as Class D shares and 1,000,000,000 are classified as Class I shares, and 100,000,000 shares are classified as preferred stock. We have also issued shares in private offerings and Operating Partnership units to holders other than the Company, and expect to make more such issuances in the future. In addition, our board of directors may amend our charter from time to time to increase or decrease the aggregate number of authorized shares of capital stock or the number of authorized shares of capital stock of any class or series without stockholder approval. After you purchase shares of our common stock in the Offering, our board of directors may elect, without stockholder approval, to: (1) sell additional shares in this or future public offerings; (2) issue shares of our common stock or units in our Operating Partnership in private offerings; (3) issue shares of our common stock or units in our Operating Partnership upon the exercise of the options we may grant to our independent directors or future employees; (4) issue shares of our common stock or units in our Operating Partnership to the Adviser or the Special Limited Partner, or their successors or assigns, in payment of an outstanding obligation to pay fees for services rendered to us or the performance participation allocation; (5) issue shares of our common stock or units in our Operating Partnership to sellers of properties we acquire, or (6) issue equity incentive compensation to certain employees of affiliated service providers or to third-parties as satisfaction of obligations under incentive compensation arrangements. To the extent we issue additional shares of common stock after your purchase in the Offering, your percentage ownership interest in us will be diluted. Because we hold all of our assets through the Operating Partnership, to the extent we issue additional units of our Operating Partnership after you purchase in the Offering, your percentage ownership interest in our assets will be diluted. Because certain classes of the units of our Operating Partnership may, in the discretion of our board of directors, be exchanged for shares of our common stock, any merger, exchange or conversion between our Operating Partnership and another entity ultimately could result in the issuance of a substantial number of shares of our common stock, thereby diluting the percentage ownership interest of other stockholders. Because of these and other reasons, our stockholders may experience substantial dilution in their percentage ownership of our shares or their interests in the underlying assets held by our Operating Partnership. Operating Partnership units may have different and preferential rights to the claims of common units of our Operating Partnership which correspond to the common stock held by our stockholders. Certain units in our Operating Partnership may have different and preferential rights to the terms of the common Operating Partnership units which correspond to the common stock held by our stockholders.

We are not required to comply with certain reporting requirements, including those relating to auditor’s attestation reports on the effectiveness of our system of internal control over financial reporting, accounting standards and disclosure about our executive compensation, that apply to other public companies.

So long as our shares of common stock are not traded on a securities exchange, we will be deemed to be a “non-accelerated filer” under the Exchange Act, and as a non-accelerated filer, we will be exempt from compliance with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act. In addition, so long as we are externally managed by the Adviser and we do not directly compensate our executive officers, or reimburse the Adviser or its affiliates for salaries, bonuses, benefits and severance payments for persons who also serve as one of our executive officers or as an executive officer of the Adviser, we do not have any executive compensation.

Our UPREIT structure may result in potential conflicts of interest with limited partners in our Operating Partnership whose interests may not be aligned with those of our stockholders.

Our directors and officers have duties to our corporation and our stockholders under Maryland law and our charter in connection with their management of the corporation. At the same time, we, as general partner, have fiduciary duties under Delaware law to our Operating Partnership and to the limited partners in connection with the management of our Operating Partnership. Our duties as general partner of our Operating Partnership and its partners may come into conflict with the duties of our directors and officers to the corporation and our stockholders. Under Delaware law, a general partner of a Delaware limited partnership owes its limited partners the duties of good faith and fair dealing. Other duties, including fiduciary duties, may be modified or eliminated in the partnership’s partnership agreement. The partnership agreement of our Operating Partnership provides that, for so long as we own a controlling interest in our Operating Partnership, any conflict that cannot be resolved in a manner not adverse to either our stockholders or the limited partners may be resolved in favor of our stockholders.

Additionally, the partnership agreement expressly limits our liability by providing that we and our officers, directors, agents and employees will not be liable or accountable to our Operating Partnership for losses sustained, liabilities incurred or benefits not derived if we or our officers, directors, agents or employees acted in good faith. In addition, our Operating Partnership is required to indemnify us and our officers, directors, employees, agents and designees to the extent permitted by applicable law from and against any and all claims arising from operations of our Operating Partnership, unless it is established that: (1) the act or omission was material to the matter giving rise to the proceeding and either was committed in bad faith or was the result of active and deliberate dishonesty; (2) the indemnified party received an improper personal benefit in money, property or services; or (3) in the case of a criminal proceeding, the indemnified person had reasonable cause to believe that the act or omission was unlawful.

The provisions of Delaware law that allow the fiduciary duties of a general partner to be modified by a partnership agreement have not been tested in a court of law, and we have not obtained an opinion of counsel covering the provisions set forth in the partnership agreement that purport to waive or restrict our fiduciary duties.

Your investment return may be reduced if we are required to register as an investment company under the Investment Company Act.

We intend to continue to conduct our operations so that neither we, nor our Operating Partnership nor the subsidiaries of our Operating Partnership are investment companies under the Investment Company Act of 1940, as amended (the “Investment Company Act”). However, there can be no assurance that we and our subsidiaries will be able to successfully avoid operating as an investment company.

A change in the value of any of our assets could negatively affect our ability to maintain our exemption from regulation under the Investment Company Act. To maintain compliance with the applicable exemption under the Investment Company Act, we may be unable to sell assets we would otherwise want to sell and may need to sell assets we would otherwise wish to retain. In addition, we may have to acquire additional assets that we might not otherwise have acquired or may have to forego opportunities to acquire assets that we would otherwise want to acquire and would be important to our investment strategy.

If we were required to register as an investment company but failed to do so, we would become subject to substantial regulation with respect to our capital structure (including our ability to use borrowings), management, operations, transactions with affiliated persons (as defined in the Investment Company Act), and portfolio composition, including disclosure requirements and restrictions with respect to diversification and industry concentration, and other matters. Compliance with the Investment Company Act would, accordingly, limit our ability to make certain investments and require us to significantly restructure our business plan, which could materially adversely affect our NAV and our ability to pay distributions to our stockholders.

We depend on the Adviser to develop appropriate systems and procedures to control operational risk.

Operational risks arising from mistakes made in the confirmation or settlement of transactions, from transactions not being properly booked, evaluated or accounted for or other similar disruption in our operations may cause us to suffer financial losses, the disruption

of our business, liability to third parties, regulatory intervention or damage to our reputation. We depend on the Adviser and its affiliates to develop the appropriate systems and procedures to control operational risk. We rely heavily on our financial, accounting and other data processing systems. The ability of our systems to accommodate transactions could also constrain our ability to properly manage our portfolio. Generally, the Adviser will not be liable for losses incurred due to the occurrence of any such errors.

We are subject to the risk that our trading orders may not be executed in a timely and efficient manner due to various circumstances, including, without limitation, systems failure or human error. As a result, we could be unable to achieve the market position selected by the Adviser or might incur a loss in liquidating our positions. Since some of the markets in which we may effect transactions are over-the-counter or interdealer markets, the participants in such markets are typically not subject to credit evaluation or regulatory oversight comparable to that which members of exchange-based markets are subject. We are also exposed to the risk that a counterparty will not settle a transaction in accordance with its terms and conditions, thereby causing us to suffer a loss.

Cybersecurity risks could result in the loss of data, interruptions in our business, damage to our reputation, and subject us to regulatory actions, increased costs and financial losses, each of which could have a material adverse effect on our business and results of operations.

Our operations are highly dependent on our information systems and technology and we rely heavily on our and Blackstone’s financial, accounting, treasury, communications and other data processing systems. Such systems may fail to operate properly or become disabled as a result of tampering or a breach of the network security systems or otherwise. In addition, such systems are from time to time subject to cyberattacks which may continue to increase in sophistication and frequency in the future. Attacks on Blackstone and its affiliates and their portfolio companies’ and service providers’ systems could involve, and in some instances have in the past involved, attempts that are intended to obtain unauthorized access to our proprietary information or personal identifying information of our stockholders, destroy data or disable, degrade or sabotage our systems, or divert or otherwise steal funds, including through the introduction of computer viruses and other malicious code.

Cyber security incidents and cyber-attacks have been occurring globally at a more frequent and severe level and will likely continue to increase in frequency in the future. Our information and technology systems as well as those of Blackstone, its portfolio entities and other related parties, such as service providers, may be vulnerable to damage or interruption from cyber security breaches, computer viruses or other malicious code, “phishing” attempts and other forms of social engineering, network failures, computer and telecommunication failures, infiltration by unauthorized persons and other security breaches, usage errors by their respective professionals or service providers, power, communications or other service outages and catastrophic events such as fires, tornadoes, floods, hurricanes and earthquakes. Cyberattacks and other security threats could originate from a wide variety of external sources, including cyber criminals, nation state hackers, hacktivists and other outside parties. Cyberattacks and other security threats could also originate from the malicious or accidental acts of insiders, such as employees, or third-party agents and consultants of the Company. There has been an increase in the frequency and sophistication of the cyber and security threats Blackstone faces, with attacks ranging from those common to businesses generally to those that are more advanced and persistent, which may target Blackstone because Blackstone holds a significant amount of confidential and sensitive information about its investors, its portfolio companies and potential investments. As a result, Blackstone may face a heightened risk of a security breach or disruption with respect to this information. There can be no assurance that measures Blackstone takes to ensure the integrity of its systems will provide protection, especially because cyberattack techniques used change frequently or are not recognized until successful.

If unauthorized parties gain access to such information and technology systems, they may be able to steal, publish, delete or modify private and sensitive information, including nonpublic personal information related to shareholders (and their beneficial owners) and material nonpublic information. Although Blackstone has implemented, and its portfolio entities and service providers may implement, various measures to manage risks relating to these types of events, such systems could prove to be inadequate and, if compromised, could become inoperable for extended periods of time, cease to function properly or fail to adequately secure private information. Blackstone does not control the cyber security plans and systems put in place by third party service providers, and such third party service providers may have limited indemnification obligations to Blackstone, its portfolio entities and us, each of which could be negatively impacted as a result. Breaches such as those involving covertly introduced malware, impersonation of authorized users and industrial or other espionage may not be identified even with sophisticated prevention and detection systems, potentially resulting in further harm and preventing them from being addressed appropriately. The failure of these systems or of disaster recovery plans for any reason could cause significant interruptions in Blackstone’s, its affiliates’, their portfolio entities’ or our operations and result in a failure to maintain the security, confidentiality or privacy of sensitive data, including personal information relating to shareholders, material nonpublic information and the intellectual property and trade secrets and other sensitive information in the possession of Blackstone and portfolio entities. We, Blackstone or a portfolio entity could be required to make a significant investment to remedy the effects of any such failures, harm to their reputations, legal claims that they and their respective affiliates may be subjected to, regulatory action or enforcement arising out of applicable privacy and other laws, adverse publicity and other events that may affect their business and financial performance.

The costs related to cyber or other security threats or disruptions may not be fully insured or indemnified by other means. In addition, we could also suffer losses in connection with updates to, or the failure to timely update, our information systems and technology. In addition, we have become increasingly reliant on third-party service providers for certain aspects of our business, including for our administration, as well as for certain information systems and technology, including cloud-based services. These third-party service providers could also face ongoing cyber security threats and compromises of their systems and as a result, unauthorized individuals could gain access to certain confidential data.

Cybersecurity has become a top priority for regulators around the world. Many jurisdictions in which Blackstone operates have laws and regulations relating to data privacy, cybersecurity and protection of personal information, including, as examples the General Data Protection Regulation in the European Union that went into effect in May 2018 and the California Consumer Privacy Act that went into effect in January 2020. Some jurisdictions have also enacted laws requiring companies to notify individuals and government agencies of data security breaches involving certain types of personal data. Breaches in security, whether malicious in nature or through inadvertent transmittal or other loss of data, could potentially jeopardize Blackstone, its employees’ or our investors’ or counterparties’ confidential, proprietary and other information processed and stored in, and transmitted through Blackstone’s computer systems and networks, or otherwise cause interruptions or malfunctions in its, its employees’, our investors’, our counterparties’ or third parties’ business and operations, which could result in significant financial losses, increased costs, liability to our investors and other counterparties, regulatory intervention and reputational damage. Furthermore, if Blackstone fails to comply with the relevant laws and regulations or fail to provide the appropriate regulatory or other notifications of breach in a timely manner, it could result in regulatory investigations and penalties, which could lead to negative publicity and reputational harm and may cause our investors or Blackstone fund investors and clients to lose confidence in the effectiveness of our or Blackstone’s security measures.

Furthermore, Blackstone’s portfolio companies also rely on data processing systems and the secure processing, storage and transmission of information, including payment and health information. A disruption or compromise of these systems could have a material adverse effect on the value of these businesses.

Finally, Blackstone’s technology, data and intellectual property and the technology, data and intellectual property of its portfolio companies are also subject to a heightened risk of theft or compromise to the extent Blackstone and its portfolio companies engage in operations outside the United States, in particular in those jurisdictions that do not have comparable levels of protection of proprietary information and assets such as intellectual property, trademarks, trade secrets, know-how and customer information and records. In addition, Blackstone and its portfolio companies may be required to compromise protections or forego rights to technology, data and intellectual property in order to operate in or access markets in a foreign jurisdiction. Any such direct or indirect compromise of these assets could have a material adverse impact on such businesses.

Our operating results will be affected by economic and regulatory changes that impact the real estate market in general.

We are subject to risks generally attributable to the ownership of real property, including:

All of these factors are beyond our control. Any negative changes in these factors could affect our performance and our ability to meet our obligations and make distributions to stockholders.

The real estate industry generally and the success of our investment activities in particular will both be affected by global and national economic and market conditions generally and by the local economic conditions where our properties are located. These factors may affect the level and volatility of real estate prices, which could impair our profitability or result in losses. In addition, general fluctuations in the market prices of securities and interest rates may affect our investment opportunities and the value of our investments. Blackstone’s financial condition may be adversely affected by a significant economic downturn and it may be subject to legal, regulatory, reputational and other unforeseen risks that could have a material adverse effect on Blackstone’s businesses and operations (including the Adviser).

A depression, recession or slowdown in the U.S. real estate market or one or more regional real estate markets, and to a lesser extent, the global economy (or any particular segment thereof) would have a pronounced impact on us, the value of our assets and our profitability, impede the ability of our assets to perform under or refinance their existing obligations, and impair our ability to effectively deploy our capital or realize upon investments on favorable terms. We would also be affected by any overall weakening of, or disruptions in, the financial markets. Any of the foregoing events could result in substantial losses to our business, which losses will likely be exacerbated by the presence of leverage in our capital structure or our investments’ capital structures.

Market disruptions in a single country could cause a worsening of conditions on a regional and even global level, and economic problems in a single country are increasingly affecting other markets and economies. A continuation of this trend could result in problems in one country adversely affecting regional and even global economic conditions and markets. For example, concerns about the fiscal stability and growth prospects of certain European countries in the last economic downturn had a negative impact on most economies of the Eurozone and global markets. The occurrence of similar crises in the future could cause increased volatility in the economies and financial markets of countries throughout a region, or even globally.

Additionally, political leaders in the U.S. and certain European nations have recently been elected on protectionist platforms, fueling doubts about the future of global free trade. The U.S. government has indicated its intent to alter its approach to international trade policy and in some cases to renegotiate, or potentially terminate, certain existing bilateral or multi-lateral trade agreements and treaties with foreign countries. In addition, the U.S. government has recently imposed tariffs on certain foreign goods, including steel and aluminum and has indicated a willingness to impose tariffs on imports of other products. Some foreign governments, including China, have instituted retaliatory tariffs on certain U.S. goods and have indicated a willingness to impose additional tariffs on U.S. products. Global trade disruption, significant introductions of trade barriers and bilateral trade frictions, together with any future downturns in the global economy resulting therefrom, could adversely affect our performance.

For example, as a result of the recent financial crisis, the availability of debt financing secured by commercial real estate had been significantly restricted as a result of tightened lending standards for a prolonged period. As a result of the uncertainties in the credit market, real estate investors were unable to obtain debt financing on attractive terms, which adversely affected investment returns on acquisitions or their ability to make acquisitions or property improvements. Any future financial market disruptions may force us to use a greater proportion of our offering proceeds to finance our acquisitions and fund property improvements, reducing the cash available to pay distributions or satisfy repurchase requests and reducing the number of acquisitions we would otherwise make.

Certain countries have been susceptible to epidemics, most recently Covid-19, which has been designated as a pandemic by the World Health Organization. The outbreak of such epidemics, together with the resulting restrictions on travel or quarantines imposed, have had a negative impact on the economy and business activity globally (including in the markets in which we invest), and thereby could adversely affect the performance of our investments. Furthermore, the rapid development of epidemics could preclude prediction as to their ultimate adverse impact on economic and market conditions, and, as a result, present material uncertainty and risk with respect to us and the performance of our investments. These epidemics could have particularly adverse impacts on certain industries, such as the hospitality and leisure industries, and may also have particular negative effects on certain regions in which we own investments.

We have in the past and may in the future invest in real estate located outside of the United States and real estate debt issued in, and/or backed by real estate in, countries outside the United States, including Canada, Europe and potentially elsewhere. Non-U.S. real estate

and real estate-related investments involve certain factors not typically associated with investing in real estate and real estate-related investments in the U.S., including risks relating to (i) currency exchange matters, including fluctuations in the rate of exchange between the U.S. dollar and the various non-U.S. currencies in which such investments are denominated, and costs associated with conversion of investment principal and income from one currency into another; (ii) differences in conventions relating to documentation, settlement, corporate actions, stakeholder rights and other matters; (iii) differences between U.S. and non-U.S. real estate markets, including potential price volatility in and relative illiquidity of some non-U.S. markets; (iv) the absence of uniform accounting, auditing and financial reporting standards, practices and disclosure requirements and differences in government supervision and regulation; (v) certain economic, social and political risks, including potential exchange-control regulations, potential restrictions on non-U.S. investment and repatriation of capital, the risks associated with political, economic or social instability, including the risk of sovereign defaults, regulatory change, and the possibility of expropriation or confiscatory taxation or the imposition of withholding or other taxes on dividends, interest, capital gains, other income or gross sale or disposition proceeds, and adverse economic and political developments; (vi) the possible imposition of non-U.S. taxes on income and gains and gross sales or other proceeds recognized with respect to such investments; (vii) differing and potentially less well-developed or well-tested corporate laws regarding stakeholder rights, creditors’ rights (including the rights of secured parties), fiduciary duties and the protection of investors; (viii) different laws and regulations including differences in the legal and regulatory environment or enhanced legal and regulatory compliance; (ix) political hostility to investments by foreign investors; and (x) less publicly available information. Furthermore, while we may have the capacity, but not the obligation, to mitigate such additional risks, including through the utilization of certain foreign exchange hedging instruments, there is no guarantee that we will be successful in mitigating such risks and in turn may introduce additional risks and expenses linked to such efforts.

Our portfolio is currently concentrated in certain industries and geographies and may in the future be concentrated in a limited number of industries, geographies or investments.

Our portfolio may be heavily concentrated at any time in only a limited number of industries, geographies or investments, and, as a consequence, our aggregate return may be substantially affected by the unfavorable performance of even a single investment. Currently, our portfolio is heavily concentrated in multifamily and industrial assets and geographically concentrated in the southern and western regions of the U.S., and in particular Las Vegas, Nevada. Concentration of our investments in a particular type of asset or geography, our portfolio makes us more susceptible to fluctuations in value resulting from adverse economic or business conditions affecting that particular type of asset or geography. Our concentration in Las Vegas exposes us to risks related to the economic health and other factors unique to that city, which is in turn largely reliant on the gaming and tourist industries. See “—Our investments in real estate associated with gaming facilities will be impacted by the risks associated with the gaming industry.” For investments that the Adviser intends to finance (directly or by selling assets), there is a risk that such financing may not be completed, which could result in us holding a larger percentage of our assets in a single investment and asset type than desired. Investors have no assurance as to the degree of diversification in our investments, either by geographic region or asset type.

We may change our investment and operational policies without stockholder consent.

Except for changes to the investment restrictions contained in our charter, which require stockholder consent to amend, we may change our investment and operational policies, including our policies with respect to investments, operations, indebtedness, capitalization and distributions, at any time without the consent of our stockholders, which could result in our making investments that are different from, and possibly riskier or more highly leveraged than, the types of investments described in the Prospectus. Our board of directors also approved very broad investment guidelines with which we must comply, but these guidelines provide the Adviser with broad discretion and can be changed by our board of directors. A change in our investment strategy may, among other things, increase our exposure to real estate market fluctuations, default risk and interest rate risk, all of which could materially affect our results of operations and financial condition.

We may have difficulty selling our properties, which may limit our flexibility and ability to pay distributions.

Because real estate investments are relatively illiquid, it could be difficult for us to promptly sell one or more of our properties on favorable terms. Additionally, we have in the past and may in the future agree to lock-out or other provisions when we acquire a property that materially restrict us from selling such property or our interest in such property for a period of time. This may limit our ability to change our portfolio quickly in response to adverse changes in the performance of any such property or economic or market trends. In addition, U.S. federal tax laws that impose a 100% excise tax on gains from sales of dealer property by a REIT (generally, property held for sale, rather than investment) could limit our ability to sell properties and may affect our ability to sell properties without adversely affecting returns to our stockholders. These restrictions could adversely affect our results of operations and financial condition.

We acquire properties and portfolios of properties, including large portfolios that could result in changes to our capital structure. Our acquisition activities and their success are subject to the following risks:

In addition, while we will invest primarily in stabilized income-generating real estate, we may also acquire assets that require some amount of capital investment in order to be renovated or repositioned. These investments are generally subject to higher risk of loss than investments in stabilized real estate and there is no guarantee that any renovation or repositioning will be successful, or that the actual costs will not be greater than our estimates.

The sale and disposition of real properties carry certain litigation risks at the property level that may reduce our profitability and the return on your investment.

The acquisition, ownership and disposition of real properties carry certain specific litigation risks. Litigation may be commenced with respect to a property acquired by us in relation to activities that took place prior to our acquisition of such property. In addition, at the time of disposition of an individual property, a potential buyer may claim that it should have been afforded the opportunity to purchase the asset or alternatively that such potential buyer should be awarded due diligence expenses incurred or statutory damages for misrepresentation relating to disclosure made, if such buyer is passed over in favor of another as part of our efforts to maximize sale proceeds. Similarly, successful buyers may later sue us under various damage theories, including those sounding in tort, for losses associated with latent defects or other problems not uncovered in due diligence.

Competition for investment opportunities may reduce our profitability and the return on your investment.

We face competition from various entities for investment opportunities in properties, including other REITs, real estate operating companies, pension funds, insurance companies, investment funds and companies, partnerships and developers. In addition to third-party competitors, other programs sponsored by the Adviser and its affiliates, particularly those with investment strategies that overlap with ours, may seek investment opportunities in accordance with Blackstone’s prevailing policies and procedures. Some of these entities may have greater access to capital to acquire properties than we have. Competition from these entities may reduce the number of suitable investment opportunities offered to us or increase the bargaining power of property owners seeking to sell. Additionally, disruptions and dislocations in the credit markets could have a material impact on the cost and availability of debt to finance real estate acquisitions, which is a key component of our acquisition strategy. The lack of available debt on reasonable terms or at all could result in a further reduction of suitable investment opportunities and create a competitive advantage for other entities that have greater financial resources than we do. In addition, over the past several years, a number of real estate funds and publicly traded and non-traded REITs have been formed and others have been consolidated (and many such existing funds have grown in size) for the purpose of investing in real estate and/or real estate-related assets. Additional real estate funds, vehicles and REITs with similar investment objectives are expected to be formed in the future by other unrelated parties and further consolidations may occur (resulting in larger funds and vehicles). Consequently, it is expected that competition for appropriate investment opportunities would reduce the number of investment opportunities available to us and adversely affect the terms, including price, upon which investments can be made. This competition may cause us to acquire properties and other investments at higher prices or by using less-than-ideal capital structures, and in such case our returns will be lower and the value of our assets may not appreciate or may decrease significantly below the amount we paid for such assets. If such events occur, you may experience a lower return on your investment.

We may make a substantial amount of joint venture investments, including with Blackstone affiliates. Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on the financial condition of our joint venture partners and disputes between us and our joint venture partners.

We have made joint venture investments with third parties and we may, subject to the requirements in our charter, continue to co-invest in the future with Blackstone affiliates or third parties in partnerships or other entities that own real properties. We have entered into, and expect to continue to enter into, joint ventures as part of an acquisition with the seller of the properties. We may acquire non-controlling interests in joint ventures. Even if we have some control in a joint venture, we would not be in a position to exercise sole decision-making authority regarding the joint venture. Investments in joint ventures may, under certain circumstances, involve risks not present were another party not involved, including the possibility that joint venture partners might become bankrupt or fail to fund their required capital contributions. Joint venture partners may have economic or other business interests or goals that are inconsistent with our business interests or goals, and may be in a position to take actions contrary to our policies or objectives. Such investments may also have the potential risk of impasses on decisions, such as a sale, because neither we nor the joint venture partner would have full control over the joint venture. Disputes between us and joint venture partners may result in litigation or arbitration that would increase our expenses and prevent our officers and directors from focusing their time and effort on our business. Consequently, actions by or disputes with joint venture partners might result in subjecting properties owned by the joint venture to additional risk. In some cases, our joint venture partner may be entitled to property management fees, promote or other incentive fee payments as part of the arrangement of the joint venture. In addition, we may in certain circumstances be liable for the actions of our joint venture partners.

In addition, in connection with any investments in which we participate alongside any Other Blackstone Accounts, the Adviser may decline to exercise, or delegate to a third party, certain control, foreclosure and similar governance rights relating to such shared investments for legal, tax, regulatory or other reasons. There is no guarantee that we will be able to co-invest with any Other Blackstone Account. We will not participate in joint ventures in which we do not have or share control to the extent that we believe such participation would potentially threaten our status as a non-investment company exempt from the Investment Company Act. This may prevent us from receiving an allocation with respect to certain investment opportunities that are suitable for both us and one or more Other Blackstone Accounts.

If we have a right of first refusal to buy out a joint venture partner, we may be unable to finance such a buy-out if it becomes exercisable or we are required to purchase such interest at a time when it would not otherwise be in our best interest to do so. If our interest is subject to a buy/sell right, we may not have sufficient cash, available borrowing capacity or other capital resources to allow us to elect to purchase an interest of a joint venture partner subject to the buy/sell right, in which case we may be forced to sell our interest as the result of the exercise of such right when we would otherwise prefer to keep our interest. In some joint ventures we may be obligated to buy all or a portion of our joint venture partner’s interest in connection with a crystallization event, and we may be unable to finance such a buy-out when such crystallization event occurs, which may result in interest or other penalties accruing on the purchase price. If we buy our joint venture partner’s interest we will have increased exposure in the underlying investment. The price we use to buy our joint venture partner’s interest or sell our interest is typically determined by negotiations between us and our joint venture partner and there is no assurance that such price will be representative of the value of the underlying property or equal to our then-current valuation of our interest in the joint venture that is used to calculate our NAV. Finally, we may not be able to sell our interest in a joint venture if we desire to exit the venture for any reason or if our interest is likewise subject to a right of first refusal of our joint venture partner, our ability to sell such interest may be adversely impacted by such right. Joint ownership arrangements with Blackstone affiliates may also entail further conflicts of interest. Joint venture partners may receive ongoing fees in connection with providing service to the joint venture or its properties, including promote fees, beyond their equity investment, which would reduce the amount of our economic interest.

Some additional risks and conflicts related to our joint venture investments (including joint venture investments with Blackstone affiliates) include:

Furthermore, we may have conflicting fiduciary obligations if we acquire properties with our affiliates or other related entities; as a result, in any such transaction we may not have the benefit of arm’s-length negotiations of the type normally conducted between unrelated parties.

“Other Blackstone Accounts” means investment funds, REITs, vehicles, accounts, products and/or other similar arrangements sponsored, advised, and/or managed by Blackstone or its affiliates, whether currently in existence or subsequently established (in each case, including any related successor funds, alternative vehicles, supplemental capital vehicles, surge funds, over-flow funds, co-investment vehicles and other entities formed in connection with Blackstone or its affiliates side-by-side or additional general partner investments with respect thereto).

Acquiring or attempting to acquire multiple properties in a single transaction may adversely affect our operations.

We have in the past and may in the future acquire multiple properties in a single transaction. Portfolio acquisitions typically are more complex and expensive than single-property acquisitions, and the risk that a multiple-property acquisition does not close may be greater than in a single-property acquisition. Portfolio acquisitions may also result in us owning investments in geographically dispersed markets, placing additional demands on the Adviser in managing the properties in the portfolio. In addition, a seller may require that a group of properties be purchased as a package and/or also include certain additional investments or transactions even though, were it not part of the overall transaction, we may not want to purchase one or more properties included in such portfolio or participate in additional investments or transactions. In these situations, if we are unable to identify another person or entity to acquire the unwanted properties or investments, or if the seller imposes a lock-out period or other restriction on a subsequent sale, we may be required to operate such properties or attempt to dispose of such properties or investments (if not subject to a lock-out period). We may also share the acquisition of large portfolios of properties with our affiliates, which can result in conflicts of interest, including as to the allocation of properties within the portfolio and the prices attributable to such properties. See “Risks Related to Conflicts of Interest—We may invest in joint ventures with Other Blackstone Accounts or divide a pool of investments among us and Other Blackstone Accounts.” It may also be difficult for the Adviser to fully analyze each property in a large portfolio, increasing the risk that properties do not perform as anticipated. We also may be required to accumulate a large amount of cash to fund such acquisitions. We would expect the returns that we earn on such cash to be less than the returns on investments in real property. Therefore, acquiring multiple properties in a single transaction may reduce the overall yield on our portfolio.

In the event we obtain options to acquire properties, we may lose the amount paid for such options whether or not the underlying property is purchased.

We may obtain options to acquire certain properties. The amount paid for an option, if any, is normally surrendered if the property is not purchased and may or may not be credited against the purchase price if the property is purchased. Any unreturned option payments will reduce the amount of cash available for further investments or distributions to our stockholders.

In our due diligence review of potential investments, we may rely on third-party consultants and advisors and representations made by sellers of potential portfolio properties, and we may not identify all relevant facts that may be necessary or helpful in evaluating potential investments.

Before making investments, due diligence will typically be conducted in a manner that we deem reasonable and appropriate based on the facts and circumstances applicable to each investment. Due diligence may entail evaluation of important and complex business, financial, tax, accounting, environmental and legal issues. Outside consultants, legal advisors, appraisers, accountants, investment banks and other third parties, including affiliates of the Adviser or Blackstone, may be involved in the due diligence process to varying degrees depending on the type of investment, the costs of which will be borne by us. Such involvement of third-party advisors or consultants may present a number of risks primarily relating to the Adviser’s reduced control of the functions that are outsourced. Where affiliates of Blackstone are utilized, the Adviser’s management fee will not be offset for the fees paid or expenses reimbursed

to such affiliates. In addition, if the Adviser is unable to timely engage third-party providers, the ability to evaluate and acquire more complex targets could be adversely affected. In the due diligence process and making an assessment regarding a potential investment, the Adviser will rely on the resources available to it, including information provided by the target of the investment and, in some circumstances, third-party investigations. The due diligence investigation carried out with respect to any investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity, particularly for large portfolio investments. Moreover, such an investigation will not necessarily result in the investment being successful. There can be no assurance that attempts to provide downside protection with respect to investments, including pursuant to risk management procedures described in the Prospectus, will achieve their desired effect and potential investors should regard an investment in us as being speculative and having a high degree of risk.

There can be no assurance that the Adviser will be able to detect or prevent irregular accounting, employee misconduct or other fraudulent practices or material misstatements or omissions during the due diligence phase or during our efforts to monitor and disclose information about the investment on an ongoing basis or that any risk management procedures implemented by us will be adequate.

When conducting due diligence and making an assessment regarding an investment, the Adviser will rely on the resources available to it, including information provided or reported by the seller of the investment and, in some circumstances, third-party investigations. The due diligence investigation that the Adviser carries out with respect to any investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity. Moreover, such an investigation will not necessarily result in the investment being successful. Conduct occurring at the portfolio property, even activities that occurred prior to our investment therein, could have an adverse impact us.

In the event of fraud by the seller of any portfolio property, we may suffer a partial or total loss of capital invested in that property. An additional concern is the possibility of material misrepresentation or omission on the part of the seller. Such inaccuracy or incompleteness may adversely affect the value of our investments in such portfolio property. We will rely upon the accuracy and completeness of representations made by sellers of portfolio properties in the due diligence process to the extent reasonable when we make our investments, but cannot guarantee such accuracy or completeness.

In addition, we rely on information, including financial information and non-GAAP metrics, provided by sellers of our investments for disclosure to our investors about potential acquisitions or current assets owned by us. Accordingly, although we believe such information to be accurate, such information cannot be independently verified by the Adviser, and in some cases such information has not been independently reviewed or audited while under our ownership or control or at all. We cannot assure you that that the financial statements or metrics of properties we have acquired or will acquire would not be materially different if such statements or metrics had been independently audited or reviewed.

Consultants, legal advisors, appraisers, accountants, investment banks and other third parties may be involved in the due diligence process and/or the ongoing operation of our portfolio properties to varying degrees depending on the type of investment. For example, certain asset management and finance functions, such as data entry relating to a portfolio property, may be outsourced to a third-party service provider whose fees and expenses will be borne by such portfolio property or us. Such involvement of third party advisors or consultants may present a number of risks primarily relating to our reduced control of the functions that are outsourced.

The exit by the United Kingdom (“U.K.”) from the E.U. could adversely affect us.

The U.K. and E.U. agreed the text of a withdrawal agreement on October 17, 2019 to enable the U.K. to leave the E.U. on 31 January, 2020 with an implementation period lasting until at least December 31, 2020. This agreement was subsequently ratified by the U.K. government on January 23, 2020 and the European Parliament on January 29, 2020, and the U.K. formally left the E.U. on January 31, 2020. During the implementation period, E.U. law continues to apply in the U.K. and the U.K. maintains its E.U. single market access rights (including passport rights) and E.U. customs union membership. The U.K. government has stated its intention that the implementation period will last only until December 31, 2020.

Even though a withdrawal agreement has been ratified and an implementation period has been secured, U.K. regulated firms and other U.K. businesses could still be adversely affected by the terms ultimately agreed for a future trading relationship with the E.U. A tariff or non-tariff barrier, customs checks, the inability to provide cross-border services, changes in withholding tax, restrictions on movements of employees, restrictions on the transfer of personal data, etc., all have the potential to materially impair the profitability of a business, require it to adapt, or even relocate.

In the event that the implementation period expires without any agreement being made for a future trading relationship between the U.K. and the E.U., the U.K. will become a third country vis-à-vis the E.U. As a third country, the U.K. will cease to have access to the

single market and will no longer be a member of the E.U. customs union. The cross-border trade in goods between the U.K. and E.U. member states will, in such circumstances, depend on any multilateral trade agreements to which both the E.U. and the U.K. are parties (such as those administered by the World Trade Organization) and the provision of services by U.K. firms will be generally restricted to those that could be provided by firms established in any third country.

Without assurance as to whether any future trading relationship between the U.K. and the E.U. will be agreed, and as to the terms of any such relationship, many businesses may be unable to postpone executing their contingency plans. Contingency planning for some businesses involves re-establishing the business in another member state, moving personnel and, if applicable, seeking authorization from the local regulator – all of which are costly and disruptive.

Although it is probable that any adverse effects of the U.K.’s withdrawal from the E.U. will principally affect the U.K. (and those having an economic interest in, or connected to, the U.K.), given the size and global significance of the U.K.’s economy, unpredictability about the terms of its withdrawal and its future legal, political and/or economic relationships with Europe is likely to be an ongoing source of instability, produce significant currency fluctuations, and/or have other adverse effects on international markets, international trade agreements and/or other existing cross-border cooperation arrangements (whether economic, tax, fiscal, legal, regulatory or otherwise). The withdrawal of the U.K. from the E.U. could therefore adversely affect our business, business opportunities, results of operations, financial conditions and cash flows. In addition, although it seems less likely now than at the time of Britain’s referendum, the withdrawal of the U.K. from the E.U. could have a further destabilizing effect if any other member states were to consider withdrawing from the E.U., presenting similar and/or additional potential risks and consequences to our business and financial results.

We rely on property managers to operate our properties and leasing agents to lease vacancies in our properties.

The Adviser hires property managers to manage our properties and leasing agents to lease vacancies in our properties. These property managers may be our affiliates or partners in joint ventures that we enter into. The property managers have significant decision-making authority with respect to the management of our properties. We are particularly dependent on property managers of any hospitality and leisure properties we invest in. Our ability to direct and control how our properties are managed on a day-to-day basis may be limited because we engage other parties to perform this function. Thus, the success of our business may depend in large part on the ability of our property managers to manage the day-to-day operations and the ability of our leasing agents to lease vacancies in our properties. Any adversity experienced by, or problems in our relationship with, our property managers or leasing agents could adversely impact the operation and profitability of our properties.

We depend on tenants for our revenue, and therefore our revenue is dependent on the success and economic viability of our tenants. Our reliance on single or significant tenants in certain buildings may decrease our ability to lease vacated space and could adversely affect our income, performance, operations and ability to pay distributions.

Rental income from real property, directly or indirectly, constitutes a significant portion of our income. Delays in collecting accounts receivable from tenants could adversely affect our cash flows and financial condition. In addition, the inability of a single major tenant or a number of smaller tenants to meet their rental obligations would adversely affect our income. Therefore, our financial success is indirectly dependent on the success of the businesses operated by the tenants in our properties or in the properties securing debts we may own. The weakening of the financial condition of or the bankruptcy or insolvency of a significant tenant or a number of smaller tenants and vacancies caused by defaults of tenants or the expiration of leases may adversely affect our operations, performance and our ability to pay distributions.

Generally, under U.S. bankruptcy law, a debtor tenant has 120 days to exercise the option of assuming or rejecting the obligations under any unexpired lease for nonresidential real property, which period may be extended once by the bankruptcy court for an additional 90 days. If the tenant assumes its lease, the tenant must cure all defaults under the lease and may be required to provide adequate assurance of its future performance under the lease. If the tenant rejects the lease, we will have a claim against the tenant’s bankruptcy estate. Although rent owing for the period between filing for bankruptcy and rejection of the lease may be afforded administrative expense priority and paid in full, pre-bankruptcy arrears and amounts owing under the remaining term of the lease will be afforded general unsecured claim status (absent collateral securing the claim). Moreover, amounts owing under the remaining term of the lease will be capped. Other than equity and subordinated claims, general unsecured claims are the last claims paid in a bankruptcy and therefore funds may not be available to pay such claims in full.

Some of our properties may be leased to a single or significant tenant and, accordingly, may be suited to the particular or unique needs of such tenant. We may have difficulty replacing such a tenant if the floor plan of the vacant space limits the types of businesses that can use the space without major renovation. In addition, the resale value of the property could be diminished because the market value of a particular property will depend principally upon the value of the leases of such property.

For example, we are dependent on a subsidiary of MGM Resorts International (“MGM”) as the sole tenant of The Bellagio Las Vegas as well as the MGM Grand Las Vegas and Mandalay Bay. The rental revenue we are entitled to receive from MGM comprises a sizeable portion of our overall revenue and therefore risks related to MGM’s financial condition will expose us to risk, including adverse impacts to MGM’s business as a result of changes in market or economic conditions, natural disasters, outbreaks of an infectious disease, pandemic or any other serious public health concern, negative developments in the economy or political climate that depress travel activity, or other factors that may impact MGM’s operations or the operation of these properties. As a result, MGM has been, and may in the future be, required to suspend operations at these properties for what could be an extended period of time. Additionally, while these properties are currently suited to MGM’s needs, should MGM default under any of these leases, we may have difficulty finding a replacement tenant, any replacement tenant may not be of the same quality as MGM, the terms of any new lease may be less favorable than the terms of the current lease, or we may be required to incur significant expense to modify the properties to suit a new tenant.

Similarly, certain of our other properties, including certain industrial warehouses and student housing properties, are leased out to single tenants or tenants that are otherwise reliant on a single enterprise to remain in business and our hotel properties are generally operated by a single operator. Adverse impacts to such tenants, businesses or operators, including as a result of changes in market or economic conditions, natural disasters, outbreaks of an infectious disease, pandemic or any other serious public health concern, political events or other factors that may impact the operation of these properties, may have negative effects on our business and financial results. As a result, such tenants or operators have been, and may in the future be, required to suspend operations at our properties for what could be an extended period of time. Further, if such tenants default under their leases or such operators are unable to operate our properties, we may not be able to promptly enter into a new lease or operating arrangement for such properties, rental rates or other terms under any new leases or operating arrangements may be less favorable than the terms of the current lease or operating arrangement or we may be required to make capital improvements to such properties for a new tenant or operator, any of which could adversely impact our operating results.

We may not be able to lease properties that are vacant or become vacant because a tenant decides not to renew its lease or by the continued default of a tenant under its lease. In addition, certain of the properties we acquire may have some level of vacancy at the time of acquisition. Certain other properties may be specifically suited to the particular needs of a tenant and may become vacant after we acquire them. Even if a tenant renews its lease or we enter into a lease with a new tenant, the terms of the new lease may be less favorable than the terms of the old lease. In addition, the resale value of the property could be diminished because the market value may depend principally upon the value of the property’s leases. If we are unable to promptly renew or enter into new leases, or if the rental rates are lower than expected, our results of operations and financial condition will be adversely affected. For example, following the termination or expiration of a tenant’s lease there may be a period of time before we will begin receiving rental payments under a replacement lease. During that period, we will continue to bear fixed expenses such as interest, real estate taxes, maintenance, security, repairs and other operating expenses. In addition, declining economic conditions may impair our ability to attract replacement tenants and achieve rental rates equal to or greater than the rents paid under previous leases. Increased competition for tenants may require us to make capital improvements to properties which would not have otherwise been planned. Any unbudgeted capital improvements that we undertake may divert cash that would otherwise be available for distributions or for satisfying repurchase requests. Ultimately, to the extent that we are unable to renew leases or re-let space as leases expire, decreased cash flow from tenants will result, which could adversely impact our operating results.

We may be required to expend funds to correct defects or to make improvements before a tenant can be found for a property at an attractive lease rate or an investment in a property can be sold. No assurance can be given that we will have funds available to correct those defects or to make those improvements. In acquiring a property, we may agree to lock-out provisions that materially restrict us from selling that property for a period of time or impose other restrictions, such as a limitation on the amount of debt that can be placed on that property. These factors and others that could impede our ability to respond to adverse changes in the performance of our properties could significantly affect our financial condition and operating results.

Most leases with retail tenants contain provisions giving the particular tenant the exclusive right to sell particular types of merchandise or provide specific types of services within the particular retail center. These provisions may limit the number and types of prospective tenants interested in leasing space in a particular retail property.

We face significant competition from owners, operators and developers of properties. Substantially all of our properties will face competition from similar properties in the same market. This competition may affect our ability to attract and retain tenants and may

reduce the rents we are able to charge. These competing properties may have vacancy rates higher than our properties, which may result in their owners being willing to lease available space at lower prices than the space in our properties. If one of our properties were to lose an anchor tenant, this could impact the leases of other tenants, who may be able to modify or terminate their leases as a result.

We may seek to negotiate longer-term leases to reduce the cash flow volatility associated with lease rollovers, provided that contractual rent increases are generally included. In addition, where appropriate, we will seek leases that provide for operating expenses, or expense increases, to be paid by the tenants. These leases may allow tenants to renew the lease with pre-defined rate increases. If we do not accurately judge the potential for increases in market rental rates, or if our negotiated increases provide for a discount to then-current market rental rates (in exchange for lower volatility), we may set the rental rates of these long-term leases at levels such that even after contractual rental increases, the resulting rental rates are less than then-current market rental rates. Further, we may be unable to terminate those leases or adjust the rent to then-prevailing market rates. As a result, our income and distributions to our stockholders could be lower than if we did not enter into long-term leases.

We depend on the availability of public utilities and services, especially for water and electric power. Any reduction, interruption or cancellation of these services may adversely affect us.

Public utilities, especially those that provide water and electric power, are fundamental for the sound operation of our assets. The delayed delivery or any material reduction or prolonged interruption of these services could allow tenants to terminate their leases or result in an increase in our costs, as we may be forced to use backup generators or other replacements for the reduced or interrupted utilities, which also could be insufficient to fully operate our facilities and could result in our inability to provide services.

We may experience material losses or damage related to our properties and such losses may not be covered by insurance.

We may experience material losses related to our properties arising from natural disasters and acts of God, vandalism or other crime, faulty construction or accidents, fire, outbreaks of an infectious disease, pandemic or any other serious public health concern, war, acts of terrorism or other catastrophes. We plan to carry insurance covering our properties under policies the Adviser deems appropriate. The Adviser will select policy specifications and insured limits that it believes to be appropriate and adequate given the relative risk of loss, the cost of the coverage and industry practice. Insurance policies on our properties may include some coverage for losses that are generally catastrophic in nature, such as losses due to terrorism, earthquakes and floods, but we cannot assure you that it will be adequate to cover all losses and some of our policies will be insured subject to limitations involving large deductibles or co-payments and policy limits that may not be sufficient to cover losses. In general, losses related to terrorism are becoming harder and more expensive to insure against. In some cases, the insurers exclude terrorism, in others the coverage against terrorist acts is limited, or available only for a significant price. A similar dynamic has been unfolding with respect to certain weather and fire events. As a result, not all investments may be insured against terrorism, weather or fire. If we or one or more of our tenants experience a loss that is uninsured or that exceeds policy limits, we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those properties. In addition, if the damaged properties are subject to recourse indebtedness, we would continue to be liable for the indebtedness, even if these properties were irreparably damaged. Certain of these events, such as war or an outbreak of an infectious disease, could have a broader negative impact on the global or local economy, thereby affecting us or the Adviser.

We could become subject to liability for environmental violations, regardless of whether we caused such violations.

We could become subject to liability in the form of fines or damages for noncompliance with environmental laws and regulations. These laws and regulations generally govern wastewater discharges, air emissions, the operation and removal of underground and above-ground storage tanks, the use, storage, treatment, transportation and disposal of solid hazardous materials, the remediation of contaminated property associated with the disposal of solid and hazardous materials and other health and safety-related concerns. Some of these laws and regulations may impose joint and several liability on tenants, owners or managers for the costs of investigation or remediation of contaminated properties, regardless of fault or the legality of the original disposal. Under various federal, state and local environmental laws, ordinances, and regulations, a current or former owner or manager of real property may be liable for the cost to remove or remediate hazardous or toxic substances, wastes, or petroleum products on, under, from, or in such property. These costs could be substantial and liability under these laws may attach whether or not the owner or manager knew of, or was responsible for, the presence of such contamination. Even if more than one person may have been responsible for the contamination, each liable party may be held entirely responsible for all of the clean-up costs incurred.

In addition, third parties may sue the owner or manager of a property for damages based on personal injury, natural resources, or property damage and/or for other costs, including investigation and clean-up costs, resulting from the environmental contamination.

The presence of contamination on one of our properties, or the failure to properly remediate a contaminated property, could give rise to a lien in favor of the government for costs it may incur to address the contamination, or otherwise adversely affect our ability to sell or lease the property or borrow using the property as collateral. In addition, if contamination is discovered on our properties, environmental laws may impose restrictions on the manner in which the property may be used or businesses may be operated, and these restrictions may require substantial expenditures or prevent us from entering into leases with prospective tenants. There can be no assurance that future laws, ordinances or regulations will not impose any material environmental liability, or that the environmental condition of our properties will not be affected by the operations of the tenants, by the existing condition of the land, by operations in the vicinity of the properties. There can be no assurance that these laws, or changes in these laws, will not have a material adverse effect on our business, results of operations or financial condition. We could also suffer losses if reserves or insurance proceeds prove inadequate to cover any such matters. The cost to perform any remediation, and the cost to defend against any related claims, could exceed the value of the relevant investment, and in such cases we could be forced to satisfy the claims from other assets and investments. We may have an indemnity from a third-party purporting to cover these liabilities, but there can be no assurance as to the financial viability of any indemnifying party at the time a claim arises. In addition, some environmental laws create a lien on a contaminated asset in favor of governments or government agencies for costs they may incur in connection with the contamination.

Our costs associated with complying with the Americans with Disabilities Act of 1990 (the “ADA”) may affect cash available for distributions.

Any domestic properties we acquire will generally be subject to the ADA. Under the ADA, all places of public accommodation are required to comply with federal requirements related to access and use by disabled persons. The ADA has separate compliance requirements for “public accommodations” and “commercial facilities” that generally require that buildings and services be made accessible and available to people with disabilities. The ADA’s requirements could require removal of access barriers and could result in the imposition of injunctive relief, monetary penalties or, in some cases, an award of damages. We may not acquire properties that comply with the ADA or we may not be able to allocate the burden on the seller or other third-party, such as a tenant, to ensure compliance with the ADA in all cases.

Our properties are, and any properties we acquire in the future will be, subject to property taxes that may increase in the future, which could adversely affect our cash flow.

Our properties are, and any properties we acquire in the future will be, subject to real and personal property taxes that may increase as property tax rates change and as the properties are assessed or reassessed by taxing authorities. Some of our leases may provide that the property taxes, or increases therein, are charged to the lessees as an expense related to the properties that they occupy. As the owner of the properties, however, we are ultimately responsible for payment of the taxes to the government. If property taxes increase, our tenants may be unable (or not obligated) to make the required tax payments, ultimately requiring us to pay the taxes. In addition, we are generally responsible for property taxes related to any vacant space. If we purchase residential properties, the leases for such properties typically will not allow us to pass through real estate taxes and other taxes to residents of such properties. Consequently, any tax increases may adversely affect our results of operations at such properties.

Certain of our investments are in the form of ground leases, which provide limited rights to the underlying property.

We hold and may in the future invest from time to time in real properties that are subject to ground leases. As a lessee under a ground lease, we may be exposed to the possibility of losing the property upon termination, or an earlier breach by us, of the ground lease, which may adversely impact our investment performance. Furthermore, ground leases generally provide for certain provisions that limit the ability to sell certain properties subject to the lease. In order to assign or transfer rights and obligations under certain ground leases, we will generally need to obtain consent of the landlord of such property, which, in turn, could adversely impact the price realized from any such sale.

Certain of our industrial properties may be special use and/or build-to-suit and may be difficult to sell or relet upon tenant defaults or lease terminations.

Certain of our industrial properties may include special use and/or build-to-suit properties. These types of properties are relatively illiquid compared to other types of real estate and financial assets and this illiquidity will limit our ability to quickly change our portfolio in response to changes in economic or other conditions. With such properties, if the current lease is terminated or not renewed, we may be required to renovate the property or to make rent concessions in order to lease the property to another tenant, finance the property or sell the property. In addition, in the event we are forced to sell the property, we may have difficulty selling it to a party other than the tenant or borrower due to the special purpose for which the property may have been designed. These and other limitations may affect our ability to sell or relet our industrial properties and adversely affect our results of operations at such properties.

A license, approval or permit may be required to acquire certain investments and their direct or indirect holding companies (or registration may be required before an acquisition can be completed). There can be no guarantee of when and if such a license, approval or permit will be obtained or if the registration will be effected.

Certain properties may require an expedited transaction, which may result in limited information being available about the property prior to its acquisition.

Investment analyses and decisions by the Adviser may be required to be undertaken on an expedited basis to take advantage of investment opportunities. In such cases, the information available to the Adviser at the time of making an investment decision may be limited, and the Adviser may not have access to detailed information regarding the investment property or portfolio of properties, such as physical characteristics, environmental matters, zoning regulations or other local conditions affecting such investment. Therefore, no assurance can be given that the Adviser will have knowledge of all circumstances that may adversely affect an investment, and we may make investments which we would not have made if more extensive due diligence had been undertaken. Because large portfolios of properties still generally require diligence to analyze individual properties, these risks are exacerbated in expedited transactions of large portfolios. In addition, the Adviser may use consultants, legal advisors, appraisers, accountants, investment banks and other third parties in connection with its evaluation and/or diligence of certain investments. No assurance can be given as to the accuracy or completeness of the information provided by such third parties, and we may incur liability as a result of such third parties’ actions.

In some cases, the success of an investment will depend, in part, on our ability to restructure and effect improvements in the operations of a property. The activity of identifying and implementing restructuring programs and operating improvements at property entails a high degree of uncertainty. There can be no assurance that we will be able to successfully identify and implement such restructuring programs and improvements.

Investments are usually governed by a complex series of legal documents and contracts. As a result, the risk of dispute over interpretation or enforceability of the documentation may be higher than for other investments. In addition, it is not uncommon for investments to be exposed to a variety of other legal risks. These can include, but are not limited to, environmental issues, land expropriation and other property-related claims, industrial action and legal action from special interest groups.

Our industrial tenants may be adversely affected by a decline in manufacturing activity in the United States.

Fluctuations in manufacturing activity in the United States may adversely affect our industrial tenants and therefore the demand for and profitability of our industrial properties. Trade agreements with foreign countries have given employers the option to utilize less expensive foreign manufacturing workers. Outsourcing manufacturing activities could reduce the demand for U.S. workers, thereby reducing the profitability of our industrial tenants and the demand for and profitability of our industrial properties.

We could be negatively impacted by the condition of Fannie Mae or Freddie Mac and by changes in government support for multifamily housing.

Fannie Mae and Freddie Mac are a major source of financing for multifamily real estate in the United States. We expect to utilize loan programs sponsored by these entities as a key source of capital to finance our growth and our operations. In September 2008, the U.S. government increased its control of Fannie Mae and Freddie Mac and placed both companies into a government conservatorship under the Federal Housing Finance Agency. In December 2009, the U.S. Treasury increased its financial support for these conservatorships. In February 2011, the Obama administration released its blueprint for winding down Fannie Mae and Freddie Mac and for reforming the system of housing finance. Since that time, members of Congress have introduced and Congressional committees have considered a substantial number of bills that include comprehensive or incremental approaches to winding down Fannie Mae and Freddie Mac or changing their purposes, businesses or operations. A decision by the U.S. government to eliminate or downscale Fannie Mae or Freddie Mac or to reduce government support for multifamily housing more generally may adversely affect interest rates, capital availability, development of multifamily communities and the value of multifamily assets and, as a result, may adversely affect our future growth and operations. Any potential reduction in loans, guarantees and credit-enhancement arrangements from Fannie Mae and Freddie Mac could jeopardize the effectiveness of the multifamily sector’s derivative securities market, potentially causing breaches in loan covenants, and through reduced loan availability, impact the value of multifamily assets, which could impair the

value of a significant portion of multifamily communities. Specifically, the potential for a decrease in liquidity made available to the multifamily sector by Fannie Mae and Freddie Mac could:

Short-term leases expose us to the effects of declining market rent and could adversely impact our ability to make cash distributions to you.

Substantially all of our multifamily leases are on a short-term basis. Because these leases generally permit the residents to leave at the end of the lease term without penalty, our rental revenues would be impacted by declines in market rents more quickly than if our leases were for longer terms.

Increased levels of unemployment could adversely affect the occupancy and rental rates of any multifamily residential properties we acquire.

Increased levels of unemployment in multifamily markets could significantly decrease occupancy and rental rates. In times of increasing unemployment, multifamily occupancy and rental rates have historically been adversely affected by:

These factors generally have contributed to lower rental rates. To the extent that we invest in any multifamily residential properties, our results of operations, financial condition and ability to make distributions to you may be adversely affected if these factors do not improve or worsen.

If any credit market disruptions or economic slowdowns occur, any investments in multifamily residential properties may face increased competition from single-family homes and condominiums for rent, which could limit our ability to retain residents, lease apartment units or increase or maintain rents.

Any multifamily communities in which we invest may compete with numerous housing alternatives in attracting residents, including single-family homes and condominiums available for rent. Such competitive housing alternatives may become more prevalent in a particular area in the event of any tightening of mortgage lending underwriting criteria, homeowner foreclosures, declines in single-family home and condominium sales or lack of available credit. The number of single-family homes and condominiums for rent in a particular area could limit our ability to retain residents, lease apartment units or increase or maintain rents.

The multifamily residential properties in which we invest must comply with the Fair Housing Amendment of 1988.

The multifamily residential properties in which we invest domestically, if any, must comply with the Fair Housing Amendment Act of 1988 (“FHAA”) which requires that multifamily communities first occupied after March 13, 1991 be accessible to handicapped residents and visitors. Compliance with the FHAA could require removal of structural barriers to handicapped access in a community, including the interiors of apartment units covered under the FHAA. Recently there has been heightened scrutiny of multifamily housing communities for compliance with the requirements of the FHAA and the ADA and an increasing number of substantial enforcement actions and private lawsuits have been brought against multifamily communities to ensure compliance with these requirements. Noncompliance with the FHAA and the ADA could result in the imposition of fines, awards of damages to private litigants, payment of attorneys’ fees and other costs to plaintiffs, substantial litigation costs and substantial costs of remediation.

The impacts of climate-related initiatives at the U.S. federal and state levels remain uncertain at this time but could result in increased operating costs.

Government authorities and various interest groups are promoting laws and regulations that could limit greenhouse gas, or GHG, emissions due to concerns over contributions to climate change. The United States Environmental Protection Agency, or EPA, has moved to regulate GHG emissions from large stationary sources, including electricity producers, and mobile sources, through fuel efficiency and other requirements, using its existing authority under the Clean Air Act. Moreover, certain state and regional programs are being implemented to require reductions in GHG emissions. Any additional taxation or regulation of energy use, including as a result of (i) the regulations that EPA has proposed or may propose in the future, (ii) state programs and regulations, or (iii) renewed GHG legislative efforts by future Congresses, could result in increased operating costs that we may not be able to effectively pass on to our tenants. In addition, any increased regulation of GHG emissions could impose substantial costs on our industrial tenants. These costs include, for example, an increase in the cost of the fuel and other energy purchased by our industrial tenants and capital costs associated with updating or replacing their trucks earlier than planned. Any such increased costs could impact the financial condition of our industrial tenants and their ability to meet their lease obligations and to lease or re-lease our properties.

Rent control and other changes in applicable laws, or noncompliance with applicable laws, could adversely affect our multifamily residential properties.

Lower revenue growth or significant unanticipated expenditures may result from changes in rent control or rent stabilization laws or other residential landlord/tenant laws. Municipalities may implement, consider or be urged by advocacy groups to consider rent control or rent stabilization laws and regulations or take other actions that could limit our ability to raise rents based on market conditions. For example, in 2016 in Mountain View, California, voters passed a referendum that limits rent increases on existing tenants (but not on new move-ins) in communities built before 1995. These initiatives and any other future enactments of rent control or rent stabilization laws or other laws regulating multifamily housing, as well as any lawsuits against us arising from such rent control or other laws, may reduce rental revenues or increase operating costs. Such laws and regulations may limit our ability to charge market rents, increase rents, evict tenants or recover increases in our operating costs and could make it more difficult for us to dispose of properties in certain circumstances. Expenses associated with investments in residential properties, such as debt service, real estate taxes, insurance and maintenance costs, are generally not reduced when circumstances cause a reduction in rental income from such properties.

The hospitality or leisure market is seasonal, highly competitive and generally subject to greater volatility than our other market segments.

The hospitality or leisure business is seasonal, highly competitive and influenced by factors such as general and local economic conditions, location, room rates, quality, service levels, reputation and reservation systems, among many other factors. The hospitality or leisure industry generally experiences seasonal slowdown in the third quarter and, to a lesser extent, in the fourth quarter of each year. As a result of such seasonality, there will likely be quarterly fluctuations in results of operations of any hospitality or leisure properties that we own. There are many competitors in this market, and these competitors may have substantially greater marketing and financial resources than those available to us. Competition also comes from non-traditional hospitality sources, such as home-sharing platforms. This competition, along with other factors, such as over-building in the hospitality or leisure industry and certain deterrents to traveling, may increase the number of rooms available and may decrease the average occupancy and room rates of our hospitality or leisure properties. The demand for rooms at any hospitality or leisure properties that we may acquire will change much more rapidly than the demand for space at other properties that we acquire. In addition, any such properties that we may own may be adversely affected by factors outside our control, such as extreme weather conditions or natural disasters, terrorist attacks or alerts, outbreaks of contagious diseases, airline strikes, economic factors and other considerations affecting travel. These factors could have a material adverse effect on our financial condition, results of operations and ability to pay distributions to stockholders.

Student housing properties are typically leased during leasing seasons, and our properties are therefore highly dependent on the effectiveness of our marketing and leasing efforts and personnel during such seasons. Additionally, our student housing properties are generally on short-term leases, exposing us to increased leasing risk. We may not be able to re-lease our properties on similar terms, if we are able to re-lease our properties at all. The terms of renewal or re-lease (including the cost of required renovations) may be less favorable to us than the prior lease. If we are unable to re-lease all or a substantial portion of our properties, or if the rental rates upon such re-leasing are significantly lower than expected rates, our cash flows from operations could be adversely affected.

Prior to the commencement of each new lease period, we prepare the units for new incoming residents. Other than revenue generated by in-place leases for returning residents, we do not generally recognize lease revenue during this period referred to as “turn” as we have no leases in place. In addition, during turn, we incur expenses preparing our units for occupancy, which we recognize immediately. This lease turn period results in seasonality in our operating results, and as a result, we may experience significantly reduced cash flows during such periods.

In addition, we may be adversely affected by a change in university admission policies. For example, if a university reduces the number of student admissions, the demand for our student housing properties may be reduced and our occupancy rates may decline. Our student housing properties also compete with university-owned student housing and other national and regional owner-operators of off-campus student housing in a number of markets as well as with smaller local owner-operators.

Retailers leasing our properties will face continued competition from shopping via the internet, discount or value retailers, factory outlet centers, wholesale clubs, mail order catalogues and operators and television shopping networks. Such competition could adversely affect our tenants and, consequently, our revenues and funds available for distribution.

Retail properties depend on anchor tenants to attract shoppers and could be adversely affected by the loss of a key anchor tenant.

Retail properties, like other properties, are subject to the risk that tenants may be unable to make their lease payments or may decline to extend a lease upon its expiration. A lease termination by a tenant that occupies a large area of a retail center (commonly referred to as an anchor tenant) could impact leases of other tenants. Other tenants may be entitled to modify the terms of their existing leases in the event of a lease termination by an anchor tenant, or the closure of the business of an anchor tenant that leaves its space vacant even if the anchor tenant continues to pay rent. Any such modifications or conditions could be unfavorable to us as the property owner and could decrease rents or expense recoveries. Additionally, major tenant closures may result in decreased customer traffic, which could lead to decreased sales at other stores. In the event of default by a tenant or anchor store, we may experience delays and costs in enforcing our rights as landlord to recover amounts due to us under the terms of our agreements with those parties.

Some businesses are rapidly evolving to make employee telecommuting, flexible work schedules, open workplaces and teleconferencing increasingly common. These practices enable businesses to reduce their space requirements. A continuation of the movement towards these practices could over time erode the overall demand for office space and, in turn, place downward pressure on occupancy, rental rates and property valuations, each of which could have an adverse effect on our financial position, results of operations, cash flows and ability to make expected distributions to our stockholders. We may also be negatively impacted by competition from other short-term office or shared space leasing companies.

We could be negatively impacted by increased competition, decreased demand and restrictive zoning ordinances in the manufactured housing markets in which we invest.

The manufactured housing industry is generally subject to many of the same national and regional economic and demographic factors that affect the housing industry generally. These factors, including shortage of consumer financing, public’s perception, consumer confidence, inflation, regional population and employment trends, availability of and cost of alternative housing, weather conditions and general economic conditions, tend to impact manufactured homes to a greater degree than traditional residential homes. Our operating results from our manufactured housing investments may be adversely affected by: (i) competition from other available manufactured housing sites or available land for the placement of manufactured homes outside of established communities and alternative forms of housing (such as apartment buildings and site built single-family homes) and (ii) local real estate market conditions such as the oversupply of manufactured housing sites or a reduction in demand for manufactured housing sites in an area. In addition, the inability to secure zoning permits from local authorities may pose the most significant barrier to entry for developing new manufactured housing sites.

We may hold loans secured by manufactured homes, which generally have higher delinquency and default rates than standard residential mortgage loans due to various factors, including, among other things, the manner in which borrowers have handled previous credit, the absence or limited extent of borrowers’ prior credit history, limited financial resources, frequent changes in or loss of employment and changes in borrowers’ personal or domestic situations that affect their ability to repay loans. Any substantial economic slowdown could increase delinquencies, defaults, repossessions and foreclosures with respect to manufactured homes. Also, the value of manufactured homes may depreciate over time, which can negatively impact the manufactured home industry and lead to increased defaults and delinquencies and lower recovery rates upon default.

Our investments in real estate associated with gaming facilities will be impacted by the risks associated with the gaming industry.

We invest in real estate associated with gaming facilities, which are subject to risks associated with the gaming industry, including changes in consumer trends, the impact of gaming regulations on us and/or our tenants, reductions in discretionary consumer spending and corporate spending on conventions and business development and preferences, changes in laws or foreign monetary policies that impact consumer behavior, and other factors over which we have no control. Economic contraction, economic uncertainty or the perception by potential customers of weak or weakening economic conditions may cause a decline in demand for hotels, casino resorts, trade shows and conventions. Such investments may also be affected by risks relating to the tourism industry for the geographic areas in which our properties are located, including cost and availability of air services or other travel methods.

The gaming industry is characterized by a high degree of competition among a large number of participants, including riverboat casinos, dockside casinos, land-based casinos, video lottery, sweepstakes and poker machines not located in casinos, Native American gaming, internet lotteries and other internet wagering gaming services and, in a broader sense, gaming operators face competition from all manner of leisure and entertainment activities. Gaming competition is intense in the markets where our facilities are located. Recently, there has been additional significant competition in the gaming industry as a result of the upgrading or expansion of facilities by existing market participants, the entrance of new gaming participants into a market, the growth of general internet and electronic sports-related gaming and legislative changes, including relating to sports betting. As competing properties and new markets are opened, we and our tenants may be negatively impacted.

We invest in commercial properties subject to net leases, which could subject us to losses.

We invest in commercial properties subject to net leases. Typically, net leases require the tenants to pay substantially all of the operating costs associated with the properties. As a result, the value of, and income from, investments in commercial properties subject to net leases will depend, in part, upon the ability of the applicable tenant to meet its obligations to maintain the property under the terms of the net lease. If a tenant fails or becomes unable to so maintain a property, we will be subject to all risks associated with owning the underlying real estate. In addition, we may have limited oversight into the operations or the managers of these properties, subject to the terms of the net leases.

Certain commercial properties subject to net leases in which we invest are occupied by a single tenant and, therefore, the success of such investments are largely dependent on the financial stability of each such tenant. A default of any such tenant on its lease payments to us would cause us to lose the revenue from the property and cause us to have to find an alternative source of revenue to meet any mortgage payment and prevent a foreclosure if the property is subject to a mortgage. In the event of a default, we may experience delays in enforcing our rights as landlord and may incur substantial costs in protecting our investment and re-letting our property. If a lease is terminated, we may also incur significant losses to make the leased premises ready for another tenant and experience difficulty or a significant delay in re-leasing such property.

In addition, net leases typically have longer lease terms and, thus, there is an increased risk that contractual rental increases in future years will fail to result in fair market rental rates during those years.

We may acquire these investments through sale-leaseback transactions, which involve the purchase of a property and the leasing of such property back to the seller thereof. If we enter into a sale-leaseback transaction, we will seek to structure any such sale-leaseback transaction such that the lease will be characterized as a “true lease” for U.S. federal income tax purposes, thereby allowing us to be treated as the owner of the property for U.S. federal income tax purposes. However, we cannot assure you that the IRS will not challenge such characterization. In the event that any such sale-leaseback transaction is challenged and recharacterized as a financing transaction or loan for U.S. federal income tax purposes, deductions for depreciation and cost recovery relating to such property would be disallowed, and the timing of our income inclusion could differ from that of the lease payments. If a sale-leaseback transaction were so recharacterized (or otherwise not respected as a lease), we might fail to satisfy the REIT qualification “asset tests” or “income

tests” and, consequently, lose our REIT status effective with the year of recharacterization. Alternatively, the amount of our REIT taxable income could be recalculated, which might also cause us to fail to meet the REIT distribution requirement for a taxable year.

If a tenant of a net lease defaults and we are unable to find a replacement tenant, we may attempt to hold and operate the relevant property ourselves through a taxable REIT subsidiary, which would subject income on the property to corporate-level taxation, thereby reducing our funds available for distribution. In certain circumstances, depending on how much capacity we have available of the total value we are permitted to hold in taxable REIT subsidiaries under applicable rules, we may not be able to hold and operate the property in a taxable REIT subsidiary, which could result in the property and the related income not satisfying the REIT qualification asset and income tests and could jeopardize our REIT status.

Technological or other innovations may disrupt the markets and sectors in which we operate and subject us to increased competition or negatively impact the tenants of our properties and the value of our properties.

Current trends in the real estate market and the sectors in which we invest generally have been toward disrupting the industry with technological or other innovations, and multiple young companies have been successful in capitalizing on this trend toward disruption. In this period of rapid technological and commercial innovation, new businesses and approaches may be created that could affect us, tenants of our properties or our investments or alter the market practices that help frame our strategy. For example, the value of our hospitality properties is affected by competition from the non-traditional hospitality sector (such as short-term rental services), our office properties are affected by competition from shared office spaces (including co-working environments), our retail properties may be affected by changes in consumer behavior, including increased shopping via the internet, and our warehouse industrial properties may be affected if supply chains evolve in a way that decreases the need for traditional warehousing. Any of these new approaches could damage our investments, significantly disrupt the market in which we operate and subject us to increased competition, which could materially and adversely affect our business, financial condition and results of investments. Moreover, given the pace of innovation in recent years, the impact on a particular investment may not have been foreseeable at the time we made the investment. Furthermore, we could base investment decisions on views about the direction or degree of innovation that prove inaccurate and lead to losses.

Our self-storage investments are subject to risks from fluctuating demand and competition in the self-storage industry.

Our self-storage investments are subject to operating risks common to the self-storage industry, which include business layoffs or downsizing, industry slowdowns, relocation of businesses and changing demographics, changes in supply of, or demand for, similar or competing self-storage properties in an area and the excess amount of self-storage space in a particular market, changes in market rental rates and inability to collect rents from customers. The self-storage industry has at times experienced overbuilding in response to perceived increases in demand. A recurrence of overbuilding might cause our self-storage investments to experience a decrease in occupancy levels, as well as limit the ability to increase rents and offer discounted rents.

Investments in real estate debt are subject to risks including various creditor risks and early redemption features which may materially adversely affect our results of operations and financial condition.

The debt and other interests in which we may invest may include secured or unsecured debt at various levels of an issuer’s capital structure. The real estate debt in which we may invest may not be protected by financial covenants or limitations upon additional indebtedness, may be illiquid or have limited liquidity, and may not be rated by a credit rating agency. Real estate debt is also subject to other creditor risks, including (i) the possible invalidation of an investment transaction as a “fraudulent conveyance” under relevant creditors’ rights laws, (ii) so-called lender liability claims by the issuer of the obligation and (iii) environmental liabilities that may arise with respect to collateral securing the obligations. Our investments may be subject to early redemption features, refinancing options, pre-payment options or similar provisions which, in each case, could result in the issuer repaying the principal on an obligation held by us earlier than expected, resulting in a lower return to us than anticipated or reinvesting in a new obligation at a lower return to us.

Our debt investments face prepayment risk and interest rate fluctuations that may adversely affect our results of operations and financial condition.

During periods of declining interest rates, the issuer of a security or borrower under a loan may exercise its option to prepay principal earlier than scheduled, forcing us to reinvest the proceeds from such prepayment in lower yielding securities or loans, which may result in a decline in our return. Debt investments frequently have call features that allow the issuer to redeem the security at dates prior to its stated maturity at a specified price (typically greater than par) only if certain prescribed conditions are met. An issuer may

choose to redeem debt if, for example, the issuer can refinance the debt at a lower cost due to declining interest rates or an improvement in the credit standing of the issuer. In addition, the market price of our investments will change in response to changes in interest rates and other factors. During periods of declining interest rates, the market price of fixed-rate debt investments generally rises. Conversely, during periods of rising interest rates, the market price of such investments generally declines. The magnitude of these fluctuations in the market price of debt investments is generally greater for securities with longer maturities. If the U.S. Federal Reserve or other relevant central banks increase benchmark interest rates, this could also negatively impact the price of debt instruments and could adversely affect the value of our investments and the NAV and price per share of our shares.

Reinvestment risk could affect the price for our shares or their overall returns.

Reinvestment risk is the risk that income from our portfolio will decline if we invest the proceeds from matured, traded or called securities at market interest rates that are below our securities portfolio’s current earnings rate. A decline in income could affect the NAV of our shares or their overall returns.

Debt-oriented real estate investments face a number of general market-related risks that can affect the creditworthiness of issuers, and modifications to certain loan structures and market terms make it more difficult to monitor and evaluate investments.

We invest in real estate debt investments. Any deterioration of real estate fundamentals generally, and in the United States in particular, could negatively impact our performance by making it more difficult for issuers to satisfy their debt payment obligations, increasing the default risk applicable to issuers, and/or making it relatively more difficult for us to generate attractive risk-adjusted returns. Changes in general economic conditions will affect the creditworthiness of issuers and/or real estate collateral relating to our investments and may include economic and/or market fluctuations, changes in environmental and zoning laws, casualty or condemnation losses, regulatory limitations on rents, decreases in property values, changes in the appeal of properties to tenants, changes in supply and demand for competing properties in an area (as a result, for instance, of overbuilding), fluctuations in real estate fundamentals (including average occupancy, operating income and room rates for hotel properties), the financial resources of tenants, changes in availability of debt financing which may render the sale or refinancing of properties difficult or impracticable, changes in building, environmental and other laws, energy and supply shortages, various uninsured or uninsurable risks, natural disasters, political events, trade barriers, currency exchange controls, changes in government regulations (such as rent control), changes in real property tax rates and operating expenses, changes in interest rates, changes in the availability of debt financing and/or mortgage funds which may render the sale or refinancing of properties difficult or impracticable, increased mortgage defaults, increases in borrowing rates, outbreaks of an infectious disease, epidemics/pandemics or other serious public health concerns, negative developments in the economy or political climate that depress travel activity (including restrictions on travel or quarantines imposed), environmental liabilities, contingent liabilities on disposition of assets, acts of God, terrorist attacks, war, demand and/or real estate values generally and other factors that are beyond the control of the Adviser. Such changes may develop rapidly and it may be difficult to determine the comprehensive impact of such changes on our investments, particularly for investments that may have inherently limited liquidity. These changes may also create significant volatility in the markets for our investments which could cause rapid and large fluctuations in the values of such investments. There can be no assurance that there will be a ready market for the resale of our debt investments because such investments may not be liquid. Illiquidity may result from the absence of an established market for the investments, as well as legal or contractual restrictions on their resale by us. The value of securities of companies which service the real estate business sector may also be affected by such risks.

The Adviser cannot predict whether economic conditions generally, and the conditions for real estate debt investing in particular, will deteriorate in the future. Declines in the performance of the U.S. and global economies or in the real estate debt markets could have a material adverse effect on our investment activities. In addition, market conditions relating to real estate debt investments have evolved since the financial crisis, which has resulted in a modification to certain loan structures and market terms. For example, it has become increasingly difficult for real estate debt investors in certain circumstances to receive full transparency with respect to underlying investments because transactions are often effectuated on an indirect basis through pools or conduit vehicles rather than directly with the borrower. These and other similar changes in loan structures or market terms may make it more difficult for us to monitor and evaluate investments.

The operating and financial risks of issuers and the underlying default risk across capital structures may adversely affect our results of operations and financial condition.

Our securities investments involve credit or default risk, which is the risk that an issuer or borrower will be unable to make principal and interest payments on its outstanding debt when due. The risk of default and losses on real estate debt instruments will be affected by a number of factors, including global, regional and local economic conditions, interest rates, the commercial real estate market in general, an issuer’s equity and the financial circumstances of the issuer, as well as general economic conditions. Such default risk will be heightened to the extent we make relatively junior investments in an issuer’s capital structure since such investments are structurally subordinate to more senior tranches in such issuer’s capital structure, and our overall returns would be adversely affected

to the extent one or more issuers is unable to meet its debt payment obligations when due. To the extent we hold an equity or “mezzanine” interest in any issuer that is unable to meet its debt payment obligations, such equity or mezzanine interest could become subordinated to the rights of such issuer’s creditors in a bankruptcy. See “—We invest in subordinated debt, which is subject to greater credit risk than senior debt” below. Furthermore, the financial performance of one or more issuers could deteriorate as a result of, among other things, adverse developments in their businesses, changes in the competitive environment or an economic downturn. As a result, underlying properties or issuers that we expected to be stable may operate, or expect to operate, at a loss or have significant fluctuations in ongoing operating results, may otherwise have a weak financial condition or be experiencing financial distress and subject our investments to additional risk of loss and default.

We generally invest in high-yield debt which is generally subject to more risk than higher rated securities.

Debt that is, at the time of purchase, rated below investment grade (below Baa by Moody’s and below BBB by S&P and Fitch), an equivalent rating assigned by another nationally recognized statistical rating organization or unrated but judged by the Adviser to be of comparable quality are commonly referred to as “high-yield” securities.

Investments in high-yield securities generally provide greater income and increased opportunity for capital appreciation than investments in higher quality securities, but they also typically entail greater price volatility and principal and income risk, including the possibility of issuer default and bankruptcy. High-yield securities are regarded as predominantly speculative with respect to the issuer’s continuing ability to meet principal and interest payments. Debt instruments in the lowest investment grade category also may be considered to possess some speculative characteristics by certain rating agencies. In addition, analysis of the creditworthiness of issuers of high-yield securities may be more complex than for issuers of higher quality securities.

High-yield securities may be more susceptible to real or perceived adverse economic and competitive industry conditions than investment grade securities. A projection of an economic downturn or of a period of rising interest rates, for example, could cause a decline in high yield security prices because the advent of a recession could lessen the ability of an issuer to make principal and interest payments on its debt obligations. If an issuer of high yield securities defaults, in addition to risking non-payment of all or a portion of interest and principal, we may incur additional expenses to seek recovery. The market prices of high-yield securities structured as zero-coupon, step-up or payment-in-kind securities will normally be affected to a greater extent by interest rate changes, and therefore tend to be more volatile than the prices of securities that pay interest currently and in cash.

The secondary market on which high-yield securities are traded may be less liquid than the market for investment grade securities. Less liquidity in the secondary trading market could adversely affect the price at which we could sell a high yield security, and could adversely affect the NAV of our shares. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the values and liquidity of high yield securities, especially in a thinly-traded market. When secondary markets for high yield securities are less liquid than the market for investment grade securities, it may be more difficult to value the securities because such valuation may require more research, and elements of judgment may play a greater role in the valuation because there is less reliable, objective data available. During periods of thin trading in these markets, the spread between bid and asked prices is likely to increase significantly and we may have greater difficulty selling our portfolio securities. We will be more dependent on the Adviser’s research and analysis when investing in high-yield securities.

Some of our securities investments may become distressed, which securities would have a high risk of default and may be illiquid.

While it is generally anticipated that our real estate-related investments will focus primarily on investments in non-distressed real estate-related interests (based on our belief that there is not a low likelihood of repayment), our investments may become distressed following our acquisition thereof. Additionally, we may invest in real estate debt that we believe are available to purchase at “discounted” rates or “undervalued” prices. Purchasing real estate debt at what may appear to be “undervalued” or “discounted” levels is no guarantee that these investments will generate attractive returns to us or will not be subject to further reductions in value. There is no assurance that such investments can be acquired at favorable prices, that such investments will not default, or that the market for such interests will improve. In addition, the market conditions for investment in real estate debt may deteriorate further, which could have an adverse effect on the performance of our investments.

During an economic downturn or recession, securities of financially troubled or operationally troubled issuers are more likely to go into default than securities of other issuers. Securities of financially troubled issuers and operationally troubled issuers are less liquid and more volatile than securities of companies not experiencing financial difficulties. The market prices of such securities are subject to erratic and abrupt market movements and the spread between bid and asked prices may be greater than normally expected. Investment in the securities of financially troubled issuers and operationally troubled issuers involves a high degree of credit and market risk. There is no assurance that the Adviser will correctly evaluate the value of the assets collateralizing such investments or the prospects for a successful reorganization or similar action.

These financial difficulties may never be overcome and may cause issuers to become subject to bankruptcy or other similar administrative proceedings, or may require a substantial amount of workout negotiations or restructuring, which may entail, among other things, an extension of the term, a substantial reduction in the interest rate, a substantial writedown of the principal of such investment and other concessions which could adversely affect our returns on the investment. There is a possibility that we may incur substantial or total losses on our investments and in certain circumstances, subject us to certain additional potential liabilities that may exceed the value of our original investment therein.

For example, under certain circumstances, a lender who has inappropriately exercised control over the management and policies of a debtor may have its claims subordinated or disallowed or may be found liable for damages suffered by parties as a result of such actions. In any reorganization or liquidation proceeding relating to our investments, we may lose our entire investment, may be required to accept cash or securities with a value less than our original investment and/or may be required to accept different terms, including payment over an extended period of time. In addition, under certain circumstances payments to us may be reclaimed if any such payment or distribution is later determined to have been a fraudulent conveyance, preferential payment, or similar transactions under applicable bankruptcy and insolvency laws. Furthermore, bankruptcy laws and similar laws applicable to administrative proceedings may delay our ability to realize on collateral for loan positions we held, or may adversely affect the economic terms and priority of such loans through doctrines such as equitable subordination or may result in a restructure of the debt through principles such as the “cramdown” provisions of the bankruptcy laws.

However, even if a restructuring were successfully accomplished, a risk exists that, upon maturity of such investment, replacement “takeout” financing will not be available, resulting in an inability by the issuer to repay the investment. Although unlikely, it is possible that the Adviser may find it necessary or desirable to foreclose on collateral securing one or more real estate debt we acquire. The foreclosure process varies jurisdiction by jurisdiction and can be lengthy and expensive. Issuers often resist foreclosure actions by asserting numerous claims, counterclaims and defenses against the holder of a real estate loan, including, without limitation, lender liability claims and defenses, even when such assertions may have no basis in fact, in an effort to prolong the foreclosure action, which often prolongs and complicates an already difficult and time consuming process. In some states or other jurisdictions, foreclosure actions can take up to several years or more to conclude. During the foreclosure proceedings, an issuer may have the ability to file for bankruptcy, potentially staying the foreclosure action and further delaying the foreclosure process. Foreclosure litigation tends to create a negative public image of the collateral property and may result in disrupting ongoing leasing, management, development and other operations of the property. In the event we foreclose on an investment, we will be subject to the risks associated with owning and operating real estate.

Certain risks associated with CMBS may adversely affect our results of operations and financial condition.

We invest a portion of our assets in pools or tranches of CMBS, including horizontal and other risk retention investments. The collateral underlying CMBS generally consists of commercial mortgages on real property that has a multifamily or commercial use, such as retail space, office buildings, warehouse property and hotels, and which from time to time include assets or properties owned directly or indirectly by one or more Other Blackstone Accounts. CMBS have been issued in a variety of issuances, with varying structures including senior and subordinated classes. The commercial mortgages underlying CMBS generally face the risks described above in “—We may invest in commercial mortgage loans which are non-recourse in nature and include limited options for financial recovery in the event of default; an event of default may adversely affect our results of operations and financial condition.”

Mortgage-backed securities may also have structural characteristics that distinguish them from other securities. The interest rate payable on these types of securities may be set or effectively capped at the weighted average net coupon of the underlying assets themselves. As a result of this cap, the return to investors in such a security would be dependent on the relevant timing and rate of delinquencies and prepayments of mortgage loans bearing a higher rate of interest. In general, early prepayments will have a greater impact on the yield to investors. Federal and state law may also affect the return to investors by capping the interest rates payable by certain mortgagors. Certain mortgage-backed securities may provide for the payment of only interest for a stated period of time. In addition, in a bankruptcy or similar proceeding involving the originator or the servicer of the CMBS (often the same entity or an affiliate), the assets of the issuer of such securities could be treated as never having been truly sold to the originator to the issuer and could be substantively consolidated with those of the originator, or the transfer of such assets to the issuer could be voided as a fraudulent transfer.

The credit markets, including the CMBS market, have periodically experienced decreased liquidity on the primary and secondary markets during periods of market volatility. Such market conditions could re-occur and would impact the valuations of our investments and impair our ability to sell such investments if we were required to liquidate all or a portion of our CMBS investments quickly. Additionally, certain of our securities investments, such as horizontal or other risk retention investments in CMBS, may have certain holding period and other restrictions that limit our ability to sell such investments.

Concentrated CMBS investments may pose specific risks beyond the control of the Adviser that may adversely affect our results of operations and financial condition.

Default risks with respect to CMBS investments may be further pronounced in the case of single-issuer CMBSs or CMBSs secured by a small or less diverse collateral pool, which is the majority of our securities portfolio. At any one time, a portfolio of CMBS may be backed by commercial mortgage loans disproportionately secured by properties in only a few states, regions or foreign countries. As a result, such investments may be more susceptible to geographic risks relating to such areas, including adverse economic conditions, declining home values, adverse events affecting industries located in such areas and other factors beyond the control of the Adviser relative to investments in multi-issuer CMBS or a pool of mortgage loans having more diverse property locations.

The quality of the CMBS is dependent on the credit quality and selection of the mortgages for each issuance.

CMBS are also affected by the quality of the credit extended. As a result, the quality of the CMBS is dependent upon the selection of the commercial mortgages for each issuance and the cash flow generated by the commercial real estate assets, as well as the relative diversification of the collateral pool underlying such CMBS and other factors such as adverse selection within a particular tranche or issuance.

There are certain risks associated with the insolvency of obligations backing mortgage-backed securities and other investments.

The real estate loans backing the mortgage-backed securities (“MBS”) and other investments may be subject to various laws enacted in the jurisdiction or state of the borrower for the protection of creditors. If an unpaid creditor files a lawsuit seeking payment, the court may invalidate all or part of the borrower’s debt as a fraudulent conveyance, subordinate such indebtedness to existing or future creditors of the borrower or recover amounts previously paid by the borrower in satisfaction of such indebtedness, based on certain tests for borrower insolvency and other facts and circumstances, which may vary by jurisdiction. There can be no assurance as to what standard a court would apply in order to determine whether the borrower was “insolvent” after giving effect to the incurrence of the indebtedness constituting the mortgage backing the MBS and other investments, or that regardless of the method of valuation, a court would not determine that the borrower was “insolvent” after giving effect to such incurrence. In addition, in the event of the insolvency of a borrower, payments made on such mortgage loans could be subject to avoidance as a “preference” if made within a certain period of time (which may be as long as one year and one day) before insolvency.

Our MBS investments may be subject to interest shortfalls due to interest collected from the underlying loans not being sufficient to pay accrued interest to all of the MBS interest holders. Interest shortfalls to the MBS trust will occur when the servicer does not advance full interest payments on defaulted loans. The servicer in a MBS trust is required to advance monthly principal and interest payments due on a delinquent loan. Once a loan is delinquent for a period of time (generally 60 days), the servicer is required to obtain a new appraisal to determine the value of the property securing the loan. The servicer is only required to advance interest based on the lesser of the loan amount or 90%, generally, of the appraised value. Interest shortfalls occur when 90%, generally, of the appraised value is less than the loan amount and the servicer does not advance interest on the full loan amount. The resulting interest shortfalls impact interest payments on the most junior class in the trust first. As interest shortfalls increase, more senior classes may be impacted. Over time, senior classes may be reimbursed for accumulated shortfalls if the delinquent loans are resolved, but there is no guarantee that shortfalls will be collected. Interest shortfalls to the MBS trust may also occur as a result of accumulated advances and expenses on defaulted loans. When a defaulted loan or foreclosed property is liquidated, the servicer will be reimbursed for accumulated advances and expenses prior to payments to MBS bond holders. If proceeds are insufficient to reimburse the servicer or if a defaulted loan is modified and not foreclosed, the servicer is able to make a claim on interest payments that is senior to the bond holders to cover accumulated advances and expenses. If the claim is greater than interest collected on the loans, interest shortfalls could impact one or more bond classes in a MBS trust until the servicer’s claim is satisfied.

We have acquired and expect in the future to acquire MBS affiliated with Blackstone.

We have acquired and expect in the future to acquire MBS whereby mortgages underlying the MBS were issued or acquired by, properties underlying the mortgages in the MBS are owned by, and/or the MBS is serviced or structured by, a Blackstone affiliate. While we may acquire such MBS from third parties on terms already negotiated by and agreed with third parties and will forgo all non-economic rights (including voting rights) in such MBS as long as the affiliation persists, which we believe should mostly mitigate any conflicts of interest, there is no assurance that such procedures will adequately address all of the conflicts of interest that may arise or will address such conflicts in a manner that results in the allocation of a particular investment opportunity to us or is otherwise favorable to us. While the mortgage loans underlying such MBS are generally made in advance of any issuance of the MBS, our investment, or the expectation of our investment, in such an MBS may have the potential to affect the pricing terms of underlying

mortgage loans for properties owned by Other Blackstone Accounts. Since certain of our executives are also executives of Blackstone, the same personnel may determine the price and terms for the investments for both us and these entities and there can be no assurance that any procedural protections, such as obtaining market prices or other reliable indicators of fair value, will prevent the consideration we pay for these investments from exceeding their fair value or ensure that we receive terms for a particular investment opportunity that are as favorable as those available from an independent third party.

Our CMBS investments face risks associated with extensions that may adversely affect our results of operations and financial condition.

Our CMBS and other investments may be subject to extension, resulting in the term of the securities being longer than expected. Extensions are affected by a number of factors, including the general availability of financing in the market, the value of the related mortgaged property, the borrower’s equity in the mortgaged property, the financial circumstances of the borrower, fluctuations in the business operated by the borrower on the mortgaged property, competition, general economic conditions and other factors. Such extensions may also be made without the Adviser’s consent.

There are certain risks associated with the servicers of commercial real estate loans underlying CMBS and other investments.

The exercise of remedies and successful realization of liquidation proceeds relating to commercial real estate loans underlying CMBS and other investments may be highly dependent on the performance of the servicer or special servicer. The servicer may not be appropriately staffed or compensated to immediately address issues or concerns with the underlying loans. Such servicers may exit the business and need to be replaced, which could have a negative impact on the portfolio due to lack of focus during a transition. Special servicers frequently are affiliated with investors who have purchased the most subordinate bond classes, and certain servicing actions, such as a loan extension instead of forcing a borrower pay off, may benefit the subordinate bond classes more so than the senior bonds. While servicers are obligated to service the portfolio subject to a servicing standard and maximize the present value of the loans for all bond classes, servicers with an affiliate investment in the CMBS or other investments may have a conflict of interest. There may be a limited number of special servicers available, particularly those which do not have conflicts of interest. In addition, to the extent any such servicers fail to effectively perform their obligations pursuant to the applicable servicing agreements, such failure may adversely affect our investments.

We may invest in commercial mortgage loans which are non-recourse in nature and include limited options for financial recovery in the event of default; an event of default may adversely affect our results of operations and financial condition.

We may invest from time to time in commercial mortgage loans, including mezzanine loans and B-notes, which are secured by multifamily, commercial or other properties and are subject to risks of delinquency and foreclosure and risks of loss. Commercial real estate loans are generally not fully amortizing, which means that they may have a significant principal balance or balloon payment due on maturity. Full satisfaction of the balloon payment by a commercial borrower is heavily dependent on the availability of subsequent financing or a functioning sales market, as well as other factors such as the value of the property, the level of prevailing mortgage rates, the borrower’s equity in the property and the financial condition and operating history of the property and the borrower. In certain situations, and during periods of credit distress, the unavailability of real estate financing may lead to default by a commercial borrower. In addition, in the absence of any such takeout financing, the ability of a borrower to repay a loan secured by an income-producing property will depend upon the successful operation of such property rather than upon the existence of independent income or assets of the borrower. If the net operating income of the property is reduced, the borrower’s ability to repay the loan may be impaired. Furthermore, we may not have the same access to information in connection with investments in commercial mortgage loans, either when investigating a potential investment or after making an investment, as compared to publicly traded securities.

Commercial mortgage loans are usually non-recourse in nature. Therefore, if a commercial borrower defaults on the commercial mortgage loan, then the options for financial recovery are limited in nature. To the extent the underlying default rates with respect to the pool or tranche of commercial real estate loans in which we directly or indirectly invest increase, the performance of our investments related thereto may be adversely affected. Default rates and losses on commercial mortgage loans will be affected by a number of factors, including global, regional and local economic conditions in the area where the mortgage properties are located, the borrower’s equity in the mortgage property, the financial circumstances of the borrower, tenant mix and tenant bankruptcies, property management decisions, including with respect to capital improvements, property location and condition, competition from other properties offering the same or similar services, environmental conditions, real estate tax rates, tax credits and other operating expenses, governmental rules, regulations and fiscal policies, acts of God, terrorism, social unrest and civil disturbances. A continued decline in specific commercial real estate markets and property valuations may result in higher delinquencies and defaults and potentially foreclosures. In the event of default, the lender will have no right to assets beyond collateral attached to the commercial mortgage loan. The overall level of commercial mortgage loan defaults remains significant and market values of the underlying commercial real estate remain distressed in many cases. It has also become increasingly difficult for lenders to dispose of foreclosed commercial real estate without incurring substantial investment losses, ultimately leading to a decline in the value of such investments.

In the event of any default under a mortgage or real estate loan held directly by us, we will bear a risk of loss of principal to the extent of any deficiency between the value of the collateral and the principal and accrued interest of the mortgage or real estate loan, which could have a material adverse effect on our profitability. In the event of the bankruptcy of a mortgage or real estate loan borrower, the mortgage or real estate loan to such borrower will be deemed to be secured only to the extent of the value of the underlying collateral at the time of bankruptcy (as determined by the bankruptcy court), and the lien securing the mortgage or real estate loan will be subject to the avoidance powers of the bankruptcy trustee or debtor-in-possession to the extent the lien is unenforceable under state law. Additionally, in the event of a default under any senior debt, the junior or subordinate lender generally forecloses on the equity, purchases the senior debt or negotiates a forbearance or restructuring arrangement with the senior lender in order to preserve its collateral.

We may invest in structured products or similar products that may include structural and legal risks.

We have and in the future may invest from time to time in structured products, including pools of mortgages, loans and other real-estate related interests. These investments may include debt securities issued by a private investment fund that invests, on a leveraged basis, in bank loans, high-yield debt or other asset groups, certificates issued by a structured investment vehicle that holds pools of commercial mortgage loans. We have and in the future may also invest in credit risk transfer notes that, while not structured products, face similar risks as structured products because they are debt securities issued by governmental agencies but their value depends in part on a pool of mortgage loans. Our investments in structured products are subject to a number of risks, including risks related to the fact that the structured products will be leveraged, and other structural and legal risks related thereto. Utilization of leverage is a speculative investment technique and will generally magnify the opportunities for gain and risk of loss borne by an investor investing in the subordinated debt securities. Many structured products contain covenants designed to protect the providers of debt financing to such structured products. A failure to satisfy those covenants could result in the untimely liquidation of the structured product and a complete loss of our investment therein. In addition, if the particular structured product is invested in a security in which we are also invested, this would tend to increase our overall exposure to the credit of the issuer of such securities, at least on an absolute, if not on a relative basis. The value of an investment in a structured product will depend on the investment performance of the assets in which the structured product invests and will, therefore, be subject to all of the risks associated with an investment in those assets. These risks include the possibility of a default by, or bankruptcy of, the issuers of such assets or a claim that the pledging of collateral to secure any such asset constituted a fraudulent conveyance or preferential transfer that can be subordinated to the rights of other creditors of the issuer of such asset or nullified under applicable law.

We have and may in the future acquire and sell residential credit investments, which may subject us to legal, regulatory and other risks that could adversely impact our business and financial results.

We have and may in the future invest directly and indirectly in residential credit investments, which may include performing loans, nonperforming loans, residential mortgage loans and RMBS, which represent interests in pools of residential mortgage loans secured by one to four family residential mortgage loans. Investments in residential credit (including RMBS) are subject to various risks and uncertainties, including credit, market, interest rate, structural and legal risk. These risks may be magnified by volatility in the economy and in real estate markets generally. Any downturn in the U.S. or global economies may adversely affect the financial condition of residential owners and tenants, making it more difficult for them to meet their periodic repayment obligations relating to residential real estate. Residential credits are not traded on an exchange and there may be a limited market for the securities, especially when there is a perceived weakness in the mortgage and real estate market sectors. In addition, interest and principal payments for RMBS are made more frequently than traditional debt securities and the principal of any RMBS may often be prepaid at any time because the underlying residential mortgage loans may be prepaid at any time.

Residential mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity, although such loans may be securitized by government agencies and the securities issued may be guaranteed. The rate of defaults and losses on residential mortgage loans will be affected by a number of factors, including general economic conditions and those in the geographic area where the mortgaged property is located, the terms of the mortgage loan, the borrower’s equity in the mortgaged property, and the financial circumstances of the borrower. Certain mortgage loans may be of sub-prime credit quality (i.e., do not meet the customary credit standards of Federal National Mortgage Association (“Fannie Mae”) and Federal Home Loan Mortgage Corporation (“Freddie Mac”)). Delinquencies and liquidation proceedings are more likely with sub-prime mortgage loans than with mortgage loans that satisfy customary credit standards. If a residential mortgage loan is in default, foreclosure of such residential mortgage loan may be a lengthy and difficult process, and may involve significant expenses. Furthermore, the market for defaulted residential mortgage loans or foreclosed properties may be very limited.

Residential mortgage loans in an issue of RMBS may also be subject to various U.S. federal and state laws, foreign laws, public policies and principles of equity that protect consumers which, among other things, may regulate interest rates and other fees, require certain disclosures, require licensing of originators, prohibit discriminatory lending practices, regulate the use of consumer credit information, and regulate debt collection practices. In addition, a number of legislative proposals have been introduced in the United

States at the federal, state, and municipal level that are designed to discourage predatory lending practices. Violation of such laws, public policies, and principles may limit the servicer’s ability to collect all or part of the principal or interest on a residential mortgage loan, entitle the borrower to a refund of amounts previously paid by it, or subject the servicer to damages and administrative enforcement. Any such violation could also result in cash flow delays and losses on the related issue of RMBS.

Our investments in RMBS, which may include government mortgage pass-through securities and non-agency RMBS, are subject to certain other risks which may adversely affect our results of operations and financial condition.

Our investments in RMBS are subject to the risks of defaults, foreclosure timeline extension, fraud, home price depreciation and unfavorable modification of loan principal amount, interest rate and amortization of principal accompanying the underlying residential mortgage loans. To the extent that assets underlying our investments are concentrated geographically, by property type or in certain other respects, we may be subject to certain of the foregoing risks to a greater extent. In the event of defaults on the residential mortgage loans that underlie our investments in RMBS and the exhaustion of any underlying or any additional credit support, we may not realize our anticipated return on our investments and we may incur a loss on these investments. At any one time, a portfolio of RMBS may be backed by residential mortgage loans with disproportionately large aggregate principal amounts secured by properties in only a few states or regions in the United States or in only a few foreign countries. As a result, the residential mortgage loans may be more susceptible to geographic risks relating to such areas, such as adverse economic conditions, adverse political changes, adverse events affecting industries located in such areas and natural hazards affecting such areas, than would be the case for a pool of mortgage loans having more diverse property locations. We may also acquire non-agency RMBS, which are backed by residential property but, in contrast to agency RMBS, their principal and interest are not guaranteed by federally chartered entities such as the Fannie Mae and Freddie Mac and, in the case of the Government National Mortgage Association (“Ginnie Mae”), the U.S. government. In addition, we may invest in government mortgage pass-through securities, which represent participation interests in pools of residential mortgage loans purchased from individual lenders by a federal agency or originated by private lenders and guaranteed by a federal agency, including those issued or guaranteed by Ginnie Mae, Fannie Mae and Freddie Mac. Ginnie Mae certificates are direct obligations of the U.S. Government and, as such, are backed by the “full faith and credit” of the United States. Fannie Mae is a federally chartered, privately owned corporation and Freddie Mac is a corporate instrumentality of the United States. Fannie Mae and Freddie Mac certificates are not backed by the full faith and credit of the United States but the issuing agency or instrumentality has the right to borrow, to meet its obligations, from an existing line of credit with the U.S. Treasury. The U.S. Treasury has no legal obligation to provide such line of credit and may choose not to do so.

We will face risks related to our investments in collateralized debt obligations.

We may also invest from time to time in collateralized debt obligations (“CDOs”). CDOs include, among other things, collateralized loan obligations (“CLOs”) and other similarly structured securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. CDOs may charge a management fee and administrative expenses. For CLOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest portion is the “equity” tranche which bears the bulk of defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe circumstances. Since it is partially protected from defaults, a senior tranche from a CLO trust typically has higher ratings and lower yields than the underlying securities, and can be rated investment grade. Despite the protection from the equity tranche, CLO tranches can experience substantial losses due to actual defaults, increased sensitivity to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults and aversion to CLO securities as a class. The risks of an investment in a CDO depend largely on the type of the collateral and the class of the CDO in which we invest.

Normally, CLOs and other CDOs are privately offered and sold, and thus are not registered under the securities laws. As a result, certain investments in CDOs may be characterized as illiquid securities and volatility in CLO and CDO trading markets may cause the value of these investments to decline. Moreover, if the underlying mortgage portfolio has been overvalued by the originator, or if the values subsequently decline and, as a result, less collateral value is available to satisfy interest and principal payments and any other fees in connection with the trust or other conduit arrangement for such securities, we may incur significant losses. Also, with respect to the CLOs and CDOs in which we may invest, control over the related underlying loans will be exercised through a special servicer or collateral manager designated by a “directing certificate holder” or a “controlling class representative,” or otherwise pursuant to the related securitization documents. We may acquire classes of CLOs or CDOs for which we may not have the right to appoint the directing certificate holder or otherwise direct the special servicing or collateral management. With respect to the management and servicing of those loans, the related special servicer or collateral manager may take actions that could adversely affect our interests. In addition to the risks associated with debt instruments (e.g., interest rate risk and credit risk), CDOs carry additional risks including, but not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or other payments; (ii) the quality of the collateral may decline in value or default; (iii) the possibility that we may invest in CDOs that are subordinate to

other classes; and (iv) the complex structure of the security may not be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

We invest in subordinated debt, which is subject to greater credit risk than senior debt.

We have in the past and may in the future from time to time invest in debt instruments, including junior tranches of CMBS and “mezzanine” or junior mortgage loans (e.g., B-Notes), that are subordinated in an issuer’s capital structure. To the extent we invest in subordinated debt of an issuer’s capital structure, including subordinated CMBS bonds or other “mezzanine” debt, such investments and our remedies with respect thereto, including the ability to foreclose on any collateral securing such investments, will be subject to the rights of holders of more senior tranches in an issuer’s capital structure and, to the extent applicable, contractual inter-creditor, co-lender and participation agreement provisions.

Investments in subordinated debt involve greater credit risk of default and loss than the more senior classes or tranches of debt in an issuer’s capital structure. Subordinated tranches of debt instruments (including mortgage-backed securities) absorb losses from default before other more senior tranches of such instruments, which creates a risk particularly if such instruments (or securities) have been issued with little or no credit enhancement or equity. As a result, to the extent we invest in subordinate debt instruments (including mortgage-backed securities), we would likely receive payments or interest distributions after, and must bear the effects of losses or defaults on, the senior debt (including underlying mortgage loans, senior mezzanine debt or senior CMBS bonds) before, the holders of other more senior tranches of debt instruments with respect to such issuer.

Although not directly secured by the underlying real estate, mezzanine loans are also subject to risk of subordination and share certain characteristics of subordinate loan interests described above. As with commercial mortgage loans, repayment of a mezzanine loan is dependent on the successful operation of the underlying commercial properties and, therefore, is subject to similar considerations and risks. Mezzanine loans may also be affected by the successful operation of other properties, but mezzanine loans are not secured by interests in the underlying commercial properties.

With most mezzanine loans, the bulk of the loan balance is payable at maturity with a one-time “balloon payment.” Full satisfaction of the balloon payment by a borrower is heavily dependent on the availability of subsequent financing or a functioning sales market, and full satisfaction of a loan will be affected by a borrower’s access to credit or a functioning sales market. In certain situations, and during periods of credit distress, the unavailability of real estate financing may lead to default by a borrower. In addition, in the absence of any such takeout financing, the ability of a borrower to repay a loan may be impaired. Moreover, mezzanine loans are usually non-recourse in nature. Therefore, if a borrower defaults on the loan, then the options for financial recovery are limited in nature. To the extent the underlying default rates with respect to the pool or tranche of commercial real estate loans in which we directly or indirectly invests increase, the performance of the our investments related thereto may be adversely affected.

B-Notes and A/B Structures may pose additional risks that may adversely affect our results of operations and financial condition.

We may invest in B-notes, which are mortgage loans typically (i) secured by a first mortgage on a commercial property or group of related properties and (ii) subordinated to an A-note portion of the same first mortgage secured by the same collateral (which we would not expect to hold). As a result, if a borrower defaults, there may not be sufficient funds remaining to repay B-note holders after payment to the A-note holders. Since each transaction is privately negotiated, B-notes can vary in their structural characteristics and risks. In addition to the risks described above, certain additional risks apply to B-note investments, including those described herein. The B-note portion of a loan is typically small relative to the overall loan, and is in the first loss position. As a means to protect against the holder of the A-note from taking certain actions or, receiving certain benefits to the detriment of the holder of the B-note, the holder of the B-note often (but not always) has the right to purchase the A-note from its holder. If available, this right may not be meaningful to us. For example, we may not have the capital available to protect our B-note interest or purchasing the A-note may alter our overall portfolio and risk/return profile to the detriment of our stockholders. In addition, a B-note may be in the form of a “rake bond.” A “rake bond” is a CMBS backed solely by a single promissory note secured by a mortgaged property, which promissory note is subordinate in right of payment to one or more separate promissory notes secured by the same mortgaged property.

We may invest in a wide range of real estate debt pursuant to our broad investment guidelines.

Pursuant to our broad investment guidelines, our real estate debt investments may include, but are not limited to, CMBS, real estate-related corporate credit, mortgages, loans, mezzanine and other forms of debt (including residential mortgage-backed securities and other residential credit and debt of real estate-related companies), preferred equity and derivatives, and such investments may not be secured by real estate assets. The Adviser may also employ new investment techniques or invest in new instruments that it believes

will help achieve our investment objectives, whether or not such investment techniques or instruments are specifically defined herein, so long as such investments are consistent with the investment guidelines and our charter. New investment techniques or instruments may not be thoroughly tested in the market before being employed and may have operational or theoretical shortcomings which could result in unsuccessful investments and, ultimately, losses to us. In addition, any new investment technique or instrument developed by us may be more speculative than earlier investment techniques or instruments and may involve material and unanticipated risks. Our board of directors may also change our investment guidelines without the consent of our stockholders.

We invest in real estate-related equity, which is subordinate to any indebtedness, but involves different rights.

We have in the past and may in the future invest from time to time in non-controlling preferred equity positions, common equity and other real estate-related interests. Preferred equity investments generally rank junior to all existing and future indebtedness, including commercial mezzanine and mortgage loans, but rank senior to the owners’ common equity. Preferred equity investments typically pay a dividend rather than interest payments and often have the right for such dividends to accrue if there is insufficient cash flow to pay currently. These interests are not secured by the underlying real estate, but upon the occurrence of a default, the preferred equity provider typically has the right to effectuate a change of control with respect to the ownership of the property. In addition, equity investments may be illiquid or have limited liquidity due to lock-out periods, limited trading volume or other limitations or prohibitions against their transfer, sale, pledge or disposition, including any necessary registration with the SEC requiring coordination with the issuer for the sale of such securities. Our investments in real estate-related equity securities will involve risks relating to the particular issuer of the equity securities, including the financial condition and business outlook of the issuer. Issuers of real estate-related common equity securities generally invest in real estate or real estate-related assets and are subject to the inherent risks associated with real estate discussed in “—General Risks Related to Investments in Real Estate.”

We invest in real estate corporate debt, which consists of secured and unsecured obligations issued by companies in the business of owning and/or operating real estate-related businesses.

We have in the past and may in the future invest in corporate debt obligations of varying maturities issued by U.S. and foreign corporations and other business entities, which may include loans, corporate bonds, debentures, notes and other similar corporate debt instruments, including convertible securities. Bonds are fixed or variable rate debt obligations, including bills, notes, debentures, money market instruments and similar instruments and securities. Corporate debt is generally used by corporations and other issuers to borrow money from investors. The issuer pays the investor a rate of interest and normally must repay the amount borrowed on or before maturity. The rate of interest on corporate debt may be fixed, floating or variable, and may vary inversely with respect to a reference rate. The rate of return or return of principal on some debt obligations may be linked or indexed to the level of exchange rates between the U.S. dollar and a foreign currency or currencies. Debt instruments may be acquired with warrants attached. Certain bonds are “perpetual” in that they have no maturity date.

Our investments in real estate-related corporate debt are subject to a number of risks, including interest rate risk, credit risk, high yield risk, issuer risk, foreign (non-U.S.) investment risk, inflation/deflation risk, liquidity risk, smaller company risk and management risk. We generally will not have direct recourse to real estate assets owned or operated by the issuers of the corporate debt obligations that we invest in and the value of such corporate debt obligations may be impacted by numerous factors and may not be closely tied to the value of the real estate held by the corporate issuer.

We may invest in equity of other REITs that invest in real estate or real estate debt as one of their core businesses and other real estate-related companies, which subjects us to certain risks including those risks associated with an investment in our own common stock.

REITs that invest primarily in real estate or real estate debt are subject to the risks of the real estate market, the real estate debt market and the securities market.

REITs are dependent upon specialized management skills, have limited diversification and are, therefore, subject to risks inherent in financing a limited number of projects. REITs may be subject to a management fees and other expenses, and so when we invest in REITs we will bear our proportionate share of the costs of the REITs’ operations. Investing in REITs and real estate-related companies involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. The market value of REIT shares and the ability of the REIT to distribute income may be adversely affected by several factors, including the risks described herein that relate to an investment in our common stock. REITs depend generally on their ability to generate cash flow to make distributions to shareholders, and certain REITs have self-liquidation provisions by which mortgages held may be paid in full and distributions of capital returns may be made at any time. In addition, distributions received by us from REITs may consist of dividends, capital gains and/or return of capital. Generally, dividends received by us from REIT shares and distributed to our stockholders will not constitute “qualified dividend income” eligible for the reduced tax rate applicable to qualified dividend income.

In addition, the performance of a REIT may be affected by changes in the tax laws or by its failure to qualify for tax-free pass-through of income.

REITs (especially mortgage REITs) are also subject to interest rate risk. Rising interest rates may cause REIT investors to demand a higher annual yield, which may, in turn, cause a decline in the market price of the equity securities issued by a REIT.

Investing in certain REITs and real estate-related companies, which often have small market capitalizations, may also involve the same risks as investing in other small capitalization companies. REITs and real estate-related companies may have limited financial resources and their securities may trade less frequently and in limited volume and may be subject to more abrupt or erratic price movements than larger company securities.

Certain of our investments, including those that may be in a development phase, if any, are expected to require additional financing to satisfy their working capital requirements or development strategies. The amount of such additional financing needed will depend upon the maturity and objectives of the particular asset, which may be an unfavorable price at such time. Each round of financing (whether from us or other investors) is typically intended to provide enough capital to reach the next major milestone in an asset’s life-cycle. If the funds provided are not sufficient, additional capital may be required to be raised at a price unfavorable to the existing investors, including us. In addition, we may make additional debt and equity investments or exercise warrants, options, convertible securities or other rights that were acquired in the initial investment in such portfolio company in order to preserve our proportionate ownership when a subsequent financing is planned, or to protect our investment when such portfolio company’s performance does not meet expectations. The availability of capital is generally a function of capital market conditions that are beyond the control of us or any portfolio company. There can be no assurance that we or any portfolio company will be able to predict accurately the future capital requirements necessary for success or that additional funds will be available from any source. Failure to provide sufficient additional capital with respect to an investment could adversely affect our performance.

We will face “spread widening” risk related to our investment in securities.

For reasons not necessarily attributable to any of the risks set forth herein (for example, supply/demand imbalances or other market forces), the market spreads of the securities in which we invest may increase substantially causing the securities prices to fall. It may not be possible to predict, or to hedge against, such “spread widening” risk. The perceived discount in pricing described under “—Some of our securities investments may become distressed, which securities would have a high risk of default and may be illiquid.” may still not reflect the true value of the real estate assets underlying such real estate debt in which we may invest, and therefore further deterioration in value with respect thereto may occur following our investment therein. In addition, mark-to-market accounting of our investments will have an interim effect on the reported value prior to realization of an investment.

We may utilize a wide variety of derivative and other hedging instruments for risk management purposes, the use of which is a highly specialized activity that may entail greater than ordinary investment risks. Any such derivatives and other hedging transactions may not be effective in mitigating risk in all market conditions or against all types of risk (including unidentified or unanticipated risks), thereby resulting in losses to us. Engaging in derivatives and other hedging transactions may result in a poorer overall performance for us than if we had not engaged in any such transaction, and the Adviser may not be able to effectively hedge against, or accurately anticipate, certain risks that may adversely affect our investment portfolio. In addition, our investment portfolio will always be exposed to certain risks that cannot be fully or effectively hedged, such as credit risk relating both to particular securities and counterparties as well as interest rate risks. See “—We invest in derivatives, which involve numerous risks” below.

We have in the past and may in the future enter into derivatives transactions including, but not limited to, options contracts, futures contracts, options on futures contracts, forward contracts, interest rate swaps, total return swaps, credit default swaps and other swap agreements for investment, hedging or leverage purposes. Derivative instruments, especially when purchased in large amounts, may not be liquid in all circumstances, so that in volatile markets we may not be able to close out a position without incurring a loss. Our use of derivative instruments may be particularly speculative and involves investment risks and transaction costs to which we would not be subject absent the use of these instruments, and use of derivatives generally involves leverage in the sense that the investment exposure created by the derivatives may be significantly greater than our initial investment in the derivative. Leverage magnifies investment, market and certain other risks. Thus, the use of derivatives may result in losses in excess of principal and greater than if they had not been used. The value of such derivatives also depends upon the price of the underlying instrument or commodity. Such

derivatives and other customized instruments also are subject to the risk of non-performance by the relevant counterparty. In addition, actual or implied daily limits on price fluctuations and speculative position limits on the exchanges or over-the-counter markets in which we may conduct our transactions in derivative instruments may prevent prompt liquidation of positions, subjecting us to the potential of greater losses. Derivative instruments that may be purchased or sold by us may include instruments not traded over-the-counter or on an exchange. The risk of nonperformance by the obligor on such an instrument may be greater and the ease with which we can dispose of or enter into closing transactions with respect to such an instrument may be less than in the case of an exchange-traded instrument. In addition, significant disparities may exist between “bid” and “asked” prices for derivative instruments that are traded over-the-counter and not on an exchange. Such over-the-counter derivatives are also subject to types and levels of investor protections or governmental regulation that may differ from exchange traded instruments.

The ability to successfully use derivative investments depends on the ability of the Adviser. The skills needed to employ derivatives strategies are different from those needed to select portfolio investments and, in connection with such strategies, the Adviser must make predictions with respect to market conditions, liquidity, market values, interest rates or other applicable factors, which may be inaccurate. The use of derivative investments may require us to sell or purchase portfolio investments at inopportune times or for prices below or above the current market values, may limit the amount of appreciation we can realize on an investment or may cause us to hold a security that we might otherwise want to sell. We will also be subject to credit risk with respect to the counterparties to our derivatives contracts (whether a clearing corporation in the case of exchange-traded instruments or another third party in the case of over-the-counter instruments). In addition, the use of derivatives will be subject to additional unique risks associated with such instruments including a lack of sufficient asset correlation, heightened volatility in reference to interest rates or prices of reference instruments and duration/term mismatch, each of which may create additional risk of loss.

Failure to obtain and maintain an exemption from being regulated as a commodity pool operator could subject us to additional regulation and compliance requirements that could materially adversely affect our business, results of operations and financial condition.

Registration with the U.S. Commodity Futures Trading Commission (the “CFTC”) as a “commodity pool operator” or any change in our operations necessary to maintain our ability to rely upon the exemption from being regulated as a commodity pool operator could adversely affect our ability to implement our investment program, conduct our operations and/or achieve our objectives and subject us to certain additional costs, expenses and administrative burdens. Furthermore, any determination by us to cease or to limit investing in interests that may be treated as “commodity interests” in order to comply with the regulations of the CFTC may have a material adverse effect on our ability to implement our investment objectives and to hedge risks associated with our operations.

Our use of short sales for investment and/or risk management purposes subjects us to risks associated with selling short. We may engage in short sales where we do not own or have the right to acquire the security sold short at no additional cost. Our loss on a short sale theoretically could be unlimited in a case where we are unable, for whatever reason, to close out a short position.

Our short selling strategies may limit our ability to benefit from increases in the markets. Short selling also involves a form of financial leverage that may exaggerate any losses. Also, there is the risk that the counterparty to a short sale may fail to honor its contractual terms, causing a loss to us. Finally, SEC, FINRA or other regulations relating to short selling may restrict our ability to engage in short selling.

Although not anticipated to be a large component of our investment strategy, we have the ability to invest in securities that are traded (publicly or through other active markets (including through private transactions)) and are, therefore, subject to the risks inherent in investing in traded securities. When investing in traded securities, we may be unable to obtain financial covenants or other contractual governance rights, including management rights that it might otherwise be able to obtain in making privately negotiated investments. Moreover, we may not have the same access to information in connection with investments in traded securities, either when investigating a potential investment or after making the investment, as compared to privately negotiated investments. Furthermore, we may be limited in our ability to make investments, and to sell existing investments, in traded securities because Blackstone may be deemed to have material, non-public information regarding the issuers of those securities or as a result of other internal policies or requirements. The inability to sell traded securities in these circumstances could materially adversely affect the investment results. In addition, securities acquired of a public company may, depending on the circumstances and securities laws of the relevant jurisdiction, be subject to lock-up periods.

We may incur contingent liabilities in connection with the disposition of investments.

In connection with the disposition of an investment, we may be required to make certain representations about the business, financial affairs and other aspects (such as environmental, property, tax, insurance, and litigation) of such investment typical of those made in connection with the sale of a business or other investment comparable to the investment being sold. We may also be required to indemnify the purchasers of such investment to the extent that any such representations are inaccurate or with respect to certain potential liabilities. These arrangements may result in the incurrence of contingent liabilities for which the Adviser may establish reserves or escrow accounts.

The current regulatory environment in the United States may be impacted by future legislative developments, such as amendments to key provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). The current U.S. President has a legislative agenda that includes certain deregulatory measures for the U.S. financial services industry, including changes to the Volcker Rule, capital and risk retention requirements, the Financial Stability Oversight Council’s authority and other aspects of the Dodd-Frank Act. The U.S. Department of the Treasury has issued a series of recommendations in several reports for streamlining banking regulation and changing key features of the Dodd-Frank Act and other measures taken by regulators following the most recent financial crisis.

The outcome of the upcoming congressional and other elections creates uncertainty with respect to legal, tax and regulatory regimes in which we and our investments, as well as the Adviser and its affiliates, will operate. Any significant changes in, among other things, economic policy (including with respect to interest rates and foreign trade), the regulation of the investment management industry, tax law, immigration policy and/or government entitlement programs could have a material adverse impact on us and our investments.

We may utilize non-recourse securitizations of certain of our CMBS investments, which may expose us to risks that could result in losses.

We may seek to utilize non-recourse securitizations of certain of our CMBS investments to the extent consistent with REIT and 1940 Act requirements. This would likely involve us creating a special-purpose vehicle, contributing a pool of our assets to the entity, and selling interests in the entity on a non-recourse basis to purchasers (whom we would expect to be willing to accept a lower interest rate to invest in investment-grade loan pools). We would expect to retain all or a portion of the equity in the securitized pool of loans or investments. Prior to any such financing, we may use short-term facilities to finance the acquisition of securities until a sufficient quantity of securities had been accumulated, at which time we would refinance these facilities through a securitization, such as a CMBS, or issuance of CLOs, or the private placement of loan participations or other long-term financing. If we were to employ this strategy, we would be subject to the risk that we would not be able to acquire, during the period that our short-term facilities are available, a sufficient amount of eligible securities to maximize the efficiency of a CMBS, CLO or private placement issuance. We also would be subject to the risk that we would not be able to obtain short-term credit facilities or would not be able to renew any short-term credit facilities after they expire should we find it necessary to extend our short-term credit facilities to allow more time to seek and acquire the necessary eligible securities for a long-term financing. The inability to consummate securitizations of our portfolio to finance our loans and investments on a long-term basis could require us to seek other forms of potentially less attractive financing or to liquidate assets at an inopportune time or price, which could adversely affect our performance and our ability to grow our business. Moreover, conditions in the capital markets, including volatility and disruption in the capital and credit markets, may not permit a non-recourse securitization at any particular time or may make the issuance of any such securitization less attractive to us even when we do have sufficient eligible assets. We may also suffer losses if the value of the mortgage loans we acquire declines prior to securitization. Declines in the value of a mortgage loan can be due to, among other things, changes in interest rates and changes in the credit quality of the loan. In addition, transaction costs incurred in executing transactions impact any liability that we may incur, or may be required to reserve for, in connection with executing a transaction can cause a loss to us. To the extent that we incur a loss executing or participating in future securitizations for the reasons described above or for other reasons, it could materially and adversely impact our business and financial condition.

In addition, the securitization of investments in our portfolio might magnify our exposure to losses because any equity interest we retain in the issuing entity would be subordinate to the notes issued to investors and we would, therefore, absorb all of the losses sustained with respect to a securitized pool of assets before the owners of the notes experience any losses. The inability to securitize our portfolio may hurt our performance and our ability to grow our business. At the same time, the securitization of our loans or investments might expose us to losses, as the residual loans or investments in which we do not sell interests will tend to be riskier and more likely to generate losses. Moreover, the Dodd Frank Act contains a risk retention requirement for all asset-backed securities, which requires both public and private securitizers to retain not less than 5% of the credit risk of the assets collateralizing any asset-backed security issuance. Significant restrictions exist, and additional restrictions may be added in the future, regarding who may hold risk retention interests, the structure of the entities that hold risk retention interests and when and how such risk retention interests may be transferred. Therefore such risk retention interests will generally be illiquid. As a result of the risk retention requirements, we may be required to purchase and retain certain interests in a securitization into which we sell mortgage loans and/or when we act as issuer,

may be required to sell certain interests in a securitization at prices below levels that such interests have historically yielded and/or may be required to enter into certain arrangements related to risk retention that we have not historically been required to enter into and, accordingly, the risk retention rules may increase our potential liabilities and/or reduce our potential profits in connection with securitization of mortgage loans. It is likely, therefore, that these risk retention rules will increase the administrative and operational costs of asset securitizations.

We may find it necessary or desirable to foreclose on certain of the loans or CMBS we acquire, and the foreclosure process may be lengthy and expensive.

We may find it necessary or desirable to foreclose on certain of the loans or CMBS we acquire, and the foreclosure process may be lengthy and expensive. The protection of the terms of the applicable loan, including the validity or enforceability of the loan and the maintenance of the anticipated priority and perfection of the applicable security interests may not be adequate. Furthermore, claims may be asserted by lenders or borrowers that might interfere with enforcement of our rights. Borrowers may resist foreclosure actions by asserting numerous claims, counterclaims and defenses against us, including, without limitation, lender liability claims and defenses, even when the assertions may have no basis in fact, in an effort to prolong the foreclosure action and seek to force the lender into a modification of the loan or a favorable buy-out of the borrower’s position in the loan. In some states, foreclosure actions can take several years or more to litigate. At any time prior to or during the foreclosure proceedings, the borrower may file for bankruptcy or its equivalent, which would have the effect of staying the foreclosure actions and further delaying the foreclosure process and potentially result in a reduction or discharge of a borrower’s debt. Foreclosure may create a negative public perception of the related property, resulting in a diminution of its value, and in the event of any such foreclosure or other similar real estate owned-proceeding, we would also become the subject to the various risks associated with direct ownership of real estate, including environmental liabilities. Even if we are successful in foreclosing on a loan, the liquidation proceeds upon sale of the underlying real estate may not be sufficient to recover our cost basis in the loan, resulting in a loss to us. Furthermore, any costs or delays involved in the foreclosure of the loan or a liquidation of the underlying property will further reduce the net proceeds and, thus, increase the loss.

Any adverse changes in the global credit markets could make it more difficult for us to obtain favorable financing. Our ability to generate attractive investment returns for its shareholders will be adversely affected to the extent we are unable to obtain favorable financing terms. If we are unable to obtain favorable financing terms, it may not be able to adequately leverage our portfolio, may face increased financing expenses or may face increased restrictions on its investment activities, any of which would negatively impact our performance.

We will incur mortgage indebtedness and other borrowings, which may increase our business risks, could hinder our ability to make distributions and could decrease the value of your investment.

The acquisition of investment properties may be financed in substantial part by borrowing, which increases our exposure to loss. Under our charter, we have a limitation that precludes us from borrowing in excess of 300% of our net assets, which approximates borrowing 75% of the cost of our investments (unless a majority of our independent directors approves any borrowing in excess of the limit and we disclose the justification for doing so to our stockholders), but such restriction does not restrict the amount of indebtedness we may incur with respect to any single investment. Our target leverage ratio is in the range of 60%. Our leverage ratio is measured by dividing (i) property-level and entity-level debt net of cash and loan-related restricted cash, by (ii) gross real estate assets (measured using the greater of fair market value and cost) plus the equity in our settled securities portfolio. See “Investment Objectives and Strategies—Borrowing Policies” in the Prospectus. We may exceed our target leverage ratio, particularly during a market downturn or in connection with a large acquisition. The use of leverage involves a high degree of financial risk and will increase the exposure of the investments to adverse economic factors such as rising interest rates, downturns in the economy or deteriorations in the condition of the investments. Principal and interest payments on indebtedness (including mortgages having “balloon” payments) will have to be made regardless of the sufficiency of cash flow from the properties. Our investments will be impaired by a smaller decline in the value of the properties than is the case where properties are owned with a proportionately smaller amount of debt.

We may incur or increase our mortgage debt by obtaining loans secured by a portfolio of some or all of the real estate acquired and may borrow under mortgages on properties after they are acquired. Depending on the level of leverage and decline in value, if mortgage payments are not made when due, one or more of the properties may be lost (and our investment therein rendered valueless) as a result of foreclosure by the mortgagee(s). A foreclosure may also have substantial adverse tax consequences for us.

Many of these same issues also apply to credit facilities which are expected to be in place at various times as well. For example, the loan documents for such facilities may include various coverage ratios, the continued compliance with which may not be completely within our control. If such coverage ratios are not met, the lenders under such credit facilities may declare any unfunded commitments to be terminated and declare any amounts outstanding to be due and payable. We may also rely on short-term financing that would be especially exposed to changes in availability.

Although borrowings by us have the potential to enhance overall returns that exceed our cost of funds, they will further diminish returns (or increase losses on capital) to the extent overall returns are less than our cost of funds. As a result, the possibilities of profit and loss are increased. Borrowing money to purchase properties provides us with the advantages of leverage, but exposes us to greater market risks and higher current expenses.

Generally, commercial real estate financings are structured as non-recourse to the borrower, which limits a lender’s recourse to the property pledged as collateral for the loan, and not the other assets of the borrower or to any parent of borrower, in the event of a loan default. However, lenders customarily will require that a creditworthy parent entity enter into so-called “recourse carveout” guarantees to protect the lender against certain bad-faith or other intentional acts of the borrower in violation of the loan documents. A “bad boy” guarantee typically provides that the lender can recover losses from the guarantors for certain bad acts, such as fraud or intentional misrepresentation, intentional waste, willful misconduct, criminal acts, misappropriation of funds, voluntary incurrence of prohibited debt and environmental losses sustained by lender. In addition, “bad boy” guarantees typically provide that the loan will be a full personal recourse obligation of the guarantor, for certain actions, such as prohibited transfers of the collateral or changes of control and voluntary bankruptcy of the borrower. These financing arrangements with respect to our investments generally require “bad boy” guarantees from us and/or the Operating Partnership and in the event that such a guarantee is called, our assets could be adversely affected. Moreover, our “bad boy” guarantees could apply to actions of the joint venture partners associated with our investments. While the Adviser expects to negotiate indemnities from such joint venture partners to protect against such risks, there remains the possibility that the acts of such joint venture partner could result in liability to us under such guarantees. We may provide “bad boy” guarantees on behalf of Other Blackstone Accounts investing alongside us and as such guarantees are not for borrowed money, they will typically not be included under our leverage limitations.

If we draw on a line of credit to fund repurchases or for any other reason, our financial leverage ratio could increase beyond our target.

We have lines of credits with financial institutions that are either unsecured or secured by certain of our assets as well as an uncommitted line of credit from an affiliate of Blackstone and we may seek to obtain additional lines of credit in an effort to provide for a ready source of liquidity for any business purpose, including to fund repurchases of shares of our common stock in the event that repurchase requests exceed our operating cash flow and/or net proceeds from our continuous offering. There can be no assurances that we will be able to borrow under or maintain our existing lines of credit or obtain additional lines of credit on financially reasonable terms. In addition, we may not be able to obtain lines of credit of an appropriate size for our business. If we borrow under a line of credit to fund repurchases of shares of our common stock, our financial leverage will increase and may exceed our target leverage ratio. Our leverage may remain at the higher level until we receive additional net proceeds from our continuous offering or generate sufficient operating cash flow or proceeds from asset sales to repay outstanding indebtedness. In connection with a line of credit, distributions may be subordinated to payments required in connection with any indebtedness contemplated thereby. We may utilize a line of credit for the benefit of Other Blackstone Accounts which may invest alongside us in one or more investments. In such circumstances, we generally intend to disclose such arrangements as part of our reporting and enter into arrangements to cause any Other Blackstone Accounts to bear (or reimburse us for) their pro rata share of any costs and expenses (including interest payments) allocable to such extensions of credit.

Increases in interest rates could increase the amount of our loan payments and adversely affect our ability to make distributions to our stockholders.

Interest we pay on our loan obligations will reduce cash available for distributions. We have and will likely in the future obtain variable rate loans, and as a result, increases in interest rates could increase our interest costs, which could reduce our cash flows and our ability to make distributions to you. In addition, if we need to repay existing loans during periods of rising interest rates, we could be required to liquidate one or more of our investments at times that may not permit realization of the maximum return on such investments. While we cannot predict factors which may or may not affect interest rates, during the year ended December 31, 2019, a 10% increase or decrease in the one-month U.S. denominated LIBOR rate would have resulted in an increase or decrease to our interest expense of $11.0 million.

Volatility in the financial markets and challenging economic conditions could adversely affect our ability to secure debt financing on attractive terms and our ability to service or refinance any future indebtedness that we may incur.

The volatility of the global credit markets could make it more difficult to obtain favorable financing for investments. During periods of volatility, which often occur during economic downturns, generally credit spreads widen, interest rates rise, and investor demand for high yield debt declines. These trends result in reduced willingness by investment banks and other lenders to finance new investments and deterioration of available terms. If the overall cost of borrowing increases, either by increases in the index rates or by increases in lender spreads, the increased costs may result in future acquisitions generating lower overall economic returns and potentially reducing future cash flow available for distribution. Disruptions in the debt markets negatively impact our ability to borrow monies to finance the purchase of, or other activities related to, real estate assets. If we are unable to borrow monies on terms and conditions that we find acceptable, we likely will have to reduce the number of properties we can purchase, and the return on the properties we do purchase may be lower. In addition, we may find it difficult, costly or impossible to refinance indebtedness that is maturing. Moreover, to the extent that such marketplace events are not temporary, they could have an adverse impact on the availability of credit to businesses generally and could lead to an overall weakening of the U.S. economy.

Lenders may require us to enter into restrictive covenants relating to our operations, which could limit our ability to make distributions to our stockholders.

When providing financing, a lender may impose restrictions on us that affect our distribution and operating policies and our ability to obtain additional loans. Loan documents we enter into may contain covenants that limit our ability to further mortgage or dispose of the property or discontinue insurance coverage. In addition, loan documents may limit our ability to enter into or terminate certain operating or lease agreements related to the property. Loan documents may also require lender approval of certain actions and as a result of the lender’s failure to grant such approval, we may not be able to take a course of action we deem most profitable. These or other limitations may adversely affect our flexibility and our ability to make distributions to you and the value of your investment.

If we enter into financing arrangements involving balloon payment obligations, it may adversely affect our ability to make distributions to our stockholders.

Some of our financing arrangements may require us to make a lump-sum or “balloon” payment at maturity. Our ability to make a balloon payment is uncertain and may depend upon our ability to obtain replacement financing or our ability to sell particular properties. At the time the balloon payment is due, we may or may not be able to refinance the balloon payment on terms as favorable as the original loan or sell the particular property at a price sufficient to make the balloon payment. Such a refinancing would be dependent upon interest rates and lenders’ policies at the time of refinancing, economic conditions in general and the value of the underlying properties in particular. The effect of a refinancing or sale could affect the rate of return to stockholders and the projected time of disposition of our assets.

We use reverse repurchase agreements to finance our securities investments, which may expose us to risks that could result in losses.

We use reverse repurchase agreements as a form of leverage to finance our securities investments, and the proceeds from reverse repurchase agreements are generally invested in additional securities. There is a risk that the market value of the securities acquired from the proceeds received in connection with a reverse repurchase agreement may decline below the price of the securities underlying the reverse repurchase agreement that we have sold but remain obligated to repurchase. Reverse repurchase agreements also involve the risk that the counterparty liquidates the securities we delivered to it under the reverse repurchase agreements following the occurrence of an event of default under the applicable repurchase agreement by us. In addition, there is a risk that the market value of the securities we retain may decline. If the buyer of securities under a reverse repurchase agreement were to file for bankruptcy or experiences insolvency, we may be adversely affected. Furthermore, our counterparty may require us to provide additional margin in the form of cash, securities or other forms of collateral under the terms of the derivative contract. Also, in entering into reverse repurchase agreements, we bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement are less than the value of the underlying securities. In addition, the interest costs associated with reverse repurchase agreements transactions may adversely affect our results of operations and financial condition, and, in some cases, we may be worse off than if we had not used such instruments.

Failure to hedge effectively against interest rate changes may materially adversely affect our results of operations and financial condition.

Subject to any limitations required to maintain qualification as a REIT, we may seek to manage our exposure to interest rate volatility by using interest rate hedging arrangements, such as interest rate cap or collar agreements and interest rate swap agreements. These

agreements involve risks, such as the risk that counterparties may fail to honor their obligations under these arrangements and that these arrangements may not be effective in reducing our exposure to interest rate changes. These interest rate hedging arrangements may create additional assets or liabilities from time to time that may be held or liquidated separately from the underlying property or loan for which they were originally established. Hedging may reduce the overall returns on our investments. Failure to hedge effectively against interest rate changes may materially adversely affect our results of operations and financial condition.

Changes to, or the elimination of, LIBOR may adversely affect interest expense related to borrowings under our credit facilities and real estate-related investments.

We pay interest under our credit facilities, and receive interest payments on certain of our real estate debt investments, based on LIBOR, which is the subject of recent national, international and regulatory guidance and proposals for reform.

In a speech on July 27, 2017, Andrew Bailey, the Chief Executive of the Financial Conduct Authority of the U.K., or the FCA, announced the FCA’s intention to cease sustaining LIBOR after 2021. The FCA has statutory powers to require panel banks to contribute to LIBOR where necessary. The FCA has decided not to ask, or to require, that panel banks continue to submit contributions to LIBOR beyond the end of 2021. The FCA has indicated that it expects that the current panel banks will voluntarily sustain LIBOR until the end of 2021. It is possible that the ICE Benchmark Administration Limited (formerly NYSE Euronext Rate Administration Limited) (the “IBA”) and the panel banks could continue to produce LIBOR on the current basis after 2021, if they are willing and able to do so, but we do not currently anticipate that LIBOR will survive in its current form, or at all. Other jurisdictions have also indicated they will implement reforms or phase-outs, which are currently scheduled to take effect at the end of calendar year 2021. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, has identified the Secured Overnight Financing Rate (“SOFR”), a new index calculated by short-term repurchase agreements, backed by Treasury securities, as its preferred alternative rate for LIBOR. At this time, it is not possible to predict how markets will respond to SOFR or other alternative reference rates as the transition away from LIBOR is anticipated in coming years.

Our debt includes floating-rate loans and reverse repurchase agreements for which the interest rates are tied to LIBOR and real estate debt investments with interest payments based on LIBOR. There is currently no definitive information regarding the future utilization of LIBOR or of any particular replacement rate. In addition, any benchmark may perform differently during any phase-out period than in the past. As such, the potential effect of any such event on our cost of capital and net investment income cannot yet be determined, and any changes to benchmark interest rates could increase our financing costs or decrease the income we earn on our real estate debt investments, which could impact our results of operations, cash flows and the market value of our investments. In addition, we may need to renegotiate certain of our loan agreements that extend past 2021, which could require us to incur significant expense and may subject us to disputes or litigation over the appropriateness or comparability to the relevant benchmark of the replacement reference rates. Moreover, the elimination of LIBOR and/or changes to another index could result in mismatches with the interest rate of investments that we are financing. In addition, the overall financial markets may be disrupted as a result of the phase-out or replacement of LIBOR. We are assessing the impact of a potential transition from LIBOR; however, we cannot reasonably estimate the impact of the transition at this time.

We depend on the Adviser to select our investments and otherwise conduct our business, and any material adverse change in its financial condition or our relationship with the Adviser could have a material adverse effect on our business and ability to achieve our investment objectives.

Our success is dependent upon our relationship with, and the performance of, the Adviser in the acquisition and management of our real estate portfolio, and our corporate operations. The Adviser may suffer or become distracted by adverse financial or operational problems in connection with Blackstone’s business and activities unrelated to us and over which we have no control. Should the Adviser fail to allocate sufficient resources to perform its responsibilities to us for any reason, we may be unable to achieve our investment objectives or to pay distributions to our stockholders.

The termination or replacement of the Adviser could trigger a repayment event under our mortgage loans for some of our properties, the credit agreement governing any of our lines of credit and our repurchase agreements.

Lenders for certain of our properties may request provisions in the mortgage loan documentation that would make the termination or replacement of the Adviser an event requiring the immediate repayment of the full outstanding balance of the loan. The termination or replacement of the Adviser could trigger repayment of outstanding amounts under the credit agreements governing our lines of credit

that we may obtain or under the repurchase agreements that we may enter into. If a repayment event occurs with respect to any of our properties, our results of operations and financial condition may be adversely affected.

The Adviser’s inability to retain the services of key real estate professionals could hurt our performance.

The Adviser’s power to approve the acquisition of a particular investment, finance or refinance any new or existing investment or dispose of an existing investment rests with the Investment Committee, sub-committees of the Investment Committee or particular professionals employed by the Adviser, depending on the size and type of the investment. Accordingly, our success depends to a significant degree upon the contributions of certain key real estate professionals employed by the Adviser, each of whom would be difficult to replace. There is ever increasing competition among alternative asset firms, financial institutions, private equity firms, investment advisors, investment managers, real estate investment companies, real estate investment trusts and other industry participants for hiring and retaining qualified investment professionals and there can be no assurance that such professionals will continue to be associated with the us or the Adviser, particularly in light of our perpetual-life nature, or that replacements will perform well. Neither we nor the Adviser have employment agreements with these individuals and they may not remain associated with us. If any of these persons were to cease their association with us, our operating results could suffer. Our future success depends, in large part, upon the Adviser’s ability to attract and retain highly skilled managerial, operational and marketing professionals. If the Adviser loses or is unable to obtain the services of highly skilled professionals, our ability to implement our investment strategies could be delayed or hindered.

Any material adverse change to the Dealer Manager’s ability to successfully build and maintain a network of licensed broker-dealers could have a material adverse effect on our business and the Offering.

The dealer manager for the Offering is Blackstone Advisory Partners L.P. Any material adverse change to the ability of our Dealer Manager to build and maintain a network of licensed securities broker-dealers and other agents could have a material adverse effect on our business and the Offering. If the Dealer Manager is unable to build and maintain a sufficient network of participating broker-dealers to distribute shares in the Offering, our ability to raise proceeds through the Offering and implement our investment strategy may be adversely affected. In addition, the Dealer Manager currently serves and may serve as dealer manager for other issuers. As a result, the Dealer Manager may experience conflicts of interest in allocating its time between the Offering and such other issuers, which could adversely affect our ability to raise proceeds through the Offering and implement our investment strategy. Further, the participating broker-dealers retained by the Dealer Manager may have numerous competing investment products, some with similar or identical investment strategies and areas of focus as us, which they may elect to emphasize to their retail clients.

You will not have the benefit of an independent due diligence review in connection with the Offering and, if a conflict of interest arises between us and Blackstone, we may incur additional fees and expenses.

Because the Adviser and the Dealer Manager are affiliates of Blackstone Real Estate, our sponsor, you will not have the benefit of an independent due diligence review and investigation of the type normally performed by an unaffiliated, independent underwriter and its counsel in connection with a securities offering. If any situation arises in which our interests are in conflict with those of the Adviser, the Dealer Manager or its affiliates, and we are required to retain independent counsel, we will incur additional fees and expenses.

The fees we pay in connection with the Offering and the agreements entered into with Blackstone and its affiliates were not determined on an arm’s-length basis and therefore may not be on the same terms we could achieve from a third party.

The compensation paid to the Adviser, Dealer Manager and other Blackstone affiliates for services they provide us was not determined on an arm’s-length basis. All service agreements, contracts or arrangements between or among Blackstone and its affiliates, including the Adviser and us, were not negotiated at arm’s-length. Such agreements include our Advisory Agreement, the Operating Partnership’s partnership agreement, our dealer manager agreement (the “Dealer Manager Agreement”), and any property related corporate services and other agreements we may enter into with affiliates of the Adviser from time to time.

We do not own the Blackstone name, but we may use it as part of our corporate name pursuant to a trademark license agreement with an affiliate of Blackstone. Use of the name by other parties or the termination of our trademark license agreement may harm our business.

We have entered into a trademark license agreement (“Trademark License Agreement”), with Blackstone TM L.L.C. (the “Licensor”), an affiliate of Blackstone, pursuant to which it has granted us a fully paid-up, royalty-free, non-exclusive, non-transferable license to use the name “Blackstone Real Estate Income Trust, Inc.”. Under this agreement, we have a right to use this name for so long as the Adviser (or another affiliate of the Licensor) serves as our advisor (or another advisory entity) and the Adviser remains an affiliate of the Licensor under the Trademark License Agreement. The Trademark License Agreement may also be earlier terminated by either

party as a result of certain breaches or for convenience upon 90 days’ prior written notice, provided that upon notification of such termination by us, the Licensor may elect to effect termination of the Trademark License Agreement immediately at any time after 30 days from the date of such notification. The Licensor and its affiliates, such as Blackstone, will retain the right to continue using the “Blackstone” name. We will further be unable to preclude the Licensor from licensing or transferring the ownership of the “Blackstone” name to third parties, some of whom may compete with us. Consequently, we will be unable to prevent any damage to goodwill that may occur as a result of the activities of the Licensor, Blackstone or others. Furthermore, in the event that the Trademark License Agreement is terminated, we will be required to, among other things, change our name. Any of these events could disrupt our recognition in the market place, damage any goodwill we may have generated and otherwise harm our business.

Various potential and actual conflicts of interest will arise, and these conflicts may not be identified or resolved in a manner favorable to us.

Blackstone has conflicts of interest, or conflicting loyalties, as a result of the numerous activities and relationships of Blackstone, the Dealer Manager, the Adviser and the affiliates, partners, members, shareholders, officers, directors and employees of the foregoing, some of which are described herein. However, not all potential, apparent and actual conflicts of interest are included herein, and additional conflicts of interest could arise as a result of new activities, transactions or relationships commenced in the future. If any matter arises that we and our affiliates (including the Adviser) determine in our good faith judgment constitutes an actual and material conflict of interest, we and our affiliates (including the Adviser) will take such actions as we determine appropriate to mitigate the conflict. Transactions between us and Blackstone or its affiliates will require approval by our board of directors, including a majority of our independent directors. There can be no assurance that our board of directors or Blackstone will identify or resolve all conflicts of interest in a manner that is favorable to us.

The Adviser faces a conflict of interest because the fees it receives for services performed are based in part on our NAV, which the Adviser is ultimately responsible for determining.

The Adviser is paid a management fee for its services based on our NAV, which is calculated by State Street, based on valuations provided by the Adviser. In addition, the distributions to be received by the Special Limited Partner with respect to its performance participation interest in the Operating Partnership are based in part upon the Operating Partnership’s net assets (which is a component of our NAV). The calculation of our NAV includes certain subjective judgments with respect to estimating, for example, the value of our portfolio and our accrued expenses, net portfolio income and liabilities, and therefore, our NAV may not correspond to realizable value upon a sale of those assets. The Adviser may benefit by us retaining ownership of our assets at times when our stockholders may be better served by the sale or disposition of our assets in order to avoid a reduction in our NAV. If our NAV is calculated in a way that is not reflective of our actual NAV, then the purchase price of shares of our common stock or the price paid for the repurchase of your shares of common stock on a given date may not accurately reflect the value of our portfolio, and your shares may be worth less than the purchase price or more than the repurchase price. The valuation of our investments will affect the amount and timing of the management fee paid to the Adviser and the Special Limited Partner’s performance participation interest. As a result, there may be circumstances where the Adviser is incentivized to determine valuations that are higher than the actual fair value of our investments.

The Adviser’s management fee and the Special Limited Partner’s performance participation interest may not create proper incentives or may induce the Adviser and its affiliates to make certain investments, including speculative investments, that increase the risk of our real estate portfolio.

We pay the Adviser a management fee regardless of the performance of our portfolio. The Adviser’s entitlement to a management fee, which is not based upon performance metrics or goals, might reduce its incentive to devote its time and effort to seeking investments that provide attractive risk-adjusted returns for our portfolio. We would be required to pay the Adviser a management fee in a particular period even if we experienced a net loss or a decline in the value of our portfolio during that period.

The existence of the Special Limited Partner’s 12.5% performance participation interest in our Operating Partnership, which is based on our total distributions plus the change in NAV per share, may create an incentive for the Adviser to make riskier or more speculative investments on our behalf or cause us to use more leverage than it would otherwise make in the absence of such performance-based compensation. In addition, the change in NAV per share will be based on the value of our investments on the applicable measurement dates and not on realized gains or losses. As a result, the performance participation interest may receive distributions based on unrealized gains in certain assets at the time of such distributions and such gains may not be realized when those assets are eventually disposed of.

Because the management fee and performance participation are based on our NAV, the Adviser may also be motivated to accelerate acquisitions in order to increase NAV or, similarly, delay or curtail repurchases to maintain a higher NAV, and the Dealer Manager may also be incentivized to sell more shares of our common stock to increase aggregate NAV, which would, in each case, increase amounts payable to the Adviser and the Special Limited Partner, but may make it more difficult for us to efficiently deploy new capital.

Blackstone personnel work on other projects and conflicts may arise in the allocation of personnel between us and other projects.

The Adviser and its affiliates will devote such time as they determine to be necessary to conduct our business affairs in an appropriate manner. However, Blackstone personnel, including members of the Investment Committee, will work on other projects, serve on other committees and source potential investments for and otherwise assist the investment programs of Other Blackstone Accounts and their portfolio entities, including other investment programs to be developed in the future. Time spent on these other initiatives diverts attention from our activities, which could negatively impact us. Furthermore, Blackstone and Blackstone personnel derive financial benefit from these other activities, including fees and performance-based compensation. Our sponsor’s personnel share in the fees and performance-based compensation generated by Other Blackstone Accounts. These and other factors create conflicts of interest in the allocation of time by such personnel.

Blackstone is subject to a number of conflicts of interest, regulatory oversight and legal and contractual restrictions due to its multiple business lines, which may reduce the synergies that we expect to draw on or otherwise reduce the opportunities available to us.

Blackstone has multiple business lines, including the Blackstone Capital Markets Group, which Blackstone, Other Blackstone Accounts and their portfolio entities and third parties, will in certain circumstances, engage for debt and equity financings and to provide other investment banking, brokerage, investment advisory or other services. As a result of these activities, Blackstone is subject to a number of actual and potential conflicts of interest, greater regulatory oversight and more legal and contractual restrictions than if it had one line of business. For example, Blackstone may come into possession of information that limits our ability to engage in potential transactions. Similarly, other Blackstone businesses and their personnel may be prohibited by law or contract from sharing information with the Adviser or its affiliates that would be relevant to monitoring our investments and other activities. Additionally, Blackstone or Other Blackstone Accounts can be expected to enter into covenants that restrict or otherwise limit our ability to make investments in, or otherwise engage in, certain businesses or activities. For example, Other Blackstone Accounts could have granted exclusivity to a joint venture partner that limits us and Other Blackstone Accounts from owning assets within a certain distance of any of the joint venture’s assets, or Blackstone or an Other Blackstone Account could have entered into a non-compete in connection with a sale or other transaction. These types of restrictions may negatively impact our ability to implement our investment program. Finally, certain personnel who are members of the investment team or investment committee may be excluded from participating in certain investment decisions due to conflicts involving other businesses or for other reasons, in which case we will not benefit from their experience. Our stockholders will not receive a benefit from any fees earned by Blackstone or its personnel from these other businesses.

Blackstone has implemented policies and procedures to address conflicts that arise as a result of its various activities, as well as regulatory and other legal considerations. Some of these policies and procedures, such as Blackstone’s information wall policy, also have the effect of reducing firm-wide synergies and collaboration that the Adviser could otherwise expect to utilize for purposes of identifying and managing attractive investments. Blackstone personnel may be unable, for example, to assist with our activities of as a result of these walls. There can be no assurance that additional restrictions won’t be imposed that would further limit the ability of Blackstone to share information internally.

Blackstone is under no obligation to decline any engagements or investments in order to make an investment opportunity available to us. Blackstone has long-term relationships with a significant number of corporations and their senior management. The Adviser and its affiliates will consider those relationships when evaluating an investment opportunity, which may result in the Adviser or its affiliates choosing not to make such an investment due to such relationships (e.g., investments in a competitor of a client or any other person with whom Blackstone has a relationship). We may be forced to sell or hold existing investments as a result of investment banking relationships or other relationships that Blackstone and its affiliates may have or transactions or investments Blackstone and its affiliates may make or have made. Therefore, there can be no assurance that all potentially suitable investment opportunities that come to the attention of Blackstone will be made available to us. See “—Certain Other Blackstone Accounts have similar or overlapping investment objectives and guidelines, and we will not be allocated certain opportunities and may be allocated only opportunities with lower relative returns” below. We may also co-invest with clients of Blackstone or other persons with whom Blackstone has a relationship in particular investment opportunities, and other aspects of these Blackstone relationships could influence the decisions made by the Adviser and its affiliates with respect to our investments and otherwise result in a conflict.

Blackstone, its affiliates and their related parties and personnel participate in underwriting and lending syndicates and otherwise act as arrangers of financing, including with respect to the public offering and private placement of debt or equity securities issued by, and loan proceeds borrowed by us or our subsidiaries. Underwritings and financings can be on a firm commitment basis or on an uncommitted, or “best efforts”, basis, and the underwriting or financing parties are under no duty to provide any commitment unless specifically set forth in the relevant contract. Blackstone can be expected to also provide placement or other similar services to purchasers or sellers of securities, including loans or instruments issued by its portfolio entities. A Blackstone broker-dealer will from time to time act as the managing underwriter, a member of the underwriting syndicate or broker for us or our subsidiaries, or as dealer, broker or advisor to a counterparty to us or our subsidiaries, and purchase securities from or sell securities to us, our subsidiaries, Other Blackstone Accounts or their portfolio entities. Blackstone will also from time to time, on our behalf or on behalf of other parties to a transaction involving us, effect transactions, including transactions in the secondary markets, subject to applicable law that result in commissions or other compensation paid to Blackstone by us or the counterparty to the transaction, thereby creating a potential conflict of interest. Subject to applicable law, Blackstone will from time to time receive underwriting fees, discounts, placement commissions, loan modification or restructuring fees, servicing fees, capital markets, advisory fees, lending arrangement fees, asset/property management fees, insurance (including title insurance fees), incentive fees, consulting fees, monitoring fees, commitment fees, syndication fees, origination fees, organizational fees, operational fees, loan servicing fees, and financing and divestment fees (or, in each case, rebates in lieu of any such fees, whether in the form of purchase price discounts or otherwise, even in cases where Blackstone, an Other Blackstone Account or their portfolio entities are purchasing debt) or other compensation with respect to the foregoing activities, which are not required to be shared with us or our stockholders. Our independent directors will approve any transactions in which a Blackstone broker-dealer acts as underwriter, as broker for us, or as dealer, broker or advisor, on the other side of a transaction with us only where such directors believe in good faith that such transactions are appropriate for us, and our stockholders, by executing a subscription agreement for our shares, consent to all such transactions, along with other transactions involving conflicts described herein, to the fullest extent permitted by law. Sales of securities for our account will from time to time be bunched or aggregated with orders for other accounts of Blackstone including Other Blackstone Accounts. It could be impossible, as determined by the Adviser and its affiliates in their sole discretion, to receive the same price or execution on the entire volume of securities sold, and the various prices will, in certain circumstances, therefore be averaged which may be disadvantageous to us. When Blackstone serves as underwriter with respect to securities held by us or any of our subsidiaries, we could be subject to a “lock-up” period following the offering under applicable regulations during which time we would be unable to sell any securities subject to the “lock-up”. This may prejudice our ability to dispose of such securities at an opportune time. Blackstone employees are generally permitted to invest in alternative investment funds, real estate funds, hedge funds or other investment vehicles, including our potential competitors. Our stockholders will not receive any benefit from any such investments.

On October 1, 2015, Blackstone spun off its financial and strategic advisory services, restructuring and reorganization advisory services, and its Park Hill fund placement businesses and combined these businesses with PJT Partners Inc. (“PJT”), an independent financial advisory firm founded by Paul J. Taubman. While the combined business operates independently from Blackstone and is not an affiliate thereof, it is expected that there will be substantial overlapping ownership between Blackstone and PJT for a considerable period of time going forward. Therefore, conflicts of interest will arise in connection with transactions between or involving us, on the one hand, and PJT, on the other. The pre-existing relationship between Blackstone and its former personnel involved in financial and strategic advisory services at PJT, the overlapping ownership and co-investment and other continuing arrangements between PJT and Blackstone can be expected to influence the Adviser to select or recommend PJT to perform services for us (the cost of which will generally be borne directly or indirectly by us). Given that PJT is no longer an affiliate of Blackstone, the Adviser and its affiliates will be free to cause us to transact with PJT generally without restriction under our charter notwithstanding the relationship between Blackstone and PJT. See also “—The Adviser may face conflicts of interests in choosing our service providers and certain service providers may provide services to the Dealer Manager, the Adviser or Blackstone on more favorable terms than those payable by us” below.

Blackstone receives or obtains various kinds of data and information from us, Other Blackstone Accounts and portfolio entities, including data and information relating to business operations, trends, budgets, customers and other metrics, some of which is sometimes referred to as “big data”. Blackstone can be expected to be better able to anticipate macroeconomic and other trends, and otherwise develop investment themes, as a result of its access to this data and information from us, Other Blackstone Account and portfolio entities. Blackstone has entered and will continue to enter into information sharing and use arrangements with us, Other Blackstone Accounts, portfolio entities, related parties and service providers, which may give Blackstone access to (and rights regarding) data that it would not otherwise obtain in the ordinary course. Although Blackstone believes that these activities improve Blackstone’s investment management activities on our behalf and on behalf of Other Blackstone Accounts, information obtained from us and portfolio entities also provides material benefits to Blackstone or Other Blackstone Accounts without compensation or other benefit accruing to us or our stockholders. For example, information from a portfolio entity can be expected to enable Blackstone to better understand a particular industry and execute trading and investment strategies in reliance on that understanding for Blackstone and Other Blackstone Accounts that do not own an interest in the portfolio entity, without compensation or benefit to us or the portfolio entities.

Furthermore, except for contractual obligations to third parties to maintain confidentiality of certain information, and regulatory limitations on the use of material nonpublic information, Blackstone is generally free to use data and information from our activities to assist in the pursuit of Blackstone’s various other activities, including to trade for the benefit of Blackstone or an Other Blackstone Account. For example, Blackstone’s ability to trade in securities of an issuer relating to a specific industry may, subject to applicable law, be enhanced by information of a portfolio entity in the same or related industry. Such trading is expected to provide a material benefit to Blackstone without compensation or other benefit to us or our stockholders.

The sharing and use of “big data” and other information presents potential conflicts of interest and investors acknowledge and agree that any benefits received by Blackstone or its personnel (including fees (in cash or in kind), costs and expenses) will not offset the Adviser’s management fee or otherwise be shared with investors. As a result, the Adviser has an incentive to pursue investments that have data and information that can be utilized in a manner that benefits Blackstone or Other Blackstone Accounts.

Other present and future activities of Blackstone and its affiliates (including the Adviser and the Dealer Manager) will from time to time give rise to additional conflicts of interest relating to us and our investment activities. In the event that any such conflict of interest arises, we will attempt to resolve such conflicts in a fair and equitable manner. Investors should be aware that conflicts will not necessarily be resolved in favor of our interests.

Blackstone engages various advisors and operating partners who may co-invest alongside us, and there can be no assurance that such advisors and operating partners will continue to serve in such roles.

Blackstone, its affiliates and their personnel and related parties engage and retain strategic advisors, consultants, senior advisors, industry experts, joint venture and other partners and professionals, any of whom might be current or former executives or other personnel of the Adviser, its affiliates, portfolio entities or Other Blackstone Accounts (collectively, “Consultants”), to provide a variety of services. Similarly, we, Other Blackstone Accounts and portfolio entities retain and pay compensation to Consultants to provide services, or to undertake a build-up strategy to acquire and develop assets and businesses in a particular sector or involving a particular strategy. Any amounts paid by us or a portfolio entity to Consultants in connection with the above, including performance-based compensation (e.g., promote), retainers and expense reimbursements, will be treated as our expenses or expenses of the portfolio entity, as the case may be, and will not, even if they have the effect of reducing any retainers or minimum amounts otherwise payable by the Adviser, be chargeable to the Adviser or deemed paid to or received by the Adviser, or offset or reduce any management fees to the Adviser. Also, Consultants may co-invest alongside us in investments, participate in long-term incentive plans of a portfolio entity, which generally will result in us being allocated a smaller share of an investment. Consultants’ benefits described in this paragraph may continue after termination of status as a Consultant.

The time, dedication and scope of work of a Consultant varies considerably. In some cases, a Consultant provides the Adviser with industry-specific insights and feedback on investment themes, assists in transaction due diligence, and makes introductions to, and provides reference checks on, management teams. In other cases, Consultants take on more extensive roles, including serving as executives or directors on the boards of portfolio entities and contributing to the identification and origination of new investment opportunities. We may rely on these Consultants to recommend the Adviser and us as a preferred investment partner and carry out our investment program, but there is no assurance that any Consultant will continue to be involved with us for any length of time. We, Blackstone, and/or portfolio companies can be expected to have formal or informal arrangements with Consultants that may or may not have termination options and may include compensation, no compensation, or deferred compensation until occurrence of a future event, such as commencement of a formal engagement. In certain cases, Consultants have attributes of Blackstone “employees” (e.g., they can be expected to have dedicated offices at Blackstone, receive administrative support from Blackstone personnel, participate in general meetings and events for Blackstone personnel or work on Blackstone matters as their primary or sole business activity, have Blackstone-related e-mail addresses or business cards and participate in certain benefit arrangements typically reserved for Blackstone employees), even though they are not Blackstone employees, affiliates or personnel for purposes of the Dealer Manager Agreement and the Advisory Agreement, and their salary and related expenses are paid by us or by portfolio entities without any reduction or offset to the Adviser’s management fees. Some Consultants work only for us and/or portfolio entities, while other Consultants may have other clients. In particular, in some cases, Consultants, including those with a “Senior Advisor” title, have been and will be engaged with the responsibility to source and recommend transactions to the Adviser potentially on a full-time and/or exclusive basis and, notwithstanding any overlap with the responsibilities of the Adviser under the Advisory Agreement, the compensation to such Consultants may be borne fully by us (with no reduction or offset to the management fee paid to the Adviser). If such Senior Advisors generate investment opportunities on our behalf, such members may receive special additional fees or allocations comparable to those received by a third party in an arm’s length transaction. Consultants could have conflicts of interest between their work for us and portfolio entities, on the one hand, and themselves or other clients, on the other hand, and the Adviser is limited in its ability to monitor and mitigate these conflicts.

We may source, sell and/or purchase assets either to or from the Adviser and its affiliates, or issued by affiliates of the Adviser, and such transactions may cause conflicts of interest.

We may directly or indirectly source, sell and/or purchase all or any portion of an asset (or portfolio of assets/investments) to or from the Adviser and its affiliates or their respective related parties. Such transactions will be subject to the approval of a majority of directors (including a majority of our independent directors) not otherwise interested in the transaction. We may also source, sell to and/or purchase form third parties interests in or assets issued by affiliates of the Adviser or their respective related parties and such transactions would not require approval by our independent directors or an offset of any fees we otherwise owe to the Adviser or its affiliates. The transactions referred to in this paragraph involve conflicts of interest, as our sponsor and its affiliates may receive fees and other benefits, directly or indirectly, from or otherwise have interests in both parties to the transaction.

Certain Other Blackstone Accounts have similar or overlapping investment objectives and guidelines, and we will not be allocated certain opportunities and may be allocated only opportunities with lower relative returns.

Blackstone invests its own capital and third-party capital on behalf of Other Blackstone Accounts in a wide variety of investment opportunities on a global basis. Not every opportunity suitable for us will be allocated to us in whole or in part. First, certain exceptions exist that allow specified types of investment opportunities that fall within our investment objectives or strategy to be allocated in whole or in part to Blackstone itself or Other Blackstone Accounts, such as strategic investments made by Blackstone itself (whether in financial institutions or otherwise) and investments by Other Blackstone Accounts that have investment objectives or guidelines similar to or overlapping with ours. It is expected that some activities of Blackstone, Other Blackstone Accounts and portfolio entities will compete with us for one or more investment opportunities that are consistent with our investment objectives, and as a result such investment opportunities may only be available on a limited basis, or not at all, to us. The Adviser may have conflicting loyalties in determining whether an investment opportunity should be allocated to us or an Other Blackstone Account. Our sponsor has adopted guidelines and policies, which it can be expected to update from time to time, regarding allocation of investment opportunities.

With respect to Other Blackstone Accounts with investment objectives or guidelines that overlap with ours but that do not have priority over us (including the Private Core+ Accounts), investment opportunities are allocated among us and one or more Other Blackstone Accounts in accordance with our sponsor’s prevailing policies and procedures on a basis that the Adviser and its affiliates believe to be fair and reasonable in their sole discretion, which is generally pro rata based on relative available capital, subject to the following considerations: (i) any applicable investment objectives or focus of ours and such Other Blackstone Accounts (which, for us, includes our primary objective of providing attractive current income in the form of regular, stable cash distributions to achieve an attractive distribution yield), (ii) any investment limitations, parameters or contractual provisions of ours and such Other Blackstone Accounts (e.g., joint venture investments between us and an Other Blackstone Account must be on the same terms and satisfy the restrictions of all participants, such as lowest leverage targeted by any participant), (iii) the sector, geography/location, expected return profile, expected distribution rates, anticipated cash flows, expected stability or volatility of cash flows, leverage profile, risk profile, and other features of the applicable investment opportunity and its impact on portfolio concentration and diversification, (iv) avoiding allocation that could result in de minimis or odd lot investments and (v) legal, tax, accounting, regulatory and other considerations deemed relevant by the Adviser and its affiliates (including, without limitation, maintaining our qualification as a REIT and our status as a non-investment company exempt from the Investment Company Act).

Currently, a Private Core+ Account invests in “core+” real estate and real estate-related assets in the United States and Canada (which are generally substantially stabilized assets generating relatively stable cash flow), with a focus on office, multifamily, industrial and retail assets in major U.S. markets. To the extent an investment satisfies the investment objectives of us and the Private Core+ Accounts on the same terms, including at the lower leverage targeted by the Private Core+ Accounts, such investment will be allocated in accordance with Blackstone’s prevailing policies and procedures described above (including maintaining our status as a non-investment company exempt from the Investment Company Act). Certain Other Blackstone Accounts also invest in real estate debt with investment objectives or guidelines that overlap with ours, but do not have priority over us. To the extent an investment satisfies the investment objectives of us and such Other Blackstone Accounts, such investment will be allocated in accordance with Blackstone’s prevailing policies and procedures described above. There may be instances where an overlapping investment opportunity would have satisfied our primary investment objective of providing attractive current income in the form of regular, stable cash distributions to achieve an attractive distribution yield assuming our targeted leverage ratio in the range of 60%, but which does not satisfy our investment objectives at the lower targeted leverage ratio of the Private Core+ Accounts. If the Adviser and its affiliates determine to use the lower leverage ratio, such overlapping investment opportunity would not be allocated to us in whole or part. A sharing of the investment opportunity at different leverage ratios would not be possible because such joint venture investments with the Private Core+ Accounts must be on the same terms (including leverage ratio).

Furthermore, the Select Opportunistic Blackstone Accounts invest in “opportunistic” real estate and real estate-related assets globally (which often are undermanaged assets and with higher potential for equity appreciation) and have priority over us with respect to such investment opportunities. This priority will result in fewer investment opportunities being made available to us.

As of December 31, 2019, Other Blackstone Accounts with investment objectives or guidelines that overlap with our primary strategy but that do not have priority over us (including the Private Core+ Accounts) that are in their investing stage had no unused capital commitments and Select Opportunistic Blackstone Accounts (which are Other Blackstone Accounts that receive priority over us and whose investment strategies are generally less similar to ours but can overlap to some extent) in their investing stage had approximately $16.7 billion of unused capital commitments.

The Adviser and its affiliates will calculate available capital, weigh the factors described above (which will not be weighted equally) and make other investment allocation decisions in accordance with their prevailing policies and procedures in their sole discretion. The manner in which our available capital is determined may differ from, or subsequently change with respect to, Other Blackstone Accounts. The amounts and forms of leverage utilized for investments will also be determined by the Adviser and its affiliates in their sole discretion. There is no assurance that any conflicts arising out of the foregoing will be resolved in our favor. Blackstone is entitled to amend its policies and procedures at any time without prior notice or our consent.

The amount of performance-based compensation charged and/or management fees paid by us may be less than or exceed the amount of performance-based compensation charged and/or management fees paid by Other Blackstone Accounts. Such variation may create an incentive for our sponsor to allocate a greater percentage of an investment opportunity to us or such Other Blackstone Accounts, as the case may be.

Under certain circumstances, our Adviser may determine not to pursue some or all of an investment opportunity within our investment objectives and guidelines, including without limitation, as a result of business, reputational or other reasons applicable to us, Other Blackstone Accounts, Blackstone or its affiliates. In addition, the Adviser and its affiliates may determine that we should not pursue some or all of an investment opportunity, including, by way of example and without limitation, because we have already invested sufficient capital in the investment, sector, industry, geographic region or markets in question, as determined by the Adviser and its affiliates in their good faith discretion, or the investment is not appropriate for us for other reasons as determined by the Adviser and its affiliates in their good faith reasonable sole discretion. In any such case Blackstone could, thereafter, offer such opportunity to other parties, including Other Blackstone Accounts, portfolio entities, joint venture partners, related parties or third parties. Any such Other Blackstone Accounts may be advised by a different Blackstone business group with a different investment committee, which could determine an investment opportunity to be more attractive than the Adviser believes to be the case. In any event, there can be no assurance that the Adviser’s assessment will prove correct or that the performance of any investments actually pursued by us will be comparable to any investment opportunities that are not pursued by us. Blackstone, including its personnel, will, in certain circumstances, receive compensation from any such party that makes the investment, including an allocation of carried interest or referral fees, and any such compensation could be greater than amounts paid by us to the Adviser. In some cases Blackstone earns greater fees when Other Blackstone Accounts participate alongside or instead of us in an investment.

When the Adviser and its affiliates determine not to pursue some or all of an investment opportunity for us that would otherwise be within our investment objectives and strategies, and Blackstone provides the opportunity or offers the opportunity to Other Blackstone Accounts, Blackstone, including its personnel (including real estate personnel), can be expected to receive compensation from the Other Blackstone Accounts, whether or not in respect of a particular investment, including an allocation of carried interest or referral fees, and any such compensation could be greater than amounts paid by us to the Adviser. As a result, the Adviser (including real estate personnel who receive such compensation) could be incentivized to allocate investment opportunities away from us to or source investment opportunities for Other Blackstone Accounts.

The Adviser and its affiliates make good faith determinations for allocation decisions based on expectations that will, in certain circumstances, prove inaccurate. Information unavailable to the Adviser, or circumstances not foreseen by the Adviser at the time of allocation, may cause an investment opportunity to yield a different return than expected. For example, an investment opportunity that the Adviser and its affiliates determine to be consistent with the return objective of Other Blackstone Accounts rather than us may not match the expectations and underwriting of the Adviser and its affiliates and generate an actual return that would have been appropriate for us. Conversely, an investment that the Adviser and its affiliates expect to be consistent with our return objectives will, in certain circumstances, fail to achieve them. There is no assurance that any conflicts arising out of the foregoing will be resolved in our favor. Blackstone is entitled to amend its policies and procedures at any time without prior notice or our consent.

Our board of directors has adopted a resolution that renounces our interest or expectancy with respect to business opportunities and competitive activities.

Our board of directors has adopted a resolution that renounces our interest or expectancy in, or in being offered an opportunity to participate in, business opportunities, and provides that none of Blackstone or its affiliates, our directors or any person our directors control must refrain from competing with us or present to us such business opportunities. Under this resolution Blackstone and its affiliates and our directors or any person our directors control would not be obligated to present to us opportunities unless those opportunities are expressly offered to such person in his or her capacity as a director or officer and intended exclusively for us or any of our subsidiaries, and those persons will be able to engage in competing activities without any restriction imposed as a result of Blackstone’s or its affiliates’ status as a stockholder or Blackstone’s affiliates’ status as our officers or directors.

We co-invest with Blackstone affiliates and such investments are at times in different parts of the capital structure of an issuer and may otherwise involve conflicts of interest. When we hold investments in which Other Blackstone Accounts have a different principal investment, conflicts of interest arise between us and Other Blackstone Accounts, and the Adviser may take actions that are adverse to us.

We co-invest with Other Blackstone Accounts in investments that are suitable for both us and such Other Blackstone Accounts. We may hold an interest in an investment that is different (including with respect to relative seniority) than the interests held by Other Blackstone Accounts. In these situations, conflicts of interest will arise. In order to mitigate any such conflicts of interest, in certain circumstances we will likely recuse ourselves from participating in any decisions relating or with respect to such investment by us or the applicable investments by the Other Blackstone Accounts, or by establishing groups separated by information barriers (which can be expected to be temporary and limited purpose in nature) within Blackstone to act on behalf of each of the clients. Despite these, and any of the other actions described below that the Adviser may take to mitigate the conflict, Blackstone may be required to take action when it will have conflicting loyalties between its duties to us and such Other Blackstone Accounts, which may adversely impact us. In that regard, actions may be taken for the Other Blackstone Accounts that are adverse to us (and vice versa). If the Other Blackstone Account maintains voting rights with respect to the securities it holds, or if we do not recuse ourselves, Blackstone may be required to take action where it will have conflicting loyalties between its duties to us and such Other Blackstone Account, which may adversely impact us. If we recuse ourselves from decision-making, we will generally rely upon a third party to make the decisions, and the third party could have conflicts or otherwise make decisions that Blackstone would not have made.

There can be no assurance that any conflict will be resolved in our favor. Conflicts can also be expected to arise in determining the amount of an investment, if any, to be allocated among potential investors and the respective terms thereof. There can be no assurance that the return on our investment will be equivalent to or better than the returns obtained by the other affiliates participating in the transaction. In addition, it is anticipated that in a bankruptcy proceeding our interest will likely be subordinated or otherwise adversely affected by virtue of such Other Blackstone Accounts’ involvement and actions relating to such investment. For example, in circumstances where we hold a junior mezzanine interest in an issuer, holders of more senior classes of debt issued by such entity (which may include Other Blackstone Accounts) may take actions for their benefit (particularly in circumstances where such issuer faces financial difficulty or distress) that further subordinate or adversely impact the value of our investment in such issuer.

In connection with negotiating loans, bank or securitization financings in respect of our real estate-related transactions, Blackstone will generally obtain the right to participate on its own behalf (or on behalf of vehicles it manages) in a portion of the financings with respect to such Blackstone-sponsored transactions (including transactions where the underlying collateral includes property owned by Other Blackstone Accounts) upon an agreed upon set of terms. We do not believe that this arrangement has an effect on the overall terms and conditions negotiated with the arrangers of such senior loans other than as described in the preceding sentence. If we make or have an investment in a property in which an Other Blackstone Account has a mezzanine or other debt investment, or vice versa, Blackstone may have conflicting loyalties between its duties to us and to other affiliates. Such investments may inherently give rise to conflicts of interest or perceived conflicts of interest between or among the various classes of securities that may be held by such entities. Because of the affiliation with Blackstone, the Adviser may have a greater incentive to invest in Blackstone-sponsored financings (as compared to real estate-related financings sponsored by other real estate firms or financial sponsors). In certain circumstances, we may be required to commit funds necessary for an investment prior to the time that all anticipated debt (senior and/or mezzanine) financing has been secured. In such circumstance, Other Blackstone Accounts and/or Blackstone itself (using, in whole or in part, its own balance sheet capital), may provide bridge or other short-term financing and/or commitments, which at the time of establishment are intended to be replaced and/or syndicated with longer-term financing. In any such circumstance, the Other Blackstone Accounts and/or Blackstone itself may receive compensation for providing such financing and/or commitment (including origination, ticking or commitment fees), which fees will not be shared with and/or otherwise result in an offset of the management fee paid to the Adviser. The conflicts applicable to Other Blackstone Accounts who invest in different securities of issuers will apply equally to Blackstone itself in such situations.

To the extent that we make or have an investment in, or through the purchase of debt obligations become a lender to, a company in which an Other Blackstone Account has a debt or equity investment (including through investments in CMBS where the underlying properties are owned by Other Blackstone Accounts), or if an Other Blackstone Account participates in a separate tranche of a financing with respect to a portfolio entity, Blackstone will generally have conflicting loyalties between its duties to us and to Other

Blackstone Accounts. In that regard, actions may be taken for the Other Blackstone Accounts that are adverse to us (and vice versa). Moreover, we will generally “follow the vote” of other similarly situated third-party creditors (if any) in voting and governance matters where conflicts of interest exist and will have a limited ability to separately protect our investment and will be dependent upon such third parties’ actions (which may not be as capable as the Adviser and may have other conflicts arising from their other relationships, both with Blackstone and other third parties that could impact their decisions). In addition, conflicts can also be expected to arise in determining the amount of an investment, if any, to be allocated among potential investors and the respective terms thereof.

We may seek to participate in investments relating to (i) the refinancing or modifications of loan investments or portfolios held or proposed to be acquired by certain Other Blackstone Accounts, and Other Blackstone Accounts may refinance a loan currently held by us and/or (ii) portfolio entities of one or more Other Blackstone Accounts, including primary or secondary issuances of loans or other interests by such portfolio entities. While it is expected that our participation in connection with any such transactions will generally be negotiated by third parties, such transactions will give rise to potential or actual conflicts of interest.

We may invest in joint ventures with Other Blackstone Accounts or divide a pool of investments among us and Other Blackstone Accounts.

To the extent we acquire properties through joint ventures with Other Blackstone Accounts, such investments will be allocated as described above, and we may be allocated interests in such joint ventures that are smaller than the interests of the Other Blackstone Accounts. Generally, we expect the level of control we have with respect to any joint venture will correspond to our economic interest in such joint venture. We will not participate in joint ventures in which we do not have or share control to the extent that we believe such participation would potentially threaten our status as a non-investment company exempt from the Investment Company Act. This may prevent us from receiving an allocation with respect to certain investment opportunities that are suitable for both us and one or more Other Blackstone Accounts. Such joint venture investments will involve risks and conflicts of interests. See “—Risks Related Investments in Real Estate—We may make a substantial amount of joint venture investments, including with Blackstone affiliates. Joint venture investments could be adversely affected by our lack of sole decision-making authority, our reliance on the financial condition of our joint venture partners and disputes between us and our joint venture partners.”

Our sponsor may have an opportunity to acquire a portfolio or pool of assets, securities and instruments in a single or related transactions with a particular seller that it determines in its sole discretion should be divided and allocated among us and Other Blackstone Accounts, including where certain of such assets, securities or instruments are specifically allocated (in whole or in part) to us and such Other Blackstone Accounts. Such allocations generally would be based on its assessment of, among other things, the expected returns and risk profile of the portfolio and each of the assets therein and may provide greater benefits to Other Blackstone Accounts than to us (or vice versa). For example, some of the assets in a pool may have an opportunistic return profile not appropriate for us. Also, a pool may contain both debt and equity instruments that our sponsor determines should be allocated to different funds. In all of these situations, the combined purchase price paid to a seller would be allocated among the multiple assets, securities and instruments in the pool based on a determination by the seller, by a third-party valuation firm and/or by the Adviser and its affiliates, and therefore among us and the Other Blackstone Accounts acquiring any of the assets, securities and instruments. To the extent that any such allocations would cause us to participate in a transaction with Other Blackstone Accounts for a portfolio or pool of assets, securities and instruments that we otherwise may not have acquired individually, our sponsor will have conflicting loyalties between its duties to us and to Other Blackstone Accounts.

Similarly, there will likely be circumstances in which we and Other Blackstone Accounts will sell assets in a single or related transactions to a buyer. In some cases a counterparty will require an allocation of value in the purchase or sale contract, though our sponsor could determine such allocation of value is not accurate and should not be relied upon. Unless an appraisal is required by our charter, our sponsor will generally rely upon internal analysis to determine the ultimate allocation of value, though it could also obtain third party valuation reports. Regardless of the methodology for allocating value, our sponsor will have conflicting duties to us and Other Blackstone Accounts when they buy or sell assets together in a portfolio, including as a result of different financial incentives our sponsor has with respect to different vehicles, most clearly when the fees and compensation, including performance-based compensation, earned from the different vehicles differ. There can be no assurance that our investment will not be valued or allocated a purchase price that is higher or lower than it might otherwise have been allocated if such investment were acquired or sold independently rather than as a component of a portfolio shared with Other Blackstone Accounts.

Blackstone may structure certain investments such that Blackstone will face conflicting fiduciary duties to us and certain debt funds.

It is expected that Blackstone will structure certain investments such that one or more mezzanine or other investment funds, structured vehicles or other collective investment vehicles primarily investing in senior secured loans, distressed debt, subordinated debt, high-yield securities, CMBS and other similar debt instruments managed by affiliates of Blackstone (collectively, “Debt Funds”) are offered the opportunity to participate in the debt tranche of an investment allocated to us. The Adviser and its affiliates owe fiduciary duties to the Debt Funds as well as to us. If the Debt Funds purchase high-yield securities or other debt instruments related to a property or real estate company that we hold an investment in (or if we make or have an investment in or, through the purchase of debt obligations become a lender to, a company or property in which a Debt Fund or an Other Blackstone Account or another Blackstone real estate fund or vehicle has a mezzanine or other debt investment), the Adviser and its affiliates will face a conflict of interest in respect of the advice given to, or the decisions made with regard to, the Debt Funds, such Other Blackstone Accounts and us (e.g., with respect to the terms of such high-yield securities or other debt instruments, the enforcement of covenants, the terms of recapitalizations and the resolution of workouts or bankruptcies). Similarly, certain Other Blackstone Accounts can be expected to invest in securities of publicly traded companies that are actual or potential investments of ours. The trading activities of Other Blackstone Accounts may differ from or be inconsistent with activities that are undertaken for our account in any such securities. In addition, we may not pursue an investment otherwise within our investment objectives and guidelines as a result of such trading activities by Other Blackstone Account.

Blackstone may raise and/or manage Other Blackstone Accounts, which could result in the reallocation of Blackstone personnel and the direction of potential investments to such Other Blackstone Accounts.

Blackstone reserves the right to raise and/or manage Other Blackstone Accounts, including opportunistic and stabilized and substantially stabilized real estate funds or separate accounts, dedicated managed accounts, investments suitable for lower risk, lower return funds or higher risk, higher return funds, real estate debt obligation and trading investment vehicles, real estate funds primarily making investments globally, in a particular region outside of the U.S. and Canada, or in a single sector of the real estate investment space (e.g., office, industrial, retail or multifamily) or making non-controlling investments in public and private debt and equity securities and/or investment funds that may have the same or similar investment objectives or guidelines as us or investments, including those raised by us and one or more managed accounts (or other similar arrangements structured through an entity) for the benefit of one or more specific investors (or related group of investors) which, in each case, may have investment objectives or guidelines that overlap with ours. See “—Certain Other Blackstone Accounts have similar or overlapping investment objectives and guidelines, and we will not be allocated certain opportunities and may be allocated only opportunities with lower relative returns.” In particular, we expect that there will be overlap of real property and real estate debt investment opportunities with certain Other Blackstone Accounts that are actively investing and similar overlap with future Other Blackstone Accounts. The closing of an Other Blackstone Account could result in the reallocation of Blackstone personnel, including reallocation of existing real estate professionals, to such Other Blackstone Account. In addition, potential investments that may be suitable for us may be directed toward such Other Blackstone Account.

Blackstone’s potential involvement in financing a third party’s purchase of assets from us could lead to potential or actual conflicts of interest.

We may from time to time dispose of all or a portion of an investment by way of a third-party purchaser’s bid where Blackstone or one or more Other Blackstone Accounts is providing financing as part of such bid or acquisition of the investment or underlying assets thereof. This may include the circumstance where Blackstone or one or more Other Blackstone Accounts is making commitments to provide financing at or prior to the time such third-party purchaser commits to purchase such investments or assets from us. Such involvement of Blackstone or one or more Other Blackstone Accounts as such a provider of debt financing in connection with the potential acquisition of portfolio investments by third parties from us may give rise to potential or actual conflicts of interest.

We may provide debt financing in connection with acquisitions by third parties of assets owned by Other Blackstone Accounts.

We may provide financing as part of a third-party purchaser’s bid or acquisition of (or investment in) a portfolio entity (or the underlying assets of) owned by one or more Other Blackstone Accounts (or in connection with the acquisitions by one or more Other Blackstone Accounts or their affiliates of assets or interests (and/or portfolios thereof) owned by a third party). This may include making commitments to provide financing at, prior to or around the time that any such purchaser commits to or makes such investments. We may make investments and provide debt financing with respect to portfolio entities in which Other Blackstone Accounts and/or affiliates hold or subsequently acquire an interest. While the terms and conditions of any such arrangements will generally be on market terms, the involvement of the Other Blackstone Accounts or affiliates in such transactions may affect credit decisions and the terms of such transactions or arrangements and/or may otherwise influence the Adviser’s decisions, which will give rise to potential or actual conflicts of interest and which may adversely impact us. For example, such transactions may involve the

partial or complete payoff of such loans (with related proceeds being received by the applicable Other Blackstone Accounts) and/or otherwise result in restructurings of terms and pricing relating to such existing loans with the borrowers thereof in respect of which such Other Blackstone Accounts may receive refinancing proceeds and/or a retained interest in such loans in accordance with such restructuring arrangements. Additionally, in certain situations we may not commit to provide financing until a third party has committed to make a deposit in connection with the acquisition of an investment from an Other Blackstone Account, which may result in us being disadvantaged in the overall bid process or potentially not consummating the investment.

Disputes between Blackstone and our joint venture partners who have pre-existing investments with Blackstone may affect our investments relating thereto.

Some of the third-party operators and joint-venture partners with which the Adviser may elect to co-invest our capital may have pre-existing investments with Blackstone. The terms of these preexisting investments may differ from the terms upon which we invest with such operators and partners. To the extent a dispute arises between Blackstone and such operators and partners, our investments relating thereto may be affected.

Certain principals and employees will, in certain circumstances, be involved in and have a greater financial interest in the performance of other Blackstone funds or accounts, and such activities may create conflicts of interest in making investment decisions on our behalf.

Certain Blackstone personnel will, in certain circumstances, be subject to a variety of conflicts of interest relating to their responsibilities to us, Other Blackstone Accounts and portfolio entities, and their outside business activities as members of investment or advisory committees or boards of directors of or advisors to investment funds, corporations, foundations or other organizations. Such positions create a conflict if such other entities have interests that are adverse to those of us, including if such other entities compete with us for investment opportunities or other resources. The Blackstone personnel in question may have a greater financial interest in the performance of the other entities than our performance. This involvement may create conflicts of interest in making investments on our behalf and on behalf of such other funds, accounts and other entities. Although the Adviser will generally seek to minimize the impact of any such conflicts, there can be no assurance they will be resolved favorably for us. Also, Blackstone personnel are generally permitted to invest in alternative investment funds, real estate funds, hedge funds and other investment vehicles, as well as securities of other companies, some of which will be competitors of ours. Investors will not receive any benefit from any such investments, and the financial incentives of Blackstone personnel in such other investments could be greater than their financial incentives in relation to us.

The Adviser may face conflicts of interests in choosing our service providers and certain service providers may provide services to the Dealer Manager, the Adviser or Blackstone on more favorable terms than those payable by us.

Certain third-party advisors and other service providers and vendors to us (including accountants, administrators, lenders, bankers, brokers, attorneys, consultants, title agents, property managers and investment or commercial banking firms) are owned by Blackstone or Other Blackstone Accounts or provide goods or services to, or have other business, personal, financial or other relationships with, Blackstone, the Other Blackstone Accounts and their portfolio entities, the Dealer Manager, the Adviser and affiliates and personnel of the foregoing. Also, advisors, lenders, investors, commercial counterparties, vendors and service providers (including any of their affiliates or personnel) to us could have other commercial or personal relationships with Blackstone, Other Blackstone Accounts and their respective affiliates, personnel or family members of personnel of the foregoing.

Although Blackstone selects service providers and vendors it believes are most appropriate in the circumstances based on its knowledge of such service providers and vendors (which knowledge is generally greater in the case of service providers and vendors that have other relationships to Blackstone), the relationship of service providers and vendors to Blackstone as described above will, in certain circumstances, influence Blackstone in deciding whether to select, recommend or form such an advisor or service provider to perform services for us, the cost of which will generally be borne directly or indirectly by us, and incentivize Blackstone to engage such service provider over a third party, utilize the services of such service providers and vendors more frequently than would be the case absent the conflict, or to cause us to pay such service providers and vendors higher fees or commissions than would be the case absent the conflict. The incentive could be created by current income and/or the generation of enterprise value in a service provider or vendor; Blackstone may also have an incentive to invest in or create service providers and vendors to realize on these opportunities. Furthermore, Blackstone will from time to time encourage third-party service providers to Other Blackstone Accounts to use other service providers and vendors in which Blackstone has an interest, and Blackstone has an incentive to use third-party service providers who do so as a result of the additional business for the related service providers and vendors. Fees paid to or value created in these service providers and vendors do not offset or reduce the Adviser’s management fee and are not otherwise shared with us. In the case of brokers of securities, our sponsor has a best execution policy that it updates from time to time to comply with regulatory requirements in applicable jurisdictions.

Blackstone, Other Blackstone Accounts, portfolio entities, and personnel and related parties of the foregoing will receive fees and compensation, including performance-based and other incentive fees, for products and services provided to us, such as fees for asset, development and property management; arranging, underwriting, syndication or refinancing of a loan or investment (or other additional fees, including acquisition fees, loan modification or restructuring fees); loan servicing; special servicing; other servicing; administrative services; advisory services on purchase or sale of an asset or company; other advisory services; investment banking and capital market services; placement agent services; fund administration; internal legal and tax planning services; information technology products and services; insurance procurement; brokerage solutions and risk management services; data extraction and management products and services; fees for monitoring and oversight of loans or title insurance; and other products and services (including but not limited to restructuring, consulting, monitoring, commitment, syndication, origination, organizational and financing, and divestment services). Such parties will also provide products and services for fees to Blackstone, Other Blackstone Accounts and portfolio entities, and their personnel and related parties, as well as third parties. Through its Innovations group, Blackstone incubates businesses that can be expected to provide goods and services to us, our portfolio properties, Other Blackstone Accounts and their affiliates, as well as other Blackstone related parties and third parties. By contracting for a product or service from a business related to Blackstone, we would provide not only current income to the business and its stakeholders, but could also create significant enterprise value in them, which would not be shared with us or our stockholders and could benefit Blackstone directly and indirectly. Also, Blackstone, Other Blackstone Accounts and portfolio entities, and their personnel and related parties will, in certain circumstances, receive compensation or other benefits, such as through additional ownership interests or otherwise, dsirectly related to the consumption of products and services by us. We will incur expense in negotiating for any such fees and services. Finally, Blackstone and its personnel and related parties may also receive compensation for origination expenses and with respect to unconsummated transactions.

Portfolio entities of Other Blackstone Accounts are and will be counterparties in agreements, transactions and other arrangements with us for the provision of goods and services, purchase and sale of assets and other matters. These agreements, transactions and other arrangements will involve payment of fees and other amounts, none of which will result in any offset to the management fees we pay to the Adviser notwithstanding that some of the services provided by such portfolio entity are similar in nature to the services provided by the Adviser. Generally, we may engage Blackstone-affiliated portfolio entities only if a majority of our board of directors, and a majority of the affiliate transaction committee (which is comprised of each of our independent directors) not otherwise interested in the transaction approve the transaction as being fair and reasonable to us and on terms and conditions no less favorable to us than those available from unaffiliated third parties.

We may engage portfolio entities of Other Blackstone Accounts to provide some or all of the following services: (a) corporate support services (including, without limitation, accounting/audit (including valuation support services), account management, corporate secretarial services, data management, directorship services, finance/budget, human resources, information technology, judicial processes, legal, operational coordination (i.e., coordination with JV partners, property managers), risk management, tax and treasury; (b) loan management (including, without limitation, monitoring, restructuring and work-out of performing, sub-performing and nonperforming loans, administrative services, and cash management); (c) management services (i.e., management by a portfolio entity, Blackstone affiliate or third party (e.g., a third party manager) of operational services); (d) operational services (i.e., general management of day to day operations, including, without limitation, construction management, leasing services, project management and property management); and (e) transaction support services (including, without limitation, managing relationships with brokers and other potential sources of investments, identifying potential investments, coordinating with investors, assembling relevant information, conducting financial and market analyses and modelling, coordinating closing/post-closing procedures for acquisitions, dispositions and other transactions, coordination of design and development works, overseeing brokers, lawyers, accountants and other advisors, providing legal and accounting services, assistance with due diligence, preparation of project feasibilities, site visits, and specification of technical analysis and review of (i) design and structural work, (ii) architectural, façade and external finishes, (iii) certifications, (iv) operations and maintenance manuals and (v) statutory documents).

Such portfolio entities that can be expected to provide services to us include, without limitation, the following, and may include additional portfolio entities that may be formed or acquired in the future:

LivCor. We have engaged LivCor, L.L.C., a portfolio company owned by a Blackstone-advised fund for certain of our multifamily properties.

Equity Office Management/Equity Office Properties. We have engaged Equity Office Management, L.L.C., a portfolio company owned by Blackstone-advised funds for certain of our office properties.

ShopCore. We have engaged ShopCore Properties TRS Management LLC, a portfolio company owned by a Blackstone-advised fund for certain of our retail properties.

Link. We have engaged Link Industrial Properties Holdco LLC, a portfolio company owned by a Blackstone-advised fund for certain

BRE Hotels and Resorts. We have engaged BRE Hotels & Resorts LLC, a portfolio company controlled (but not owned) by a Blackstone-advised fund for certain of our hotel properties.

Revantage. We have engaged Revantage Corporate Services, LLC, a portfolio company owned by a Blackstone-advised fund, to provide corporate support services (including, without limitation, accounting, legal, tax, and treasury, as applicable) and transaction support services to certain of our investments directly.

We compensate these service providers and vendors owned by the Other Blackstone Accounts for services rendered to us, including through promote or other incentive-based compensation payable to their management teams and other related parties. The incentive-based compensation paid with respect to a portfolio entity or property will vary from the incentive based compensation paid with respect to other portfolio entities and properties; as a result the management team or other related parties may have greater incentives with respect to certain properties and portfolio entities relative to others, and the performance of certain properties and portfolio entities may provide incentives to retain management that also service other properties and portfolio entities. Service providers and vendors owned by Other Blackstone Accounts may charge us for certain goods and services at rates generally consistent with those available in the market for similar goods and services. The discussion regarding the determination of market rates below applies equally in respect of the fees and expenses of the portfolio entity service providers, if charged at rates generally consistent with those available in the market. Such service providers and vendors may also pass through expenses for other services on a cost reimbursement, no-profit or break-even basis, in which case the service provider allocates costs and expenses directly associated with work performed for our benefit to us, along with any related tax costs and an allocation of the service provider’s overhead, including any of the following: salaries, wages, benefits and travel expenses; marketing and advertising fees and expenses; legal, accounting and other professional fees and disbursements; office space and equipment; insurance premiums; technology expenditures, including hardware and software costs; costs to engage recruitment firms to hire employees; diligence expenses; one-time costs, including costs related to building-out and winding-down a portfolio property; taxes; and other operating and capital expenditures. Any of the foregoing costs, although allocated in a particular period, will, in certain circumstances, relate to activities occurring outside the period, and therefore we could pay more than our pro rata portion of fees for services. The allocation of overhead among the entities and assets to which services are provided can be expected to be based on any of a number of different methodologies, including, without limitation, “cost” basis as described above, “time-allocation” basis, “per unit” basis, “per square footage” basis or “fixed percentage” basis. There can be no assurance that a different manner of allocation would result in our bearing less or more costs and expenses. A service provider may subcontract certain of its responsibilities to other portfolio entities. In such circumstances, the relevant subcontractor could invoice the portfolio entity for fees (or in the case of a cost reimbursement arrangement, for allocable costs and expenses) in respect of the services provided by the subcontractor. The portfolio entity, if charging on a cost reimbursement, no-profit or break-even basis, would in turn allocate those costs and expenses as it allocates other fees and expenses as described above.

We, Other Blackstone Accounts and their affiliates are expected to enter into joint ventures with third parties to which the service providers and vendors described above will provide services. In some of these cases, the third-party joint venture partner may negotiate to not pay its pro rata share of fees, costs and expenses to be allocated as described above, in which case we, Other Blackstone Accounts and their affiliates that also use the services of the portfolio entity service provider will, directly or indirectly, pay the difference, or the portfolio entity service provider will bear a loss equal to the difference. Portfolio entity service providers described in this section are generally owned and controlled by a Blackstone fund such as Other Blackstone Accounts. In certain instances a similar company could be owned or controlled by Blackstone directly. Service providers described in this risk factor are generally owned and controlled by a Blackstone fund, such as the Other Blackstone Accounts.

Blackstone has a general practice of not entering into any arrangements with advisors, vendors or service providers that provide lower rates or discounts to Blackstone itself compared to those available to us for the same services. However, legal fees for unconsummated transactions are often charged at a discount rate, such that if we consummate a higher percentage of transactions with a particular law firm than Blackstone, Other Blackstone Accounts and their affiliates, we could indirectly pay a higher net effective rate for the services of that law firm than Blackstone or Other Blackstone Accounts or their affiliates. Also, advisors, vendors and service providers often charge different rates or have different arrangements for different types of services. For example, advisors, vendors and service providers often charge fees based on the complexity of the matter as well as the expertise and time required to handle it. Therefore, to the extent the types of services used by us are different from those used by Blackstone, Other Blackstone Accounts and their affiliates and personnel, we can be expected to pay different amounts or rates than those paid by such other persons. Similarly, Blackstone, the Other Blackstone Accounts and affiliates and we can be expected to enter into agreements or other arrangements with vendors and other similar counterparties (whether such counterparties are affiliated or unaffiliated with Blackstone) from time to time whereby such counterparty will, in certain circumstances, charge lower rates (or no fee) or provide discounts or rebates for such counterparty’s products or services depending on the volume of transactions in the aggregate or other factors.

In addition to the service providers (including portfolio entity service providers) and vendors described above, we will engage in transactions with one or more businesses that are owned or controlled by Blackstone directly, not through one of its funds, including the businesses described below. These businesses will, in certain circumstances, also enter into transactions with other counterparties of ours. Blackstone could benefit from these transactions and activities through current income and creation of enterprise value in these businesses. Furthermore, Blackstone will from time to time encourage our third-party service providers to use other Blackstone-affiliated service providers and vendors in connection with our business and the business of portfolio entities and unaffiliated entities, and Blackstone has an incentive to use third-party service providers who do so as a result of the indirect benefit to Blackstone and additional business for the related service providers and vendors. No fees charged by these service providers and vendors will offset or reduce the Adviser’s management fees. Furthermore, Blackstone, the Other Blackstone Accounts and their affiliates and related parties will use the services of these Blackstone affiliates, including at different rates. Although Blackstone believes the services provided by its affiliates are equal or better than those of third parties, Blackstone directly benefits from the engagement of these affiliates, and there is therefore an inherent conflict of interest.

Blackstone-affiliated service providers and vendors, include, without limitation:

LNLS. Lexington National Land Services (“LNLS”) is a Blackstone affiliate that (i) acts as a title agent in facilitating and issuing title insurance, (ii) provides title support services for title insurance underwriters and (iii) acts as an escrow agent in connection with investments by us, Other Blackstone Accounts and their affiliates and related parties, and third parties. In exchange for such services LNLS earns fees, which would have otherwise been paid to third parties. If LNLS is involved in a transaction in which we participate, LNLS will benchmark such fees to the extent market data is available except when LNLS is providing such services in a state where the insurance premium or escrow fee, as applicable, is regulated by the state or when LNLS is part of a syndicate of title insurance companies where the insurance premium is negotiated by other title insurance underwriters or their agents.

Certain Blackstone-affiliated service providers and their respective personnel may receive a management promote, an incentive fee and other performance-based compensation in respect of our investments. Furthermore, Blackstone-affiliated service providers can be expected to charge costs and expenses based on allocable overhead associated with personnel working on relevant matters (including salaries, benefits and other similar expenses), provided that these amounts will not exceed market rates as determined to be appropriate under the circumstances. Generally, we may engage Blackstone-affiliated service providers only if a majority of our board of directors, and a majority of the affiliate transaction committee (which is comprised of each of our independent directors), not otherwise interested in the transaction approve the transaction as being fair and reasonable to us and on terms and conditions no less favorable to us than those available from unaffiliated third parties.

The Adviser and its affiliates will make determinations of market rates (i.e., rates that fall within a range that the Adviser and its affiliates has determined is reflective of rates in the applicable market and certain similar markets, though not necessarily equal to or lower than the median rate of comparable firms) based on its consideration of a number of factors, which are generally expected to include the experience of the Adviser and its affiliates with non-affiliated service providers as well as benchmarking data and other methodologies determined by the Adviser and its affiliates to be appropriate under the circumstances. In respect of benchmarking, while Blackstone often obtains benchmarking data regarding the rates charged or quoted by third parties for services similar to those provided by Blackstone affiliates in the applicable market or certain similar markets, relevant comparisons may not be available for a number of reasons, including, without limitation, as a result of a lack of a substantial market of providers or users of such services or the confidential or bespoke nature of such services (e.g., within property management services, different assets may receive different property management services). In addition, benchmarking data is based on general market and broad industry overviews, rather than determined on an asset by asset basis. As a result, benchmarking data does not take into account specific characteristics of individual assets then owned or to be acquired (such as location or size), or the particular characteristics of services provided. For these reasons, such market comparisons may not result in precise market terms for comparable services. Expenses to obtain benchmarking data will be borne by us or by Other Blackstone Accounts and will not offset the management fee we pay to the Adviser. Finally, in certain circumstances third-party benchmarking may be considered unnecessary, including because the price for a particular good or service is mandated by law (e.g., title insurance in rate regulated states). Some of the services performed by Blackstone-affiliated service providers could also be performed by our sponsor from time to time and vice versa. Fees paid by us to Blackstone-affiliated service providers do not offset or reduce the management fee we pay to the Adviser and are not otherwise shared with us.

For more information regarding our relationships with these entities, see “Selected Information Regarding our Operations—Related Party Transactions” in the Prospectus, as well as “Transactions with Related Persons and Certain Control Persons—Our Relationship with Our Adviser and Blackstone—Affiliate Service Agreements” in our definitive Proxy Statement on Schedule 14A, and “Related Party Transactions” in the notes to our consolidated financial statements appearing in this Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q, each as incorporated herein by reference.

Blackstone and Other Blackstone Accounts operate in multiple industries, including the real estate related information technology industry, and provide products and services to or otherwise contract with us, among others. In connection with any such investment,

Blackstone and Other Blackstone Accounts (or their respective portfolio entities and personnel and related parties) can be expected to make referrals or introductions to us or other portfolio entities in an effort, in part, to increase the customer base of such companies or businesses or because such referrals or introductions will, in certain circumstances, result in financial benefits, such as cash payments, additional equity ownership, participation in revenue share, accruing to the party making the introduction. In the alternative, Blackstone may form a joint venture (or other business relationship) with such a portfolio entity to implement such arrangements, pursuant to which the joint venture or business provides services (including, without limitation, corporate support services, loan management services, management services, operational services, risk management services, data management services, consulting services, brokerage services, insurance procurement, placement, brokerage and consulting services, and other services to such portfolio entities) that are referred to the joint venture or business by Blackstone. Such joint venture or business could use data obtained from such portfolio entities. We typically will not share in any fees, economics, equity or other benefits accruing to Blackstone, Other Blackstone Accounts and their respective portfolio entities as a result of such introduction.

We will enter into agreements regarding group procurement (such as CoreTrust, an independent group purchasing organization), benefits management, purchase of title and other insurance policies (which can be expected to include brokerage or placement thereof) and will otherwise enter into operational, administrative or management related initiatives. Blackstone will allocate the cost of these various services and products purchased on a group basis among us, Other Blackstone Accounts and portfolio entities. Some of these arrangements result in commissions, discounts, rebates or similar payments to Blackstone and its affiliates and personnel, or Other Blackstone Accounts and their portfolio entities, including as a result of transactions entered into by us, and such commissions or payment will not offset the management fee payable to the Adviser. Blackstone can be expected to also receive consulting or other fees from the parties to these group procurement arrangements. To the extent that a portfolio entity of an Other Blackstone Account is providing such a service, such portfolio entity and such Other Blackstone Account will benefit. Further, the benefits received by the particular portfolio entity providing the service will, in certain circumstances, be greater than those received by us in receiving the service. Conflicts exist in the allocation of the costs and benefits of these arrangements.

We will purchase or bear premiums, fees, costs and expenses (including any expenses or fees of insurance brokers) to insure us, our portfolio properties, the Adviser, Blackstone and their respective directors, officers, employees, agents and representatives and other indemnified parties, against liability in connection with our activities. This includes a portion of any premiums, fees, costs and expenses for one or more “umbrella”, group or other insurance policies maintained by Blackstone that cover one or more of us and Other Blackstone Accounts, the Adviser and Blackstone (including their respective directors, officers, employees, agents and representatives and other indemnified parties). The Adviser and its affiliates will make judgments about the allocation of premiums, fees, costs and expenses for such “umbrella”, group or other insurance policies among one or more of us and Other Blackstone Accounts, the Adviser and Blackstone on a fair and reasonable basis, in their discretion, and may make corrective allocations should they determine subsequently that such corrections are necessary or advisable. For example, some property insurance could be allocated on a property-by-property basis in accordance with the relative values of the respective assets that are insured by such policies.

Additionally, we and Other Blackstone Accounts (and their portfolio entities) will, in certain circumstances, jointly contribute to a pool of funds that can be expected to be used to pay losses that are subject to the deductibles on any group insurance policies, which contributions may similarly be allocated in accordance with the relative values of the respective assets that are insured by such policies (or other factors that Blackstone may reasonably determine).

In respect of such insurance arrangements, Blackstone may make corrective allocations from time to time should it determine subsequently that such adjustments are necessary or advisable. There can be no assurance that different allocations or arrangements than those implemented by Blackstone as provided above would not result in us and our portfolio properties bearing less (or more) premiums, deductibles, fees, costs and expenses for insurance policies.

Blackstone or an affiliate of Blackstone formed in the future may provide data management services to portfolio properties and may also provide such services directly to us and Other Blackstone Accounts (collectively, “Data Holders”). Such services may include assistance with obtaining, analyzing, curating, processing, packaging, organizing, mapping, holding, transforming, enhancing, marketing and selling such data (among other related data management and consulting services) for monetization through licensing or sale arrangements with third parties and, subject to the requirements under our charter (including any necessary approval of by our board of directors, including a majority of our independent directors not interested in the transaction) and any other applicable contractual limitations, with us, Other Blackstone Accounts, portfolio properties and other Blackstone affiliates and associated entities (including funds in which Blackstone and Other Blackstone Accounts make investments, and portfolio entities thereof). Where Blackstone believes appropriate, data from one Data Holder may be pooled with data from other Data Holders. Any revenues arising from such pooled data sets would be allocated between applicable Data Holders on a fair and reasonable basis as determined by the Blackstone in its discretion, with Blackstone able to make corrective allocations should it determine subsequently that such corrections were necessary or advisable. Blackstone is expected to receive compensation for such data management services, which may include a percentage of the revenues generated through any licensing or sale arrangements with respect to the relevant data, and which

compensation may also include fees, royalties and cost and expense reimbursement (including start-up costs and allocable overhead associated with personnel working on relevant matters (including salaries, benefits and other similar expenses)). Additionally, Blackstone may determine to share the products from such data management services within Blackstone or its affiliates (including Other Blackstone Accounts or their portfolio entities) at no charge and, in such cases, the Data Holders would not receive any financial or other benefit from having provided such data to Blackstone. The potential receipt of such compensation by Blackstone could create incentives for the Adviser to cause us to invest in portfolio entities with a significant amount of data that it might not otherwise have invested in or on terms less favorable than it otherwise would have sought to obtain.

We may be subject to potential conflicts of interest as a consequence of family relationships that Blackstone employees have with other real estate professionals.

Additionally, certain personnel and other professionals of Blackstone have family members or relatives that are actively involved in industries and sectors in which we invest or have business, personal, financial or other relationships with companies in such industries and sectors (including the advisors and service providers described above) or other industries, which gives rise to potential or actual conflicts of interest. For example, such family members or relatives might be officers, directors, personnel or owners of companies or assets which are actual or potential investments of us or our other counterparties and portfolio properties. Moreover, in certain instances, we can be expected to purchase or sell companies or assets from or to, or otherwise transact with, companies that are owned by such family members or relatives or in respect of which such family members or relatives have other involvement. In most such circumstances, we will not be precluded from undertaking any of these investment activities or transactions. To the extent Blackstone determines appropriate, conflict mitigation strategies may be put in place with respect to a particular circumstance, such as internal information barriers or recusal, disclosure or other steps determined appropriate by the Adviser.

Certain properties owned by us and/or an Other Blackstone Account will, in certain circumstances, be leased out to tenants that are affiliates of Blackstone, including but not limited to Other Blackstone Accounts and/or their respective portfolio companies, which would give rise to a conflict of interest. In such events, the Adviser will endeavor to ensure that such conflicts are resolved in a fair and equitable manner, subject to applicable oversight of the board of directors.

We have entered into an uncommitted line of credit with Blackstone Holdings Finance Co. L.L.C., an affiliate of Blackstone, pursuant to which we may borrow up to $150 million at an interest rate equal to the then-current interest rate offered by an unaffiliated third-party lender or, if no such rate is available, LIBOR plus 2.50%. Because this line of credit is with an affiliate of Blackstone, the terms of the agreement were not negotiated at arm’s-length. Blackstone may face conflicts of interest in connection with any borrowings or disputes under this uncommitted line of credit.

The personnel of the Dealer Manager and the Adviser may trade in securities for their own accounts, subject to restrictions applicable to Blackstone personnel.

The officers, directors, members, managers and employees of the Dealer Manager and the Adviser can be expected to trade in securities for their own accounts, subject to restrictions and reporting requirements as may be required by law and Blackstone policies, or otherwise determined from time to time by the Dealer Manager or the Adviser.

We have and continue to expect to have a diverse stockholder group and the interests of our stockholders may conflict with one another and may conflict with the interests of investors in other vehicles that we co-invest with.

Our stockholders may have conflicting investment, tax and other interests with respect to their investments in us and with respect to the interests of investors in other investment vehicles managed or advised by the Adviser or its affiliates that participate in the same investments as us. The conflicting interests of individual stockholders with respect to other stockholders and relative to investors in other investment vehicles and investors relate to, among other things, the nature, structuring, financing, tax profile and timing of disposition of investments. The Adviser may as a result have conflicts in making these decisions, which may be more beneficial for one or more (but not all) stockholder than for other stockholders. In addition, we may make investments that may have a negative impact on related investments made by the stockholders in separate transactions. In selecting and structuring investments appropriate for us, the Adviser considers the investment and tax objectives of us (including our qualification as a REIT) and our stockholders (and those of investors in other investment vehicles managed or advised by the Adviser or its affiliates) that participate in the same investments as us, not the investment, tax or other objectives of any stockholder individually. In addition, certain investors may also

be limited partners in Other Blackstone Accounts, including supplemental capital vehicles and co-investment vehicles that invest alongside us in one or more investments, which could create conflicts for the Adviser in the treatment of different investors.

Stockholders may also include affiliates of Blackstone, such as Other Blackstone Accounts, affiliates of portfolio entities, charities or foundations associated with Blackstone personnel and current or former Blackstone personnel, Blackstone’s senior advisors and operating partners, and any such affiliates, funds or persons may also invest in us. Except as provided in our charter, all of these Blackstone-related stockholders will have equivalent rights to vote and withhold consents as nonrelated stockholders. Nonetheless, Blackstone may have the ability to influence, directly or indirectly, these Blackstone-related stockholders.

We may be subject to additional potential conflicts of interests as a consequence of Blackstone’s status as a public company.

As a consequence of Blackstone’s status as a public company, our officers, directors, members, managers and employees and those of the Adviser may take into account certain considerations and other factors in connection with the management of the business and affairs of us and our affiliates that would not necessarily be taken into account if Blackstone were not a public company.

We, Other Blackstone Accounts and their portfolio entities may engage in permissible political activities with the intent of furthering our or their business interests or otherwise.

We, Other Blackstone Accounts and their portfolio entities may, in the ordinary course of our or their respective businesses, make political contributions to elected officials, candidates for elected office or political organizations, hire lobbyists or engage in other permissible political activities with the intent of furthering our or their business interests or otherwise. In certain circumstances, there may be initiatives where such activities are coordinated by Blackstone for the benefit of us, Other Blackstone Accounts and/or their portfolio entities. The interests advanced by a portfolio entity through such activities may, in certain circumstances, not align with or be adverse to our interests, the interests of our stockholders or the interests of Other Blackstone Accounts or their other portfolio entities. The costs of such activities may be allocated among us, Other Blackstone Accounts and their portfolio entities (and borne indirectly by our stockholders). While the costs of such activities will typically be borne by the entity undertaking such activities, such activities may also directly or indirectly benefit us, Other Blackstone Accounts, their portfolio entities or Blackstone. There can be no assurance that any such activities will be successful in advancing our interests or the interests of an Other Blackstone Accounts or a portfolio entity or otherwise benefit such entities.

If we do not maintain our qualification as a REIT, we will be subject to tax as a regular corporation and could face a substantial tax liability.

We expect to continue to operate so as to qualify as a REIT under the Code. However, qualification as a REIT involves the application of highly technical and complex Code provisions for which only a limited number of judicial or administrative interpretations exist. Notwithstanding the availability of cure provisions in the Code, various compliance requirements could be failed, which could jeopardize our REIT status. Furthermore, new tax legislation, administrative guidance or court decisions, in each instance potentially with retroactive effect, could make it more difficult or impossible for us to qualify as a REIT. If we fail to qualify as a REIT in any tax year, then:

To maintain our REIT status, we may have to borrow funds on a short-term basis during unfavorable market conditions.

To qualify as a REIT, we generally must distribute annually to our stockholders a minimum of 90% of our net taxable income, determined without regard to the dividends-paid deduction and excluding net capital gains. We will be subject to regular corporate

income taxes on any undistributed REIT taxable income each year. Additionally, we will be subject to a 4% nondeductible excise tax on any amount by which distributions paid by us in any calendar year are less than the sum of 85% of our ordinary income, 95% of our capital gain net income and 100% of our undistributed income from previous years. Payments we make to our stockholders under our share repurchase plan will not be taken into account for purposes of these distribution requirements. If we do not have sufficient cash to make distributions necessary to preserve our REIT status for any year or to avoid taxation, we may be forced to borrow funds or sell assets even if the market conditions at that time are not favorable for these borrowings or sales. These options could increase our costs or reduce our equity.

Compliance with REIT requirements may cause us to forego otherwise attractive opportunities, which may hinder or delay our ability to meet our investment objectives and reduce your overall return.

To qualify as a REIT, we are required at all times to satisfy tests relating to, among other things, the sources of our income, the nature and diversification of our assets, the ownership of our stock and the amounts we distribute to our stockholders. Compliance with the REIT requirements may impair our ability to operate solely on the basis of maximizing profits. For example, we may be required to make distributions to stockholders at disadvantageous times or when we do not have funds readily available for distribution.

Compliance with REIT requirements may force us to liquidate or restructure otherwise attractive investments.

To qualify as a REIT, at the end of each calendar quarter, at least 75% of the value of our assets must consist of cash, cash items, government securities and qualified real estate assets. The remainder of our investments in securities (other than qualified real estate assets and government securities) generally cannot include more than 10% of the voting securities (other than securities that qualify for the straight debt safe harbor) of any one issuer or more than 10% of the value of the outstanding securities of more than any one issuer unless we and such issuer jointly elect for such issuer to be treated as a “taxable REIT subsidiary” under the Code. Debt will generally meet the “straight debt” safe harbor if the debt is a written unconditional promise to pay on demand or on a specified date a certain sum of money, the debt is not convertible, directly or indirectly, into stock, and the interest rate and the interest payment dates of the debt are not contingent on the profits, the borrower’s discretion, or similar factors. Additionally, no more than 5% of the value of our assets (other than government securities and qualified real estate assets) can consist of the securities of any one issuer, and no more than 20% of the value of our assets may be represented by securities of one or more taxable REIT subsidiaries. If we fail to comply with these requirements at the end of any calendar quarter, we must dispose of a portion of our assets within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions in order to avoid losing our REIT qualification and suffering adverse tax consequences. In order to satisfy these requirements and maintain our qualification as a REIT, we may be forced to liquidate assets from our portfolio or not make otherwise attractive investments. These actions could have the effect of reducing our income and amounts available for distribution to our stockholders.

Our charter does not permit any person or group to own more than 9.9% in value or number of shares, whichever is more restrictive, of our outstanding common stock or of our outstanding capital stock of all classes or series, and attempts to acquire our common stock or our capital stock of all other classes or series in excess of these 9.9% limits would not be effective without an exemption (prospectively or retroactively) from these limits by our board of directors.

For us to qualify as a REIT under the Code, not more than 50% of the value of our outstanding stock may be owned, directly or indirectly, by five or fewer individuals (including certain entities treated as individuals for this purpose) during the last half of a taxable year. For the purpose of assisting our qualification as a REIT for U.S. federal income tax purposes, among other purposes, our charter prohibits beneficial or constructive ownership by any person or group of more than 9.9%, in value or number of shares, whichever is more restrictive, of the outstanding shares of our outstanding common stock, or 9.9% in value or number of shares, whichever is more restrictive, of our outstanding capital stock of all classes or series, which we refer to as the “Ownership Limit.” The constructive ownership rules under the Code and our charter are complex and may cause shares of the outstanding common stock owned by a group of related persons to be deemed to be constructively owned by one person. As a result, the acquisition of less than 9.9% of our outstanding common stock or our capital stock by a person could cause another person to constructively own in excess of 9.9% of our outstanding common stock or our capital stock, respectively, and thus violate the Ownership Limit. There can be no assurance that our board of directors, as permitted in the charter, will not decrease this Ownership Limit in the future. Any attempt to own or transfer shares of our common stock or capital stock in excess of the Ownership Limit without the consent of our board of directors will result either in the shares in excess of the limit being transferred by operation of our charter to a charitable trust, and the person who attempted to acquire such excess shares not having any rights in such excess shares, or in the transfer being void.

The Ownership Limit may have the effect of precluding a change in control of us by a third party, even if such change in control would be in the best interests of our stockholders or would result in receipt of a premium to the price of our common stock (and even if such change in control would not reasonably jeopardize our REIT status). The exemptions to the ownership limit granted to date may limit our board of directors’ power to increase the ownership limit or grant further exemptions in the future.

Non-U.S. holders may be subject to U.S. federal income tax upon their disposition of shares of our common stock or upon their receipt of certain distributions from us.

In addition to any potential withholding tax on ordinary dividends, a non-U.S. holder (as such term is defined under “Material U.S. Federal Income Tax Considerations—Taxation of U.S. Holders of Our Common Stock” in the Prospectus), other than a “qualified shareholder” or a “qualified foreign pension fund,” that disposes of a “U.S. real property interest” (“USRPI”) (which includes shares of stock of a U.S. corporation whose assets consist principally of USRPIs), is generally subject to U.S. federal income tax under the Foreign Investment in Real Property Tax Act of 1980, as amended (“FIRPTA”), on the amount received from such disposition. Such tax does not apply, however, to the disposition of stock in a REIT that is “domestically controlled.” Generally, a REIT is domestically controlled if less than 50% of its stock, by value, has been owned directly or indirectly by non-U.S. persons during a continuous five-year period ending on the date of disposition or, if shorter, during the entire period of the REIT’s existence. We cannot assure you that we will qualify as a domestically controlled REIT. If we were to fail to so qualify, amounts received by a non-U.S. holder on certain dispositions of shares of our common stock (including a redemption) would be subject to tax under FIRPTA, unless (i) our shares of common stock were regularly traded on an established securities market and (ii) the non-U.S. holder did not, at any time during a specified testing period, hold more than 10% of our common stock. See “Material U.S. Federal Income Tax Considerations—Taxation of Non-U.S. Holders of Our Common Stock—Sales of Our Common Stock” in the Prospectus.

A non-U.S. holder other than a “qualified shareholder” or a “qualified foreign pension fund,” that receives a distribution from a REIT that is attributable to gains from the disposition of a USRPI as described above, including in connection with a repurchase of our common stock, is generally subject to U.S. federal income tax under FIRPTA to the extent such distribution is attributable to gains from such disposition, regardless of whether the difference between the fair market value and the tax basis of the USRPI giving rise to such gains is attributable to periods prior to or during such non-U.S. holder’s ownership of our common stock. In addition, a repurchase of our common stock, to the extent not treated as a sale or exchange, may be subject to withholding as an ordinary dividend. See “Material U.S. Federal Income Tax Considerations – Taxation of Non-U.S. Holders of Our Common Stock – Distributions, and – Repurchases of our Common Stock” in the Prospectus.

We seek to act in the best interests of the Company as a whole and not in consideration of the particular tax consequences to any specific holder of our stock. Potential non-U.S. holders should inform themselves as to the U.S. tax consequences, and the tax consequences within the countries of their citizenship, residence, domicile, and place of business, with respect to the purchase, ownership and disposition of shares of our common stock.

Investments outside the United States may subject us to additional taxes and could present additional complications to our ability to satisfy the REIT qualification requirements.

Non-U.S. investments may subject us to various non-U.S. tax liabilities, including withholding taxes. In addition, operating in functional currencies other than the U.S. dollar and in environments in which real estate transactions are typically structured differently than they are in the United States or are subject to different legal rules may present complications to our ability to structure non-U.S. investments in a manner that enables us to satisfy the REIT qualification requirements.

We may incur tax liabilities that would reduce our cash available for distribution to you.

Even if we qualify and maintain our status as a REIT, we may become subject to U.S. federal income taxes and related state and local taxes. For example, net income from the sale of properties that are “dealer” properties sold by a REIT (a “prohibited transaction” under the Code) will be subject to a 100% tax. We may not make sufficient distributions to avoid excise taxes applicable to REITs. Similarly, if we were to fail an income test (and did not lose our REIT status because such failure was due to reasonable cause and not willful neglect) we would be subject to tax on the income that does not meet the income test requirements. We also may decide to retain net capital gain we earn from the sale or other disposition of our investments and pay income tax directly on such income. In that event, our stockholders would be treated as if they earned that income and paid the tax on it directly. However, stockholders that are tax-exempt, such as charities or qualified pension plans, would have no benefit from their deemed payment of such tax liability unless they file U.S. federal income tax returns and thereon seek a refund of such tax. We also may be subject to state and local taxes on our income or property, including franchise, payroll, mortgage recording and transfer taxes, either directly or at the level of the other companies through which we indirectly own our assets, such as our taxable REIT subsidiaries, which are subject to full U.S. federal, state, local and foreign corporate-level income taxes. Any taxes we pay directly or indirectly will reduce our cash available for distribution to you.

Our board of directors is authorized to revoke our REIT election without stockholder approval, which may cause adverse consequences to our stockholders.

Our charter authorizes our board of directors to revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that changes to U.S. federal income tax laws and regulations or other considerations mean it is no longer in our best interests to qualify as a REIT. Our board of directors has fiduciary duties to us and our stockholders and could only cause such changes in our tax treatment if it determines in good faith that such changes are in our best interests and in the best interests of our stockholders. In this event, we would become subject to U.S. federal income tax on our taxable income and we would no longer be required to distribute most of our net income to our stockholders, which may cause a reduction in the total return to our stockholders.

You may have current tax liability on distributions you elect to reinvest in our common stock.

If you participate in our distribution reinvestment plan, you will be deemed to have received, and for U.S. federal income tax purposes will be taxed on, the amount reinvested in shares of our common stock to the extent the amount reinvested was not a tax-free return of capital. Therefore, unless you are a tax-exempt entity, you may be forced to use funds from other sources to pay your tax liability on the reinvested dividends.

Generally, ordinary dividends payable by REITs do not qualify for reduced U.S. federal income tax rates.

Currently, the maximum tax rate applicable to qualified dividend income payable to certain non-corporate U.S. stockholders is 20%. Dividends payable by REITs, however, generally are not eligible for the reduced rate. Although this does not adversely affect the taxation of REITs or dividends payable by REITs, the more favorable rates applicable to regular corporate qualified dividends could cause certain non-corporate investors to perceive investments in REITs to be relatively less attractive than investments in the stocks of non-REIT corporations that pay dividends, which could adversely affect the value of the shares of REITs, including our common stock. However, under the Tax Cuts and Jobs Act of 2017, commencing with taxable years beginning on or after January 1, 2018 and continuing through 2025, individual taxpayers may be entitled to claim a deduction in determining their taxable income of 20% of ordinary REIT dividends (dividends other than capital gain dividends and dividends attributable to certain qualified dividend income received by us), which temporarily reduces the effective tax rate on such dividends. See “Material U.S. Federal Income Tax Considerations—Taxation of U.S. Holders of Our Common Stock—Distributions Generally” in the Prospectus. You are urged to consult with your tax advisor regarding the effect of this change on your effective tax rate with respect to REIT dividends.

We may be subject to adverse legislative or regulatory tax changes that could increase our tax liability, reduce our operating flexibility and reduce the price of our common stock.

In recent years, numerous legislative, judicial and administrative changes have been made in the provisions of U.S. federal income tax laws applicable to investments similar to an investment in shares of our common stock. Additional changes to the tax laws are likely to continue to occur, and we cannot assure you that any such changes will not adversely affect the taxation of our stockholders. Any such changes could have an adverse effect on an investment in our shares or on the market value or the resale potential of our assets. You are urged to consult with your tax advisor with respect to the impact of the recent legislation on your investment in our shares and the status of legislative, regulatory or administrative developments and proposals and their potential effect on an investment in our shares. Although REITs generally receive certain tax advantages compared to entities taxed as regular corporations, it is possible that future legislation would result in a REIT having fewer tax advantages, and it could become more advantageous for a company that invests in real estate to elect to be treated for U.S. federal income tax purposes as a corporation. As a result, our charter authorizes our board of directors to revoke or otherwise terminate our REIT election, without the approval of our stockholders, if it determines that changes to U.S. federal income tax laws and regulations or other considerations mean it is no longer in our best interests to qualify as a REIT. The impact of tax reform on an investment in our shares is uncertain. Prospective investors should consult their own tax advisors regarding changes in tax laws.

The failure of a mezzanine loan to qualify as a real estate asset could adversely affect our ability to qualify as a REIT.

We may acquire mezzanine loans, for which the IRS has provided a safe harbor but not rules of substantive law. Pursuant to the safe harbor, if a mezzanine loan meets certain requirements, it will be treated by the IRS as a real estate asset for purposes of the REIT asset tests, and interest derived from the mezzanine loan will be treated as qualifying mortgage interest for purposes of the REIT 75% income test. We may acquire mezzanine loans that do not meet all of the requirements of this safe harbor. In the event we own a mezzanine loan that does not meet the safe harbor, the IRS could challenge such loan’s treatment as a real estate asset for purposes of the REIT asset and income tests and, if such a challenge were sustained, we could fail to qualify as a REIT.

If our Operating Partnership failed to qualify as a partnership or is not otherwise disregarded for U.S. federal income tax purposes, we would cease to qualify as a REIT.

If the IRS were to successfully challenge the status of our Operating Partnership as a partnership or disregarded entity for U.S. federal income tax purposes, it would be taxable as a corporation. In the event that this occurs, it would reduce the amount of distributions that our Operating Partnership could make to us. This would also result in our failing to qualify as a REIT and becoming subject to a corporate-level tax on our income, which would substantially reduce our cash available to pay distributions and the yield on your investment.

If the fiduciary of an employee benefit plan subject to the Employee Retirement Income Security Act of 1974, as amended, or ERISA, fails to meet the fiduciary and other standards under ERISA, the Code or common law as a result of an investment in our stock, the fiduciary could be subject to civil penalties.

There are special considerations that apply to investing in our shares on behalf of a trust, pension, profit sharing or 401(k) plans, health or welfare plans, trusts, individual retirement accounts, or IRAs, or Keogh plans. If you are investing the assets of any of the entities identified in the prior sentence in our common stock, you should satisfy yourself that:

• the investment is consistent with your fiduciary obligations under applicable law, including common law, ERISA and the Code;

• the investment is made in accordance with the documents and instruments governing the trust, plan or IRA, including a plan’s investment policy;

• the investment satisfies the prudence and diversification requirements of Sections 404(a)(1)(B) and 404(a)(1)(C) of ERISA and other applicable provisions of ERISA and the Code;

• the investment will not produce “unrelated business taxable income” for the plan or IRA;

• our stockholders will be able to value the assets of the plan annually in accordance with ERISA requirements and applicable provisions of the plan or IRA; and

• the investment will not constitute a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code.

Failure to satisfy the fiduciary standards of conduct and other applicable requirements of ERISA, the Code, or other applicable statutory or common law may result in the imposition of civil penalties, and can subject the fiduciary to equitable remedies. In addition, if an investment in our shares constitutes a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code, the fiduciary that authorized or directed the investment may be subject to the imposition of excise taxes with respect to the amount invested.

If our assets at any time are deemed to constitute “plan assets” under ERISA, that may lead to the rescission of certain transactions, tax or fiduciary liability and our being held in violation of certain ERISA and Code requirements.

Stockholders subject to ERISA should consult their own advisors as to the effect of ERISA on an investment in the shares. As discussed under “Certain ERISA Considerations,” if our assets are deemed to constitute “plan assets” of stockholders that are Covered Plans (as defined below) (i) certain transactions that we might enter into in the ordinary course of our business might have to be rescinded and may give rise to certain excise taxes and fiduciary liability under Title I of ERISA and/or Section 4975 of the Code; (ii) our management, as well as various providers of fiduciary or other services to us (including the Adviser), and any other parties with authority or control with respect to us or our assets, may be considered fiduciaries or otherwise parties in interest or disqualified persons for purposes of the fiduciary responsibility and prohibited transaction provisions of Title I of ERISA and Section 4975 of the Code; and (iii) the fiduciaries of stockholders that are Covered Plans would not be protected from “co-fiduciary liability” resulting from our decisions and could be in violation of certain ERISA requirements.

Accordingly, prospective investors that are (i) “employee benefit plans” (within the meaning of Section 3(3) of ERISA), which are subject to Title I of ERISA; (ii) “plans” defined in Section 4975 of the Code, which are subject to Section 4975 of the Code (including “Keogh” plans and “individual retirement accounts”); or (iii) entities whose underlying assets are deemed to include plan assets within the meaning of Section 3(42) of ERISA and the regulations thereunder (e.g., an entity of which 25% or more of the total value of any class of equity interests is held by “benefit plan investors”) (each such plan, account and entity described in clauses (i), (ii) and (iii) we

refer to as “Covered Plans”) should consult with their own legal, tax, financial and other advisors prior to investing to review these implications in light of such investor’s particular circumstances. The sale of our common stock to any Covered Plan is in no respect a representation by us or any other person associated with the offering of our shares of common stock that such an investment meets all relevant legal requirements with respect to investments by plans generally or any particular plan, or that such an investment is appropriate for plans generally or any particular plan.

For an overview of our real estate investments, see Item 7 — “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Portfolio.”

Our principal executive and administrative offices are located in leased space at 345 Park Avenue, New York, New York 10154. We consider these facilities to be suitable and adequate for the management and operations of our business.

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of December 31, 2019, we were not involved in any material legal proceedings.

The Offering consists of four classes of shares of our common stock, Class S shares, Class I shares, Class T shares, and Class D shares. The share classes have different upfront selling commissions and dealer manager fees, and different ongoing stockholder servicing fees. Other than the differences in upfront selling commissions, dealer manager fees, and ongoing stockholder servicing fees, each class of common stock has the same economics and voting rights. Shares of our common stock are not listed for trading on a stock exchange or other securities market. The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2019:

For Class S shares sold in the Offering (other than as part of our distribution reinvestment plan), investors will pay upfront selling commissions of up to 3.5% of the transaction price. For Class T shares sold in the Offering (other than as part of our distribution reinvestment plan), investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. For Class D shares sold in the Offering (other than as part of our distribution reinvestment plan), investors will pay upfront selling commissions of up to 1.5% of the transaction price.

The Dealer Manager, a registered broker-dealer affiliated with the Adviser, serves as the dealer manager for the Offering and is entitled to receive stockholder servicing fees of 0.85% per annum of the aggregate NAV for Class S shares and Class T shares. For Class T shares such stockholder servicing fee includes an advisor stockholder servicing fee of 0.65% per annum, and a dealer stockholder servicing fee of 0.20% per annum, of the aggregate NAV for the Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares. For Class D shares, a stockholder servicing fee equal to 0.25% per annum of the aggregate NAV for the Class D shares.

The Dealer Manager anticipates that all or a portion of the upfront selling commissions, dealer manager and stockholder servicing fees will be retained by, or reallowed (paid) to, participating broker-dealers. Through December 31, 2019, the Dealer Manager had not retained any upfront selling commissions, dealer manager or stockholder servicing fees.

The purchase price per share for each class of our common stock will generally equal our prior month’s NAV per share, as determined monthly, plus applicable selling commissions and dealer manager fees. Our NAV for each class of shares is based on the net asset values of our investments (including real estate debt), the addition of any other assets (such as cash on hand) and the deduction of any liabilities, including the allocation/accrual of any performance participation, and any stockholder servicing fees applicable to such class of shares. Please refer to “Net Asset Value Calculation and Valuation Guidelines” in the Prospectus for the Current Offering for further details on how our NAV is determined.

The following table presents our monthly NAV per share for each of the four classes of shares since our inception through December 31, 2019:

	Class S Shares		Class I Shares		Class T Shares		Class D Shares
January 31, 2017	$	10.0000	$	10.0100	$	—	$	—
February 28, 2017		10.0200		10.0300		—		—
March 31, 2017		10.0200		10.0200		—		—
April 30, 2017		10.0455		10.0495		—		—
May 31, 2017		10.1828		10.1868		—		10.1604
June 30, 2017		10.2904		10.2791		10.1721		10.2648
July 31, 2017		10.3173		10.3092		10.2256		10.2603
August 31, 2017		10.4074		10.3997		10.2883		10.3536
September 30, 2017		10.4662		10.4579		10.3239		10.3763
October 31, 2017		10.5060		10.4973		10.3549		10.4114
November 30, 2017		10.5174		10.5094		10.3622		10.4141
December 31, 2017		10.5750		10.5671		10.4175		10.4712
January 31, 2018		10.6339		10.6236		10.4684		10.5217
February 28, 2018		10.6714		10.6602		10.4985		10.5539
March 31, 2018		10.6795		10.6646		10.5050		10.5602
April 30, 2018		10.7134		10.6985		10.5372		10.5928
May 31, 2018		10.7321		10.7158		10.5525		10.6087
June 30, 2018		10.7620		10.7446		10.5802		10.6315
July 31, 2018		10.7959		10.7773		10.6120		10.6633
August 31, 2018		10.8268		10.8064		10.6411		10.6907
September 30, 2018		10.8508		10.8290		10.6629		10.7133
October 31, 2018		10.8806		10.8579		10.6909		10.7417
November 30, 2018		10.8862		10.8625		10.6957		10.7459
December 31, 2018		10.8222		10.7984		10.6318		10.6820
January 31, 2019		10.8756		10.8524		10.6835		10.7359
February 28, 2019		10.9142		10.8906		10.7202		10.7724
March 31, 2019		10.9458		10.9218		10.7502		10.8019
April 30, 2019		10.9756		10.9480		10.7769		10.8304
May 31, 2019		11.0625		11.0350		10.8612		10.9146
June 30, 2019		11.1022		11.0755		10.9007		10.9481
July 31, 2019		11.2241		11.1969		11.0191		11.0660
August 31, 2019		11.3286		11.3030		11.1221		11.1661
September 30, 2019		11.4074		11.3816		11.2000		11.2407
October 31, 2019		11.4263		11.4008		11.2193		11.2588
November 30, 2019		11.4634		11.4379		11.2553		11.2945
December 31, 2019		11.4725		11.4473		11.2642		11.3022

We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our total NAV presented in the following tables includes the NAV of our Class S, Class I, Class T, and Class D common stock, as well as the partnership interests of BREIT OP held by parties other than the Company. The following table provides a breakdown of the major components of our NAV as of December 31, 2019 ($ and shares/units in thousands):

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of December 31, 2019 ($ and shares/units in thousands, except per share/unit data):

Set forth below are the weighted averages of the key assumptions in the discounted cash flow methodology used in the December 31, 2019 valuations, based on property types. Once we own more than one office property or net lease property we will include the key assumptions for the respective property type.

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:

The following table reconciles stockholders’ equity and BREIT OP Partners’ Capital per our consolidated balance sheet to our NAV ($ in thousands):

The following details the adjustments to reconcile stockholders’ equity under GAAP and total partners’ capital of BREIT OP to our NAV:

Beginning March 31, 2017, we declared monthly distributions for each class of our common stock, which are generally paid 20 days after month-end. We have paid distributions consecutively each month since such time. Each class of our common stock received the same aggregate gross distribution per share, which was $0.6363 per share for the year ended December 31, 2019. 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.

The following table details the net distribution for each of our share classes for the year ended December 31, 2019:

For the year ended December 31, 2019, we declared distributions in the amount of $433.6 million. The following table outlines the tax character of our distributions paid in 2019 as a percentage of total distributions. The distribution declared on December 31, 2019 was paid on January 22, 2020 and is excluded from the analysis below as it will be a 2020 tax event.

The following table details the net distribution for each of our share classes for the year ended December 31, 2018:

For the year ended December 31, 2018, we declared distributions in the amount of $173.9 million. The following table outlines the tax character of our distributions paid in 2018 as a percentage of total distributions. The distribution declared on December 31, 2018 was paid on January 22, 2019 and is excluded from the analysis below as it is a 2019 tax event.

The following table details the net distribution for each of our share classes for the year ended December 31, 2017:

For the year ended December 31, 2017, we declared distributions in the amount of $46.3 million. The following table outlines the tax character of our distributions paid in 2017 as a percentage of total distributions. The distribution declared on December 31, 2017 was paid on January 19, 2018 and is excluded from the analysis below as it is a 2018 tax event.

The following table summarizes our distributions declared during the years ended December 31, 2019, 2018 and 2017 ($ in thousands):

Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution

We believe funds from operations (“FFO”) is a meaningful supplemental non-GAAP operating metric. Our consolidated financial statements are presented under historical cost accounting which, among other things, requires depreciation of real estate investments to be calculated on a straight-line basis. As a result, our operating results imply that the value of our real estate investments will decrease evenly over a set time period. However, we believe that the value of real estate investments will fluctuate over time based on market conditions and as such, depreciation under historical cost accounting may be less informative. FFO is a standard REIT industry metric defined by the National Associational of Real Estate Investment Trusts (“NAREIT”). FFO, as defined by NAREIT and presented below, is calculated as net income or loss (computed in accordance with accounting principles generally accepted in the United States of America (“GAAP”)), excluding (i) gains or losses from sales of depreciable real property, (ii) impairment write-downs on depreciable real property, plus (iii) real estate-related depreciation and amortization, and (iv) similar adjustments for non-controlling interests.

We also believe that adjusted FFO (“AFFO”) is a meaningful non-GAAP supplemental disclosure of our operating results. AFFO further adjusts FFO in order for our operating results to reflect the specific characteristics of our business by adjusting for items we believe are not related to our core operations. Our adjustments to FFO to arrive at AFFO include removing the impact of (i) straight-line rental income and expense, (ii) amortization of above- and below-market lease intangibles, (iii) amortization of mortgage premium/discount, (iv) organization costs, (v) unrealized (gains) losses from changes in the fair value of real estate debt, (vi) amortization of restricted stock awards, (vii) non-cash performance participation allocation or other non-cash incentive compensation even if repurchased by us, (viii) gain or loss on involuntary conversion, and (ix) similar adjustments for non-controlling interests.

We also believe funds available for distribution (“FAD”) is an additional meaningful non-GAAP supplemental disclosure that provides useful information for considering our operating results and certain other items relative to the amount of our distributions by removing the impact of certain non-cash items from our operating results. FAD is calculated as AFFO excluding (i) realized gains (losses) on real estate debt and (ii) management fee paid in shares or BREIT OP units even if repurchased by us, and including deductions for (iii) recurring tenant improvements, leasing commissions, and other capital projects, (iv) stockholder servicing fees paid during the period, and (v) similar adjustments for non-controlling interests. FAD is not indicative of cash available to fund our cash needs and does not represent cash flows from operating activities in accordance with GAAP, as it excludes adjustments for working capital items and actual cash receipts from interest income recognized on real estate debt. Cash flows from operating activities in accordance with GAAP would generally be adjusted for such items. Furthermore, FAD is adjusted for stockholder servicing fees and recurring tenant improvements, leasing commissions, and other capital expenditures, which are not considered when determining cash flows from operating activities in accordance with GAAP.

The following table presents a reconciliation of FFO, AFFO and FAD to net loss attributable to BREIT stockholders ($ in thousands):

FFO, AFFO, and FAD should not be considered to be more relevant or accurate than the GAAP methodology in calculating net income (loss) or in evaluating our operating performance. In addition, FFO, AFFO, and FAD should not be considered as alternatives to net income (loss) as indications of our performance or as alternatives to cash flows from operating activities as indications of our liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO, AFFO, and FAD are not intended to be used as liquidity measures indicative of cash flow available to fund our cash needs, including our ability to make distributions to our stockholders.

During the year ended December 31, 2019, we sold equity securities that were not registered under the Securities Act as described below. As described in Note 11 to our consolidated financial statements, the Adviser is entitled to an annual management fee payable monthly in cash, shares of common stock, or BREIT OP Units, in each case at the Adviser's election. For the years ended December 31, 2019 and 2018, the Adviser elected to receive its management fees in Class I shares. We issued 8.4 million unregistered Class I shares to the Adviser in satisfaction of the 2019 management fees through November 2019. Additionally, we issued 1.2 million unregistered Class I shares to the Adviser in January 2020 in satisfaction of the December 2019 management fee.

The Special Limited Partner is also entitled to an annual performance participation allocation. As further described in Note 11 to the consolidated financial statements, the 2019 performance participation allocation became payable on December 31, 2019 and in January 2020, we issued approximately 11.7 million Class I units and 0.7 million Class B units in BREIT OP to the Special Limited Partner as payment for the 2019 performance participation allocation. Each Class I unit is exchangeable into one Class I share. Each issuance to the Adviser and the Special Limited Partner was made pursuant to Section 4(a)(2) of the Securities Act.

As further described in Note 11 to our consolidated financial statements, we issued incentive compensation awards to certain employees of affiliated portfolio company service providers that entitle them to receive an allocation of total return over a certain hurdle amount, as determined by us. The 2019 portfolio company incentive compensation awards of $14.7 million became payable on December 31, 2019 and in January 2020, we issued approximately 1.3 million Class I units in BREIT OP to certain employees of our affiliated portfolio companies.

We have also sold Class I shares at the same transaction price as for Class I shares registered under the Current Offering to feeder vehicles primarily created to hold Class I shares that offers interests in such feeder vehicles to non-U.S. persons. The offer and sale of Class I shares to the feeder vehicles was exempt from the registration provisions of the Securities Act by virtue of Section 4(a)(2) and Regulation S thereunder. During the year ended December 31, 2019, we received $2.4 billion from selling 210.7 million unregistered Class I shares to such vehicles. We intend to use the net proceeds from such sales for the purposes set forth in the prospectus for our Current Offering and in a manner within the investment guidelines approved by our board of directors, who serve as fiduciaries to our stockholders.

Under our share repurchase plan, to the extent we choose to repurchase shares in any particular month, we will only repurchase shares as of the opening of the last calendar day of that month (each such date, a “Repurchase Date”). Repurchases will be made at the transaction price in effect on the Repurchase Date (which will generally be equal to our prior month’s NAV per share), except that shares that have not been outstanding for at least one year will be repurchased at 95% of the transaction price (an “Early Repurchase Deduction”) subject to certain limited exceptions. Settlements of share repurchases will be made within three business days of the Repurchase Date. The Early Repurchase Deduction will not apply to shares acquired through our distribution reinvestment plan.

The total amount of aggregate repurchases of Class S, Class I, Class T, Class D, and Class B Units of BREIT OP is limited to no more than 2% of our aggregate NAV per month and no more than 5% of our aggregate NAV per calendar quarter.

Should repurchase requests, in our judgment, place an undue burden on our liquidity, adversely affect our operations or risk having an adverse impact on the company as a whole, or should we otherwise determine that investing our liquid assets in real properties or other illiquid investments rather than repurchasing our shares is in the best interests of the Company as a whole, then we may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. Further, our board of directors may modify, suspend or terminate our share repurchase plan if it deems such action to be in our best interest and the best interest of our stockholders. In the event that we determine to repurchase some but not all of the shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro rata basis.

If the transaction price for the applicable month is not made available by the tenth business day prior to the last business day of the month (or is changed after such date), then no repurchase requests will be accepted for such month and stockholders who wish to have their shares repurchased the following month must resubmit their repurchase requests.

During the three months ended December 31, 2019, we repurchased shares of our common stock in the following amounts, which represented all of the share repurchase requests received for the same period.

As of December 31, 2019, the Special Limited Partner held 23,788 Class I units in BREIT OP received for the performance participation allocation. The redemption of Class I units are not subject to our share repurchase plan as described above.

The following table sets forth our selected financial and operating data for the years ended December 31, 2019, 2018, and 2017 and for the period March 2, 2016 through December 31, 2016. The following selected consolidated historical financial data should be read in conjunction with the information set forth under Item 7. — “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the related notes thereto that appear on pages F-2 to F-35 of this report.

The following discussion should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this Annual Report on Form 10-K. In addition to historical data, this discussion contains forward-looking statements about our business, operations and financial performance based on current expectations that involve risks, uncertainties and assumptions. Our actual results may differ materially from those in this discussion as a result of various factors, including but not limited to those discussed in Part I Item 1A — “Risk Factors” in this Annual Report on Form 10-K.

BREIT invests primarily in stabilized income-oriented commercial real estate in the United States and, to a lesser extent, real estate debt. Our objective is to bring Blackstone’s leading real estate investment platform with an institutional fee structure and monthly liquidity features to individual investors. We are externally managed by BX REIT Advisors L.L.C. (the “Adviser”), a subsidiary of The Blackstone Group Inc. (“Blackstone”). We are the sole general partner of BREIT Operating Partnership L.P. (“BREIT OP”), a Delaware limited partnership, and we own substantially all of our assets through BREIT OP. We currently operate our business in eight reportable segments: Industrial, Multifamily, Net Lease, Hotel, Retail, Office and Other Properties, and real estate debt. Multifamily includes various forms of rental housing including apartments, student housing and manufactured housing. Other includes self-storage properties. Net Lease includes the real estate assets of The Bellagio Las Vegas (“Bellagio”).

BREIT is a non-exchange traded, perpetual life real estate investment trust (“REIT”) that qualifies as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”) for U.S. federal income tax. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.

As of March 24, 2020, we had received net proceeds of $17.5 billion from selling an aggregate of 1,588,293,255 shares of our common stock (consisting of 643,054,511 Class S shares, 798,498,578 Class I shares, 46,710,253 Class T shares, and 100,029,913 Class D shares). We have contributed the net proceeds to BREIT OP in exchange for a corresponding number of Class S, Class I, Class T, and Class D units. BREIT OP has primarily used the net proceeds to make investments in real estate and real estate debt as further described below under “— Portfolio”.

The following chart outlines the allocation of our investments in real properties and real estate debt based on fair value as of December 31, 2019:

The following charts further describe the diversification of our investments in real properties based on fair value as of December 31, 2019:

As of December 31, 2019, we had acquired 1,054 properties resulting in a diversified portfolio of income producing assets primarily consisting of Multifamily and Industrial properties, and to a lesser extent Net Lease, Hotel, Retail, Office and Other properties, concentrated in growth markets across the U.S. The following table provides a summary of our portfolio as of December 31, 2019:

The following table provides information regarding our portfolio of real properties as of December 31, 2019:

Segment and Investment	Number of Properties		Location	Acquisition Date	Ownership Interest⁽¹⁾	Sq. Feet (in thousands)/ Units/Keys⁽²⁾	Occupancy Rate⁽³⁾
Industrial:
Stockton Industrial Park		1	Stockton, CA	Feb. 2017	100%	878 sq. ft.	86%
HS Industrial Portfolio		37	Various⁽⁴⁾	April 2017	100%	5,899 sq. ft.	95%
Fairfield Industrial Portfolio		11	Fairfield, NJ	Sept. 2017	100%	578 sq. ft.	100%
Southeast Industrial Portfolio		5	Various⁽⁵⁾	Nov. 2017	100%	1,927 sq. ft.	97%
Kraft Chicago Industrial Portfolio		3	Aurora, IL	Jan. 2018	100%	1,693 sq. ft.	100%
Canyon Industrial Portfolio		145	Various⁽⁶⁾	March 2018	100%	21,174 sq. ft.	95%
HP Cold Storage Industrial Portfolio		6	Various⁽⁷⁾	May 2018	100%	2,252 sq. ft.	100%
Meridian Industrial Portfolio		106	Various⁽⁸⁾	Nov. 2018	99%⁽⁸⁾	14,011 sq. ft.	93%
Stockton Distribution Center		1	Stockton, CA	Dec. 2018	100%	987 sq. ft.	100%
Summit Industrial Portfolio		8	Atlanta, GA	Dec. 2018	100%	631 sq. ft.	97%
4500 Westport Drive		1	Harrisburg, PA	Jan. 2019	100%	179 sq. ft.	100%
Morgan Savannah		1	Savannah, GA	April 2019	100%	357 sq. ft.	100%
Minneapolis Industrial Portfolio		34	Minneapolis, MN	April 2019	100%	2,460 sq. ft.	94%
Atlanta Industrial Portfolio		61	Atlanta, GA	May 2019	100%	3,779 sq. ft.	95%
D.C. Powered Shell Warehouse Portfolio		9	Ashburn & Manassas, VA	June 2019	90%	1,471 sq. ft.	100%
Patriot Park		2	Durham, NC	Sept. 2019	100%	323 sq. ft.	83%
Denali Industrial Portfolio		18	Various⁽⁹⁾	Sept. 2019	100%	4,098 sq. ft.	100%
Jupiter 12 Industrial Portfolio		316	Various⁽¹⁰⁾	Sept. 2019	100%	63,965 sq. ft.	94%
2201 Main Street		1	San Diego, CA	Oct. 2019	100%	260 sq. ft.	N/A
Total Industrial		766				126,922 sq. ft.

Multifamily:
Sonora Canyon Apartments		1	Mesa, AZ	Feb. 2017	100%	388 units	95%
TA Multifamily Portfolio		6	Various⁽¹¹⁾	April 2017	100%	2,514 units	95%
Emory Point		1	Atlanta, GA	May 2017	100%	750 units	97%
Nevada West Multifamily		3	Las Vegas, NV	May 2017	100%	972 units	94%
Mountain Gate & Trails Multifamily		2	Las Vegas, NV	June 2017	100%	539 units	94%
Elysian West Multifamily		1	Las Vegas, NV	July 2017	100%	466 units	93%
Harbor 5 Multifamily		5	Dallas, TX	Aug. 2017	100%	1,192 units	95%
Gilbert Multifamily		2	Gilbert, AZ	Sept. 2017	90%	748 units	96%
Domain & GreenVue Multifamily		2	Dallas, TX	Sept. 2017	100%	803 units	96%
ACG II Multifamily		4	Various⁽¹²⁾	Sept. 2017	94%	932 units	94%
Olympus Multifamily		3	Jacksonville, FL	Nov. 2017	95%	1,032 units	94%
Amberglen West Multifamily		1	Hillsboro, OR	Nov. 2017	100%	396 units	93%
Aston Multifamily Portfolio		20	Various⁽¹³⁾	Various⁽¹³⁾	90%	4,584 units	95%
Talavera and Flamingo Multifamily		2	Las Vegas, NV	Dec. 2017	100%	674 units	94%
Walden Pond & Montair Multifamily Portfolio		2	Everett, WA & Thornton, CO	Dec. 2017	95%	635 units	93%
Signature at Kendall Multifamily		1	Miami, FL	Dec. 2017	100%	546 units	96%
The Boulevard		1	Phoenix, AZ	April 2018	100%	294 units	96%
Blue Hills Multifamily		1	Boston, MA	May 2018	100%	472 units	95%
Wave Multifamily Portfolio		6	Various⁽¹⁴⁾	May 2018	100%	2,199 units	95%
ACG III Multifamily		2	Gresham, OR & Turlock, CA	May 2018	95%	475 units	92%
Carroll Florida Multifamily		2	Jacksonville & Orlando, FL	May 2018	100%	716 units	95%
Solis at Flamingo		1	Las Vegas, NV	June 2018	95%	524 units	94%
Velaire at Aspera		1	Phoenix, AZ	July 2018	100%	286 units	93%
Coyote Multifamily Portfolio		6	Phoenix, AZ	Aug. 2018	100%	1,752 units	94%
Avanti Apartments		1	Las Vegas, NV	Dec. 2018	100%	414 units	95%
Gilbert Heritage Apartments		1	Phoenix, AZ	Feb. 2019	90%	256 units	95%
Roman Multifamily Portfolio		14	Various⁽¹⁵⁾	Feb. 2019	100%	3,743 units	94%
Elevation Plaza Del Rio		1	Phoenix, AZ	April 2019	90%	333 units	93%
Courtney at Universal Multifamily		1	Orlando, FL	April 2019	100%	355 units	94%
Citymark Multifamily 2-Pack		2	Various⁽¹⁶⁾	April 2019	95%	608 units	94%
Tri-Cities Multifamily 2-Pack		2	Richland & Kennewick, WA	April 2019	95%	428 units	93%
Raider Multifamily Portfolio		4	Las Vegas, NV	Various⁽¹⁷⁾	100%	1,514 units	89%
Bridge II Multifamily Portfolio		6	Various⁽¹⁸⁾	Various⁽¹⁸⁾	100%	2,363 units	94%
Miami Doral 2-Pack		2	Miami, FL	May 2019	100%	720 units	95%
Davis Multifamily 2-Pack		2	Various⁽¹⁹⁾	May 2019	100%	454 units	96%
Slate Savannah		1	Savannah, GA	May 2019	90%	272 units	94%
Amara at MetroWest		1	Orlando, FL	May 2019	95%	411 units	93%
Colorado 3-Pack		3	Denver & Fort Collins, CO	May 2019	100%	855 units	96%
Edge Las Vegas		1	Las Vegas, NV	June 2019	95%	296 units	93%
ACG IV Multifamily		2	Various⁽²⁰⁾	June 2019	95%	606 units	93%
Perimeter Multifamily 3-Pack		3	Atlanta, GA	June 2019	100%	691 units	93%

Segment and Investment

Number of

Properties

Location

Acquisition Date

Ownership

Interest⁽¹⁾

Sq. Feet (in

thousands)/

Units/Keys⁽²⁾

Occupancy

Rate⁽³⁾

Anson at the Lakes

Charlotte, NC

June 2019

100%

694 units

93%

San Valiente Multifamily

Phoenix, AZ

July 2019

95%

604 units

89%

Edgewater at the Cove

Oregon City, OR

Aug. 2019

100%

244 units

91%

Haven 124

Denver, CO

Sept. 2019

100%

562 units

92%

Villages at McCullers Walk Multifamily

Raleigh, NC

Oct. 2019

100%

412 units

89%

Canopy at Citrus Park Multifamily

Largo, FL

Oct. 2019

90%

318 units

92%

Ridge Multifamily Portfolio

Las Vegas, NV

Oct. 2019

90%

1,220 units

94%

Charleston on 66th Multifamily

Tampa, FL

Nov. 2019

95%

258 units

92%

Evolve at Timber Creek Multifamily

Garner, NC

Nov. 2019

100%

304 units

65%

Solis at Towne Center Multifamily

Glendale, AZ

Nov. 2019

100%

240 units

96%

Arches at Hidden Creek Multifamily

Chandler, AZ

Nov. 2019

98%

432 units

97%

Terra Multifamily

Austin, TX

Dec. 2019

100%

372 units

90%

Arium Multifamily Portfolio

Various⁽²¹⁾

Dec. 2019

100%

1,684 units

94%

Highroads MH

Phoenix, AZ

April 2018

99%

265 units

94%

Evergreen Minari MH

Phoenix, AZ

June 2018

99%

115 units

97%

Southwest MH

Various⁽²²⁾

June 2018

99%

3,065 units

83%

Hidden Springs MH

Desert Hot Springs, CA

July 2018

99%

317 units

86%

SVPAC MH

Phoenix, AZ

July 2018

99%

234 units

95%

Royal Vegas MH

Las Vegas, NV

Oct. 2018

99%

176 units

68%

Riverest MH

Tavares, FL

Dec. 2018

99%

130 units

86%

Angler MH Portfolio

Phoenix, AZ

April 2019

99%

939 units

84%

Florida MH 4-Pack

Various⁽²³⁾

99%

795 units

83%

Impala MH

Phoenix & Chandler, AZ

July 2019

99%

336 units

95%

EdR Student Housing Portfolio

Various⁽²⁴⁾

Sept. 2018

95%

10,610 units

97%

Total Multifamily

199

62,534 units

Net Lease:

Bellagio

Las Vegas, NV

Nov. 2019

95%

8,507 sq. ft.

N/A

Total Net Lease

8,507 sq. ft.

Hotel:

Hyatt Place UC Davis

Davis, CA

Jan. 2017

100%

127 keys

81%

Hyatt Place San Jose Downtown

San Jose, CA

June 2017

100%

240 keys

79%

Florida Select-Service 4-Pack

Tampa & Orlando, FL

July 2017

100%

472 keys

80%

Hyatt House Downtown Atlanta

Atlanta, GA

Aug. 2017

100%

150 keys

79%

Boston/Worcester Select-Service 3-Pack

Boston & Worcester, MA

Oct. 2017

100%

374 keys

80%

Henderson Select-Service 2-Pack

Henderson, NV

May 2018

100%

228 keys

84%

Orlando Select-Service 2-Pack

Orlando, FL

May 2018

100%

254 keys

93%

Corporex Select Service Portfolio

Various⁽²⁵⁾

Aug. 2018

100%

601 keys

76%

JW Marriott San Antonio Hill Country Resort

San Antonio, TX

Aug. 2018

100%

1,002 keys

71%

Hampton Inn & Suites Federal Way

Seattle, WA

Oct. 2018

100%

142 keys

81%

Staybridge Suites Reno

Reno, NV

Nov. 2018

100%

94 keys

80%

Salt Lake City Select Service 3 Pack

Salt Lake City, UT

Nov. 2018

60%

454 keys

81%

Courtyard Kona

Kailua-Kona, HI

March 2019

100%

452 keys

N/A

Raven Select Service Portfolio

Various⁽²⁶⁾

June 2019

100%

2,555 keys

N/A

Urban 2-Pack

Chicago, IL & Arlington, VA

July 2019

100%

636 keys

N/A

Hyatt Regency Atlanta

Atlanta, GA

Sept. 2019

100%

1,260 keys

N/A

RHW Portfolio

Various⁽²⁷⁾

Nov. 2019

100%

923 keys

N/A

Total Hotel

9,964 keys

Retail:

Bakers Centre

Philadelphia, PA

March 2017

100%

237 sq. ft.

99%

Plaza Del Sol Retail

Burbank, CA

Oct. 2017

100%

166 sq. ft.

100%

Vista Center

Miami, FL

Aug. 2018

100%

91 sq. ft.

94%

El Paseo Simi Valley

Simi Valley, CA

June 2019

100%

109 sq. ft.

97%

Towne Center East

Signal Hill, CA

Sept. 2019

100%

163 sq. ft.

100%

Plaza Pacoima

Pacoima, CA

Oct. 2019

100%

204 sq. ft.

100%

Canarsie Plaza

Brooklyn, NY

Dec. 2019

100%

274 sq. ft.

98%

Total Retail

1,244 sq. ft.

Office:

EmeryTech Office

Emeryville, CA

Oct. 2019

100%

228 sq. ft.

95%

Total Office

228 sq. ft.

Other:

East Coast Storage Portfolio

Various⁽²⁸⁾

Aug. 2019

97%

1,347 sq. ft.

87%

Total Other

1,347 sq. ft.

Total Investments in Real Estate

1,054

Subsequent to December 31, 2019, we acquired an aggregate of $2.7 billion of real estate (not including the MGM Grand and Mandalay Bay transaction described in the 2019 Highlights section above) across eight separate transactions, exclusive of closing costs. The acquisitions were related to multifamily, industrial and retail properties.

As of December 31, 2019, our real estate debt consisted of 174 investments in CMBS, nine investments in RMBS, 12 corporate bond investments and eight loans. The following table details our investments in real estate debt as of December 31, 2019 ($ in thousands):


Number of Positions		Credit Rating⁽¹⁾	Collateral⁽²⁾	Weighted Average Coupon⁽³⁾	Weighted Average Maturity Date⁽⁴⁾	Face Amount/ Notional⁽⁵⁾		Cost Basis		Fair Value
CMBS - Floating:
	43	BB	Hospitality, Industrial, Multifamily, Office, Other, Diversified	L+2.82%	1/24/2025	$	996,720	$	994,189	$	997,022
	30	BBB	Hospitality, Industrial, Multifamily, Office, Other	L+2.29%	3/24/2025		746,053		743,664		745,510
	23	B	Hospitality, Industrial, Multifamily, Office	L+3.36%	12/8/2024		608,775		607,367		608,826
	9	A	Hospitality, Industrial, Office, Retail, Diversified	L+2.04%	11/14/2024		318,881		318,117		319,227
	1	AA	Office	L+4.25%	9/9/2020		8,257		8,332		8,277
	16	Other	Hospitality, Multifamily	L+2.62%	7/2/2025		228,394		227,887		228,090
	122								2,899,556		2,906,952
CMBS - Fixed:
	11	BB	Hospitality, Multifamily, Office, Diversified	3.8%	3/19/2028		297,379		283,944		282,977
	7	B	Hospitality, Multifamily, Office, Diversified	4.3%	1/27/2026		169,039		166,167		166,085
	14	BBB	Hospitality, Multifamily, Diversified	4.0%	1/22/2027		143,559		140,855		144,390
	11	Other	Hospitality, Multifamily, Office, Diversified	4.6%	11/7/2027		240,761		238,437		238,518
	43								829,403		831,970
Corporate Bonds:
	8	BB	Hospitality, Multifamily, Diversified	5.1%	4/15/2027		221,986		220,757		230,006
	4	B	Hospitality, Multifamily, Other	5.9%	6/29/2026		54,316		55,739		58,105
	12								276,496		288,111
CMBS - Zero Coupon:
	1	BB	Multifamily	N/A	4/8/2025		27,273		20,590		20,866
	3	Other	Multifamily	N/A	4/24/2027		208,817		106,629		115,161
	4								127,219		136,027
RMBS - Fixed:
	8	BB	Multifamily	4.0%	9/13/2028		25,528		25,534		25,482
	1	B	Multifamily	6.3%	5/16/2027		3,787		3,972		3,966
	9								29,506		29,448
CMBS - Interest Only:
	2	AAA	Multifamily	0.1%	6/12/2026		1,799,254		9,554		9,550
	1	BBB	Multifamily	0.1%	1/21/2028		225,803		1,372		1,371
	1	A	Multifamily	0.1%	5/19/2025		194,399		914		913
	1	Other	Multifamily	4.5%	12/17/2026		42,024		11,724		11,713
	5								23,564		23,547
	195		Total real estate securities						4,185,744		4,216,055
Term Loans:
	5	B	Hospitality, Industrial	L+3.71%	1/8/2025		73,952		73,364		72,605
	1	BB	Diversified	L+2.75%	5/15/2026		54,155		53,916		54,290
	1	Other	Multifamily	L+1.70%	2/6/2022		47,132		46,186		46,234
	7								173,466		173,129
Mezzanine Loans:
	1	Other	Hospitality	L+6.86%	12/15/2024		134,750		134,078		134,076
	8		Total real estate loans						307,544		307,205
	203		Total real estate debt					$	4,493,288	$	4,523,260

The following charts further describe the diversification of our real estate debt investments by credit rating and collateral type based on fair value as of December 31, 2019:

Subsequent to December 31, 2019, we purchased an aggregate of $482.1 million of real estate debt.

The following schedule details the expiring leases at our industrial, retail, office and net lease properties by annualized base rent and square footage as of December 31, 2019 ($ and square feet data in thousands). The table below excludes our multifamily and self-storage properties as substantially all leases at such properties expire within 12 months.

For details regarding our affiliate service providers, see Note 11 to our consolidated financial statements.

The following table sets forth information regarding our consolidated results of operations ($ in thousands):

Due to the significant amount of acquisitions of real estate and real estate debt we have made since December 31, 2018, our revenues and operating expenses for the years ended December 31, 2019 and 2018 are not comparable. However, certain properties in our portfolio were owned for the full years ended December 31, 2019 and 2018 and are further discussed below.

During the year ended December 31, 2019, general and administrative expenses increased $7.2 million compared to the year ended December 31, 2018, primarily due to various corporate level expenses related to the increased size of our portfolio.

During the year ended December 31, 2019, the management fee increased by $65.5 million compared to the year ended December 31, 2018. The increase was primarily due to the growth of our NAV of $8.3 billion from December 31, 2018 to December 31, 2019.

During the year ended December 31, 2019, the performance participation allocation increased $103.9 million compared to the year ended December 31, 2018. The increase was primarily due to the growth of our NAV and a higher total return than the year ended December 31, 2018. The performance participation allocation is measured annually and any amount earned by the Special Limited Partner becomes payable as of December 31 of the applicable year.

During the year ended December 31, 2019, depreciation and amortization increased $417.7 million compared to the corresponding period in 2018. The increase was driven by the growth in our portfolio, which increased from 474 properties as of December 31, 2018 to 1,054 properties as of December 31, 2019.

During the year ended December 31, 2019, income from real estate debt increased $157.7 million compared to the year ended December 31, 2018. The increase was primarily due to the growth of our portfolio of investments in real estate debt which increased from 102 positions as of December 31, 2018 to 203 positions as of December 31, 2019.

During the year ended December 31, 2019, we recorded $35.0 million of net gain from the dispositions of real estate related to the sales of three properties across three separate transactions. We did not sell any real estate in the corresponding periods in 2018.

During the year ended December 31, 2019, interest expense increased $254.3 million compared to the year ended December 31, 2018. The increase was primarily due to the growth in our portfolio of real estate and real estate debt and the related indebtedness of such investments.

Refer to Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the year ended December 31, 2018 for discussion of our consolidated results of operations for the year ended December 31, 2018 compared to the year ended December 31, 2017, which specific discussion is incorporated herein by reference.

We evaluate our consolidated results of operations on a same property basis, which allows us to analyze our property operating results excluding acquisitions during the periods under comparison. Properties in our portfolio are considered same property if they were owned for the full periods presented, otherwise they are considered non-same property. Recently developed properties that have not achieved stabilized occupancy (defined as 90% or greater for properties other than hotels) and properties held for sale are excluded from same property results and are considered non-same property. We do not consider our real estate debt segment to be same property.

For the years ended December 31, 2019 and 2018, our same property portfolio consisted of 39 multifamily, 53 industrial, 10 hotel, and two retail properties.

Same property operating results are measured by calculating same property net operating income (“NOI”). Same property NOI is a supplemental non-GAAP disclosure of our operating results that we believe is meaningful as it enables management to evaluate the impact of occupancy, rents, leasing activity, and other controllable property operating results at our real estate. We define same property NOI as operating revenues less operating expenses, which exclude (i) depreciation and amortization, (ii) interest expense and other non-property related revenue and expense items such as (a) general and administrative expenses, (b) management fee, (c) performance participation allocation, (d) affiliate incentive compensation awards, (e) income from real estate debt, (f) net gain on dispositions of real estate, and (g) interest income.

Our same property NOI may not be comparable to that of other REITs and should not be considered to be more relevant or accurate in evaluating our operating performance than the current GAAP methodology used in calculating net income (loss).

The following table reconciles GAAP net loss attributable to BREIT stockholders to same property NOI for the years ended December 31, 2019 and 2018 ($ in thousands):

The following table details the components of same property NOI for the years ended December 31, 2019 and 2018 ($ in thousands):

Same property rental revenue increased $6.5 million for the year ended December 31, 2019 compared to 2018. The increase was due to a $6.9 million increase in base rental revenue and a $0.7 million increase in tenant reimbursement income. Additionally, as a result of the adoption of Accounting Standards Update (“ASU”) 2016-02, Leases, and all related amendments (“ASU 2016-02”) $1.1 million

of bad debt expense was recorded as a component of same property rental revenue for the year ended December 31, 2019. For the year ended December 31, 2018, bad debt expense was recorded as a component of rental property operating expenses. For further detail on the adoption of ASU 2016-02 see Note 2 to the consolidated financial statements.

The following table details the changes in base rental revenue period over period ($ in thousands):

Same property hotel revenue increased $0.8 million for the year ended December 31, 2019 compared to the corresponding period in 2018 primarily due to an increase of $0.5 million at our hotel property located in downtown Atlanta, Georgia. The Hyatt House Downtown Atlanta experienced increased occupancy, ADR and RevPAR during the first quarter of 2019 as a result of increased demand primarily associated with the Super Bowl. The remaining increase in hotel revenue was due to an increase in ADR and RevPAR across the remaining hotel properties in our same property portfolio. ADR for the hotels in our same property portfolio increased to $161 from $160 while occupancy and RevPAR remained unchanged during the year ended December 31, 2019 compared to the corresponding period in 2018.

Same property other revenue decreased $1.9 million for the year ended December 31, 2019 compared to the corresponding period in 2018. The decrease in other revenue for the year ended December 31, 2019 was primarily a result of lower non-recurring lease related fees such as late fees and termination fees at our multifamily properties.

Same property rental property operating expenses decreased $2.1 million during the year ended December 31, 2019 compared to the corresponding period in 2018. The decrease in rental property operating expenses was primarily due to the presentation of bad debt expense as a component of rental revenue for the year ended December 31, 2019 as a result of the adoption of ASU 2016-02. During the year ended December 31, 2018, $4.0 million of bad debt expense was recorded as a component of rental property operating expense. The change in presentation of bad debt expense was partially offset by an increase in real estate taxes, insurance and repair and maintenance expenses at our multifamily and industrial properties.

Same property hotel operating expenses increased $0.8 million during the year ended December 31, 2019 compared to the corresponding period in 2018. The increase in hotel operating expenses was primarily the result of an increase in insurance and real estate taxes at certain hotels within our portfolio, along with an increase in general operating expenses associated with the overall increase in revenues.

Due to our substantial fundraising and continued deployment of the net proceeds raised into new property acquisitions, non-same property NOI is not comparable period over period. We expect the non-same property NOI variance period over period to continue as we raise more proceeds from selling shares of our common stock and invest in additional new property acquisitions.

Our primary needs for liquidity and capital resources are to fund our investments, make distributions to our stockholders, repurchase shares of our common stock pursuant to our share repurchase plan, operating expenses, capital expenditures and to pay debt service on our outstanding indebtedness we may incur. Our operating expenses include, among other things, fees and expenses related to managing our properties and other investments, the management fee we pay to the Adviser (to the extent the Adviser elects to receive the management fee in cash), the performance participation allocation that BREIT OP pays to the Special Limited Partner (to the extent the Special Limited Partner elects to receive the performance participation allocation in cash), and general corporate expenses. We do not have any office or personnel expenses as we do not have any employees.

Our cash needs for acquisitions and other investments will be funded primarily from the sale of shares of our common stock and through the assumption or incurrence of debt.

Our indebtedness includes loans secured by our properties, master repurchase agreements with Barclays Bank PLC (the “Barclays MRA”), Royal Bank of Canada (the “RBC MRA”), Citigroup Global Markets Inc. (the “Citi MRA”), Bank of America Merrill Lynch (the “BAML MRA”), Morgan Stanley Bank, N.A. (the “MS MRA”), MUFG Securities EMEA PLC (the “MUFG MRA”), and HSBC Bank USA, National Association (the “HSBC MRA”) secured by our investments in real estate debt, and unsecured lines of credit. The following is a summary of our indebtedness ($ in thousands):

Other potential future sources of capital include secured or unsecured financings from banks or other lenders and proceeds from the sale of assets. If necessary, we may use financings or other sources of capital in the event of unforeseen significant capital expenditures.

The Company is party to an unsecured line of credit with multiple banks. The line of credit expires on February 22, 2023. Interest under the line of credit is determined based on a one-month U.S. dollar-denominated LIBOR plus 2.50%. As of December 31, 2019, the capacity of the unsecured line of credit was $900 million. As of December 31, 2019, we had a $30 million letter of credit outstanding which reduced the available capacity of the unsecured line of credit to $870 million.

Subsequent to December 31, 2019, there was a global outbreak of a new strain of coronavirus, COVID-19 which continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving, and as cases of the virus have continued to be identified in additional countries, many countries have reacted by instituting quarantines, restrictions on travel, and limiting hours of operations of non-essential offices and retail centers. Such actions are creating disruption in global supply chains, and adversely impacting a number of industries, such as transportation, hospitality and entertainment. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of the novel coronavirus. Nevertheless, the novel coronavirus presents material uncertainty and risk with respect to the Company’s performance and financial results, such as the potential negative impact to occupancy at its properties, the potential closure of certain of its hotel assets, financing arrangements, increased costs of operations, decrease in values of its investments in Real Estate Debt, changes in law and/or regulation, and uncertainty regarding government and regulatory policy. The Company is unable to estimate the impact the novel coronavirus will have on its financial results at this time.

While the long-term impact of the coronavirus to our business is not yet known, we are well positioned from a liquidity perspective with $3.1 billion of immediate liquidity as of March 24, 2020, made up of $2.6 billion of undrawn line of credit capacity and $0.5 billion of cash on hand.

The following table provides a breakdown of the net change in our cash and cash equivalents and restricted cash ($ in thousands):

Cash flows provided by operating activities increased $348.2 million during the year ended December 31, 2019 compared to the corresponding period in 2018 due to increased cash flows from the operations of investments in real estate and income on our investments in real estate debt. Cash flows provided by operating activities increased $180.4 million during the year ended December 31, 2018 compared to the corresponding period in 2017 due to increased cash flows from the operations of investments in real estate and income on our investments in real estate debt.

Cash flows used in investing activities increased $9.5 billion during the year ended December 31, 2019 compared to the corresponding period in 2018 primarily due to an increase of $8.7 billion in the acquisition of real estate investments and $1.4 billion of real estate debt offset by an increase of $0.5 billion in proceeds from the sale or settlement of real estate debt. Cash flows used in investing activities increased $4.2 billion during the year ended December 31, 2018 compared to the corresponding period in 2017 primarily due to an increase of $3.6 billion in the acquisition of real estate investments and $0.6 billion of real estate debt.

Cash flows provided by financing activities increased $9.8 billion during the year ended December 31, 2019 compared to the corresponding period in 2018 primarily due to a net increase of $4.9 billion in borrowings, an increase of $4.7 billion in proceeds from the issuance of our common stock. Cash flows provided by financing activities increased $4.0 billion during the year ended December 31, 2018 compared to the corresponding period in 2017 primarily due to a net increase of $3.0 billion in borrowings and an increase of $1.0 billion in proceeds from the issuance of our common stock.

The preparation of the financial statements in accordance with 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.

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.

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.

The following table aggregates our contractual obligations and commitments with payments due subsequent to December 31, 2019 ($ in thousands):

We are exposed to interest rate risk with respect to our variable-rate indebtedness, whereas an increase in interest rates would directly result in higher interest expense costs. We seek to manage our exposure to interest rate risk by utilizing a mix of fixed and floating rate financings with staggered maturities and through interest rate protection agreements to fix or cap a portion of our variable rate debt. As of December 31, 2019, the outstanding principal balance of our variable rate indebtedness was $7.5 billion and consisted of mortgage notes, term loans, secured and unsecured revolving credit facilities and repurchase agreements.

Certain of our mortgage notes, term loans, secured and unsecured revolving credit facilities and repurchase agreements are variable rate and indexed to one-month U.S. Dollar denominated LIBOR, six month U.S. Dollar denominated LIBOR, three-month GBP denominated LIBOR, three month Euro denominated LIBOR or six month Euro denominated LIBOR (collectively, the “Reference Rates”). For the year ended December 31, 2019, a 10% increase in the Reference Rates would have resulted in increased interest expense of $11.0 million.

As of December 31, 2019, we held $4.5 billion of real estate debt securities. Our investments in real estate debt securities investments are primarily floating-rate and indexed to one of the Reference Rates and as such, exposed to interest rate risk. Our net income will increase or decrease depending on interest rate movements. While we cannot predict factors which may or may not affect interest rates, during the year ended December 31, 2019, a 10% increase or decrease in the Reference Rates would have resulted in an increase or decrease to income from real estate debt securities of $7.7 million.

We may also be exposed to market risk with respect to our investments in real estate debt securities due to changes in the fair value of our investments. We seek to manage our exposure to market risk with respect to our investments in real estate debt securities by making investments in securities backed by different types of collateral and varying credit ratings. The fair value of our investments may fluctuate, thus the amount we will realize upon any sale of our investments in real estate debt securities is unknown. As of December 31, 2019, the fair value at which we may sell our investments in real estate debt securities is not known, but a 10% change in the fair value of our investments in real estate debt securities may result in an unrealized gain or loss of $452.3 million.

For the financial statements required by this item and the reports of the independent accountants thereon required by Item 14(a)(2). See the accompanying Consolidated Financial Statements beginning on page F-1. The supplementary financial data required by Item 302 of Regulation S-K appears in Note 15 to the consolidated financial statements.

The Company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in the Company’s reports under the Exchange Act is recorded, processed, and summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to the Company’s management, including its Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. An evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this annual report on Form 10-K was made under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is timely recorded, processed, summarized and reported and (b) include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that occurred during our most recent quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Management of Blackstone Real Estate Income Trust, Inc., is responsible for establishing and maintaining adequate internal control over financial reporting. Blackstone Real Estate Income Trust’s internal control over financial reporting is a process designed under the supervision of its Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of its consolidated financial statements for external reporting purposes in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles”).

Blackstone Real Estate Income Trust’s internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect transactions and dispositions of assets of the Company; provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of the Company’s management and directors; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on its consolidated financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an assessment of the effectiveness of Blackstone Real Estate Income Trust’s internal control over financial reporting as of December 31, 2019, based on the framework established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission in 2013. Based on this assessment, management has determined that Blackstone Real Estate Income Trust’s internal control over financial reporting as of December 31, 2019, was effective.

The information required by this item is incorporated by reference to the Company’s definitive proxy statement to be filed not later than April 29, 2020 with the SEC pursuant to Regulation 14A under the Exchange Act.

The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within

the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

To the Stockholders and the Board of Directors of Blackstone Real Estate Income Trust, Inc.

We have audited the accompanying consolidated balance sheets of Blackstone Real Estate Income Trust, Inc. and subsidiaries (the “Company”) as of December 31, 2019 and 2018, the related consolidated statements of operations, changes in equity and cash flows, for each of the three years in the period ended December 31, 2019, and the related notes and the schedule listed in the Index at Item 15 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2019, in conformity with accounting principles generally accepted in the United States of America.

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

																						Non-controlling			Non-controlling
	Par Value															Accumulated						Interests			Interests
	Common			Common			Common			Common			Additional			Deficit and			Total			attributable			attributable
	Stock			Stock			Stock			Stock			Paid-in			Cumulative			Stockholders'			to third party			to BREIT OP			Total
	Class S			Class I			Class T			Class D			Capital			Distributions			Equity			joint ventures			unitholders			Equity
Balance at December 31, 2016	$	—		$	—		$	—		$	—		$	200		$	(115	)	$	85		$	—		$	—		$	85

Common stock issued	$	1,283		$	302		$	56		$	40		$	1,724,274		$	—		$	1,725,955		$	—		$	—		$	1,725,955
Offering costs		—			—			—			—			(132,691	)		—			(132,691	)		—			—			(132,691	)
Distribution reinvestment		18			6			—			—			25,503			—			25,527			—			—			25,527
Common stock repurchased		—			(1	)		—			—			(668	)		—			(669	)		—			—			(669	)
Amortization of restricted stock grants		—			—			—			—			102			—			102			—			—			102
Net loss		—			—			—			—			—			(86,258	)		(86,258	)		(1,292	)		—			(87,550	)
Distributions declared on common stock ($0.4782 per share)		—			—			—			—			—			(46,260	)		(46,260	)		—			—			(46,260	)
Contributions from non-controlling interests		—			—			—			—			—			—			—			25,336			—			25,336
Distributions to non-controlling interests		—			—			—			—			—			—			—			(196	)					(196	)
Balance at December 31, 2017	$	1,301		$	307		$	56		$	40		$	1,616,720		$	(132,633	)	$	1,485,791		$	23,848		$	—		$	1,509,639

Common stock issued	$	1,428		$	778		$	174		$	261		$	2,846,022		$	—		$	2,848,663		$	—		$	—		$	2,848,663
Offering costs		—			—			—			—			(178,833	)		—			(178,833	)		—			—			(178,833	)
Distribution reinvestment		63			24			4			4			101,890			—			101,985			—			—			101,985
Common stock/units repurchased		(22	)		(28	)		(1	)		(1	)		(56,375	)		—			(56,427	)		—			—			(56,427	)
Amortization of restricted stock grants		—			2			—			—			212			—			214			—			—			214
Net loss ($1,035 allocated to redeemable non-controlling interests)		—			—			—			—			—			(281,056	)		(281,056	)		(6,188	)		(3,186	)		(290,430	)
Distributions declared on common stock ($0.6286 per share)		—			—			—			—			—			(173,859	)		(173,859	)		—			—			(173,859	)
Contributions from non-controlling interests		—			—			—			—			—			—			—			47,615			99,978			147,593
Acquired non-controlling interests		—			—			—			—			—			—			—			12,802			—			12,802
Distributions to non-controlling interests		—			—			—			—			—			—			—			(2,485	)		(1,716	)		(4,201	)
Allocation to redeemable non-controlling interests		—			—			—			—			(2,192	)		—			(2,192	)		—			—			(2,192	)
Balance at December 31, 2018	$	2,770		$	1,083		$	233		$	304		$	4,327,444		$	(587,548	)	$	3,744,286		$	75,592		$	95,076		$	3,914,954

Common stock issued	$	2,485		$	3,712		$	167		$	531		$	7,702,275		$	—		$	7,709,170		$	—		$	—		$	7,709,170
Offering costs		—			—			—			—			(315,523	)		—			(315,523	)		—			—			(315,523	)
Distribution reinvestment		121			74			9			16			245,115			—			245,335			—			—			245,335
Common stock/units repurchased		(68	)		(130	)		(11	)		(4	)		(236,156	)		—			(236,369	)		—			(718	)		(237,087	)
Amortization of restricted stock grants		—			4			—			—			396			—			400			—			2,000			2,400
Net loss ($1,663 allocated to redeemable non-controlling interests)		—			—			—			—			—			(401,771	)		(401,771	)		(4,416	)		(6,393	)		(412,580	)
Distributions declared on common stock ($0.6363 per share)		—			—			—			—			—			(433,566	)		(433,566	)		—			—			(433,566	)
Contributions from non-controlling interests		—			—			—			—			—			—			—			109,196			69,761			178,957
Distributions to non-controlling interests		—			—			—			—			—			—			—			(22,577	)		(8,005	)		(30,582	)
Allocation to redeemable non-controlling interests		—			—			—			—			(6,830	)		—			(6,830	)		—			—			(6,830	)
Balance at December 31, 2019	$	5,308		$	4,743		$	398		$	847		$	11,716,721		$	(1,422,885	)	$	10,305,132		$	157,795		$	151,721		$	10,614,648

	For the Year Ended December 31,
	2019			2018			2017
Cash flows from operating activities:
Net loss	$	(414,243	)	$	(291,465	)	$	(87,550	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Management fee		108,115			42,659			8,867
Performance participation allocation		141,396			37,484			16,974
Depreciation and amortization		824,039			406,295			121,793
Net gain on dispositions of real estate		(35,035	)		—			—
Unrealized gain (loss) on changes in fair value of financial instruments		(47,651	)		24,746			(2,366	)
Other items		(8,812	)		5,495			228
Change in assets and liabilities:
(Increase) / decrease in other assets		(117,527	)		(67,540	)		(19,002	)
Increase / (decrease) in due to affiliates		3,893			2,099			3,833
Increase / (decrease) in accounts payable, accrued expenses, and other liabilities		146,752			92,909			29,508
Net cash provided by operating activities		600,927			252,682			72,285
Cash flows from investing activities:
Acquisitions of real estate		(15,669,598	)		(7,005,983	)		(3,393,674	)
Capital improvements to real estate		(199,768	)		(102,273	)		(9,953	)
Proceeds from dispositions of real estate		79,118			—			—
Pre-acquisition costs		—			(8,331	)		(5,166	)
Purchase of real estate debt		(2,944,340	)		(1,561,772	)		(930,147	)
Proceeds from sale or settlement of real estate debt		739,591			193,932			16,596
Net cash used in investing activities		(17,994,997	)		(8,484,427	)		(4,322,344	)
Cash flows from financing activities:
Proceeds from issuance of common stock		7,431,641			2,701,651			1,718,992
Offering costs paid		(77,156	)		(44,066	)		(22,293	)
Subscriptions received in advance		796,729			166,542			107,576
Repurchase of common stock		(75,279	)		(49,466	)		(669	)
Repurchase of management fee shares		(114,843	)		—			—
Redemption of redeemable non-controlling interest		(35,435	)		(8,400	)		—
Redemption of affiliate service provider incentive compensation awards		(718	)		—			—
Borrowings from mortgage notes, term loans, and secured revolving credit facilities		17,399,268			7,318,059			2,174,030
Repayments from mortgage notes, term loans, and secured revolving credit facilities		(8,328,912	)		(2,767,093	)		(247,570	)
Borrowings under repurchase agreements		1,831,464			1,156,189			695,419
Settlement of repurchase agreements		(453,050	)		(125,314	)		(12,571	)
Borrowings from affiliate line of credit		2,105,500			1,239,400			1,089,350
Repayments on affiliate line of credit		(2,105,500	)		(1,244,650	)		(1,084,100	)
Borrowings from unsecured revolving credit facilities		240,000			—			—
Repayments on unsecured revolving credit facilities		(240,000	)		—			—
Payment of deferred financing costs		(116,126	)		(46,634	)		(22,949	)
Contributions from non-controlling interests		132,852			147,593			25,586
Distributions to non-controlling interests		(39,607	)		(4,413	)		(196	)
Distributions		(153,669	)		(58,769	)		(13,017	)
Net cash provided by financing activities		18,197,159			8,380,629			4,407,588
Net change in cash and cash equivalents and restricted cash		803,089			148,884			157,529
Cash and cash equivalents and restricted cash, beginning of year		306,613			157,729			200
Cash and cash equivalents and restricted cash, end of year	$	1,109,702		$	306,613		$	157,729
Reconciliation of cash and cash equivalents and restricted cash to the consolidated balance sheets:
Cash and cash equivalents	$	204,269		$	68,089		$	31,166
Restricted cash		905,433			238,524			126,563
Total cash and cash equivalents and restricted cash	$	1,109,702		$	306,613		$	157,729
Supplemental disclosures:
Interest paid	$	461,354		$	208,042		$	27,073

Blackstone Real Estate Income Trust, Inc. (“BREIT” or the “Company”) invests primarily in stabilized income-oriented commercial real estate in the United States and, to a lesser extent, in real estate debt. The Company is the sole general partner of BREIT Operating Partnership, L.P., a Delaware limited partnership (“BREIT OP”). BREIT Special Limited Partner L.P. (the “Special Limited Partner”), a wholly-owned subsidiary of The Blackstone Group Inc. (together with its affiliates, “Blackstone”), owns a special limited partner interest in BREIT OP. Substantially all of the Company’s business is conducted through BREIT OP. The Company and BREIT OP are externally managed by BX REIT Advisors L.L.C. (the “Adviser”). The Adviser is part of the real estate group of Blackstone, a leading global investment manager, which serves as the Company’s sponsor. The Company was formed on November 16, 2015 as a Maryland corporation and qualifies as a real estate investment trust (“REIT”) for U.S. federal income tax purposes.

As of December 31, 2019, the Company had received net proceeds of $12.4 billion from selling shares in the Offering, as defined below, and selling unregistered shares of the Company’s common stock. The Company had registered with the Securities and Exchange Commission (the “SEC”) an offering of up to $5.0 billion in shares of common stock (the “Initial Offering”) and accepted gross offering proceeds of $4.9 billion during the period January 1, 2017 to January 1, 2019. The Company subsequently registered with the SEC a follow-on offering of up to $12.0 billion in shares of common stock, consisting of up to $10.0 billion in shares in its primary offering and up to $2.0 billion in shares pursuant to its distribution reinvestment plan (the “Current Offering” and with the Initial Offering, the “Offering”). The Company intends to sell any combination of four classes of shares of its common stock, with a dollar value up to the maximum aggregate amount of the Current Offering. The share classes have different upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees. The Company intends to continue selling shares on a monthly basis.

As of December 31, 2019, the Company owned 1,054 properties and had 203 positions in real estate debt. The Company currently operates in eight reportable segments: Industrial, Multifamily, Net Lease, Hotel, Retail, Office, and Other Properties, and Real Estate Debt. Multifamily includes various forms of rental housing including apartments, student housing and manufactured housing. Other Properties includes self-storage properties. Net Lease includes the real estate assets of The Bellagio Las Vegas (“Bellagio”). Financial results by segment are reported in Note 13 — Segment Reporting.

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of the Company, the subsidiaries and joint ventures in which it has a controlling interest. For consolidated joint ventures, the non-controlling partner’s share of the assets, liabilities and operations of the joint ventures is included in non-controlling interests as equity of the Company. The non-controlling partner’s interest is generally computed as the joint venture partner’s ownership percentage. Certain of the joint ventures made by the Company provide the other partner a profits interest based on certain internal rate of return hurdles being achieved. Any profits interest due to the other partner is reported within non-controlling interests. All intercompany balances and transactions have been eliminated in consolidation.

The Company consolidates partially owned entities, in which it has a controlling financial interest. In determining whether the Company has a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, the Company considers whether the entity is a variable interest entity (“VIE”) and whether it is the primary beneficiary. The Company is the primary beneficiary of a VIE when it has (i) the power to direct the most significant activities impacting the economic performance of the VIE and (ii) the obligation to absorb losses or receive benefits significant to the VIE. BREIT OP and each of the Company’s joint ventures are considered to be a VIE. The Company consolidates these entities because it has the ability to direct the most significant activities of the entities such as purchases, dispositions, financings, budgets, and overall operating plans.

As of December 31, 2019, the total assets and liabilities of the Company’s consolidated VIEs, excluding BREIT OP, were $9.5 billion and $6.6 billion, respectively, compared to $2.8 billion and $1.9 billion as of December 31, 2018. Such amounts are included on the Company’s Consolidated Balance Sheets.

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.

In accordance with the guidance for business combinations, the Company determines whether the acquisition of a property qualifies as a business combination, which requires that the assets acquired and liabilities assumed constitute a business. If the property acquired does not constitute a business, the Company accounts for the transaction as an asset acquisition. The guidance for business combinations states that when substantially all of the fair value of the gross assets to be acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the asset or set of assets is not a business. All property acquisitions to date have been accounted for as asset acquisitions.

Whether the acquisition of a property acquired is considered a business combination or asset acquisition, the Company recognizes the identifiable assets acquired, the liabilities assumed, and any non-controlling interest in the acquired entity. In addition, for transactions that are business combinations, the Company evaluates the existence of goodwill or a gain from a bargain purchase. The Company expenses acquisition-related costs associated with business combinations as they are incurred. The Company capitalizes acquisition-related costs associated with asset acquisitions.

Upon acquisition of a property, the Company assesses the fair value of acquired tangible and intangible assets (including land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other identified intangible assets and assumed liabilities) and allocates the purchase price to the acquired assets and assumed liabilities. The Company assesses and considers fair value based on estimated cash flow projections that utilize discount and/or capitalization rates that it deems appropriate, as well as other available market information. Estimates of future cash flows are based on a number of factors including the historical operating results, known and anticipated trends, and market and economic conditions.

The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant. The Company also considers an allocation of purchase price of other acquired intangibles, including acquired in-place leases that may have a customer relationship intangible value, including (but not limited to) the nature and extent of the existing relationship with the tenants, the tenants’ credit quality and expectations of lease renewals. Based on its acquisitions to date, the Company’s allocation to customer relationship intangible assets has not been material.

The Company records acquired above-market and below-market leases at their fair values (using a discount rate which reflects the risks associated with the leases acquired) equal to the difference between (1) the contractual amounts to be paid pursuant to each in-place lease and (2) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed rate renewal options for below-market leases. Other intangible assets acquired include amounts for in-place lease values that are based on the Company’s evaluation of the specific characteristics of each tenant’s lease. Factors to be considered include estimates of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases. In estimating carrying costs, the Company includes real estate taxes, insurance and other operating expenses and estimates of lost rentals at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, the Company considers leasing commissions, legal and other related expenses.

Intangible assets and intangible liabilities are recorded as a component of Other Assets and Accounts Payable, Accrued Expenses, and Other Liabilities, respectively, on the Company’s Consolidated Balance Sheets. The amortization of acquired above-market and below-market leases is recorded as an adjustment to Rental Revenue on the Company’s Consolidated Statements of Operations. The amortization of in-place leases is recorded as an adjustment to Depreciation and Amortization Expense on the Company’s Consolidated Statements of Operations. The amortization of below-market and pre-paid ground leases are recorded as an adjustment to Rental Property Operating or Hotel Operating Expenses, as applicable, on the Company’s Consolidated Statements of Operations.

The cost of buildings and improvements includes the purchase price of the Company’s properties and any acquisition-related costs, along with any subsequent improvements to such properties. The Company’s investments in real estate are stated at cost and are generally depreciated on a straight-line basis over the estimated useful lives of the assets as follows:

Significant improvements to properties are capitalized. When assets are sold or retired, their costs and related accumulated depreciation are removed from the accounts with the resulting gains or losses reflected in net income or loss for the period.

Repairs and maintenance are expensed to operations as incurred and are included in Rental Property Operating and Hotel Operating Expenses on the Company’s Consolidated Statements of Operations.

The Company’s management reviews its real estate properties for impairment each quarter or when there is an event or change in circumstances that indicates an impaired value. If the carrying amount of the real estate investment is no longer recoverable and exceeds the fair value of such investment, an impairment loss is recognized. The impairment loss is recognized based on the excess of the carrying amount of the asset over its fair value. The evaluation of anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results. Since cash flows on real estate properties considered to be “long-lived assets to be held and used” are considered on an undiscounted basis to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized and such loss could be material to the Company’s results. If the Company determines that an impairment has occurred, the affected assets must be reduced to their fair value, less cost to sell. During the periods presented, no such impairment occurred.

The Company classifies the assets and liabilities related to its real estate investments as held for sale when a sale is probable to occur within one year. The Company considers a sale to be probable when a binding contract has been executed, the buyer has posted a non-refundable deposit, and there are limited contingencies to closing. The Company classifies held for sale assets and liabilities at the lower of depreciated cost or fair value less closing costs. Held for sale assets and liabilities are presented within other assets and other liabilities on the Company’s Consolidated Balance Sheets. Refer to Note 3 and Note 9 for additional details.

The Company’s investments in real estate debt consists of securities and loans. The Company has elected to classify its securities as trading securities and carry such investments at estimated fair value. As such, the resulting unrealized gains and losses are recorded as a component of Income from Real Estate Debt on the Company’s Consolidated Statements of Operations.

The Company elected the fair value option (“FVO”) for its investments in loans. As such, any unrealized gains or losses on its investments in loans are recorded as a component of Income from Real Estate Debt on the Consolidated Statements of Operations.

Interest income from the Company’s investments in real estate debt is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of premiums and discounts associated with these investments is deferred and recorded over the term of the investment as an adjustment to yield. Such items are recorded as components of Investments in Real Estate Debt on the Company’s Consolidated Statements of Operations.

Cash and cash equivalents represent cash held in banks, cash on hand, and liquid investments with original maturities of three months or less. The Company may have bank balances in excess of federally insured amounts; however, the Company deposits its cash and cash equivalents with high credit-quality institutions to minimize credit risk.

As of December 31, 2019 and December 31, 2018, restricted cash primarily consists of $787.7 million and $166.5 million, respectively, of cash received for subscriptions prior to the date in which the subscriptions are effective, which is held in a bank account controlled by the Company’s transfer agent but in the name of the Company. Other restricted cash consists of amounts in escrow related to real estate taxes, insurance in connection with mortgages at certain of our properties, security deposits and collateral for swaps.

The Company’s deferred charges include financing and leasing costs. Deferred financing costs include legal, structuring, and other loan costs incurred by the Company for its financing agreements. Deferred financing costs related to the Company’s mortgage notes and term loans are recorded as an offset to the related liability and amortized over the term of the applicable financing instruments. Deferred financing costs related to the Company’s revolving credit facilities and affiliate line of credit are recorded as a component of Other Assets on the Company’s Consolidated Balance Sheets and amortized over the term of the applicable financing agreements.

Deferred leasing costs incurred in connection with new leases, which consist primarily of brokerage and legal fees, are recorded as a component of Other Assets on the Company’s Consolidated Balance Sheets and amortized over the life of the related lease.

The Company’s sources of revenue and the related revenue recognition policies are as follows:

Rental revenue — primarily consists of base rent and tenant reimbursement income arising from tenant leases at the Company’s industrial, multifamily, net lease, office, retail and other properties. Base rent is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. The Company begins to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space. Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area maintenance, real estate taxes, and other recoverable costs included in lease agreements.

Hotel revenue — consists of income from the Company’s hotel properties. Hotel revenue consists primarily of room revenue and food and beverage revenue. Room revenue is recognized when the related room is occupied and other hotel revenue is recognized when the service is rendered.

Organization costs are expensed as incurred and recorded as a component of General and Administrative Expense on the Company’s Consolidated Statements of Operations and offering costs are charged to equity as such amounts are incurred.

The Adviser agreed to advance $10.2 million of certain organization and offering costs on behalf of the Company (including legal, marketing and fulfillment, regulatory, due diligence, administrative, accounting, tax, transfer agent and other expenses attributable to the Company’s organization, but excluding upfront selling commissions, dealer manager fees and stockholder servicing fees) through December 31, 2017. Such costs are being reimbursed to the Adviser pro rata over 60 months beginning January 1, 2018. For the years ended December 31, 2019 and 2018, the Company reimbursed $2.0 million and $2.0 million, respectively, to the Adviser for such costs.

Blackstone Advisory Partners L.P. (the “Dealer Manager”), a registered broker-dealer affiliated with the Adviser, serves as the dealer manager for the Offering. The Dealer Manager is entitled to receive selling commissions and dealer manager fees based on the transaction price of each applicable class of shares sold in the Offering. The Dealer Manager is also entitled to receive a stockholder servicing fee of 0.85%, 0.85% and 0.25% per annum of the aggregate net asset value (“NAV”) of the Company’s outstanding Class S shares, Class T shares, and Class D shares, respectively. There is no stockholder servicing fee with respect to Class I shares.

The following table details the selling commissions, dealer manager fees, and stockholder servicing fees for each applicable share class as of December 31, 2019:

For Class S shares sold in the Offering (other than as part of the Company’s distribution reinvestment plan), investors will pay upfront selling commissions of up to 3.5% of the transaction price. For Class T shares sold in the Offering (other than as part of the Company’s distribution reinvestment plan), investors will pay upfront selling commissions of up to 3.0% of the transaction price and upfront dealer manager fees of 0.5% of the transaction price, however such amounts may vary at certain participating broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. For Class D shares sold in the Offering (other than as part of the Company’s distribution reinvestment plan), investors will pay upfront selling commissions of up to 1.5% of the transaction price.

The Dealer Manager is entitled to receive stockholder servicing fees of 0.85% per annum of the aggregate NAV for Class S shares and Class T shares. For Class T shares such stockholder servicing fee includes, an advisor stockholder servicing fee of 0.65% per annum, and a dealer stockholder servicing fee of 0.20% per annum, of the aggregate NAV for the Class T shares, however, with respect to Class T shares sold through certain participating broker-dealers, the advisor stockholder servicing fee and the dealer stockholder servicing fee may be other amounts, provided that the sum of such fees will always equal 0.85% per annum of the NAV of such shares. For Class D shares, a stockholder servicing fee equal to 0.25% per annum of the aggregate NAV for the Class D shares.

The Dealer Manager has entered into agreements with the selected dealers distributing the Company’s shares in the Offering, which provide, among other things, for the re-allowance of the full amount of the selling commissions and dealer manager fees and all of the stockholder servicing fees received by the Dealer Manager to such selected dealers. Through December 31, 2019, the Dealer Manager had not retained any upfront selling commissions, dealer manager, or stockholder servicing fees. The Company will cease paying the

stockholder servicing fee with respect to any Class S share, Class T share or Class D share held in a stockholder’s account at the end of the month in which the total selling commissions, dealer manager fees and stockholder servicing fees paid with respect to the shares held by such stockholder within such account would exceed, in the aggregate, 8.75% (or, in the case of Class T shares sold through certain participating broker-dealers, a lower limit as set forth in any applicable agreement between the Dealer Manager and a participating broker-dealer) of the gross proceeds from the sale of such shares (including the gross proceeds of any shares issued under the Company’s distribution reinvestment plan with respect thereto). The Company will accrue the full cost of the stockholder servicing fee as an offering cost at the time each Class S, Class T, and Class D share is sold during the Offering. As of December 31, 2019 and 2018, the Company had accrued $478.5 million and $238.5 million, respectively, of stockholder servicing fees related to Class S shares, Class D shares and Class T shares sold and recorded such amount as a component of Due to Affiliates on the Company’s Consolidated Balance Sheets.

The Company qualifies to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”), for U.S. federal income tax purposes. The Company generally will not be subject to federal corporate income tax to the extent it distributes 100% of its taxable income to its stockholders. REITs are subject to a number of other organization and operational requirements. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

The Company leases its hotel investments to wholly-owned taxable REIT subsidiaries (“TRSs”). The TRSs are subject to taxation at the federal, state and local levels, as applicable. Revenues related to the hotels’ operations such as room revenue, food and beverage revenue and other revenue are recorded in the TRS along any with corresponding expenses. The Company accounts for applicable income taxes by utilizing the asset and liability method. As such, the Company records deferred tax assets and liabilities for the future tax consequences resulting from the difference between the carrying value of existing assets and liabilities and their respective tax basis. A valuation allowance for deferred tax assets is provided if the Company believes all or some portion of the deferred tax asset may not be realized. During the years ended December 31, 2019, 2018 and 2017 the Company recorded a net tax benefit of $0.9 million, $0.6 million and $0.3 million, respectively, within Other Income on the Company’s Consolidated Statements of Operations. The deferred benefit for the years ended December 31, 2019, 2018 and 2017 is $3.1 million, $1.5 million and $0.3 million, respectively. The current expense for the years ended December 31, 2019 and 2018 is $2.2 million and $ 0.9 million, respectively. There was no such tax expense for the year ended December 31, 2017. As of December 31, 2019, 2018 and 2017, the Company recorded a deferred tax asset of $4.9 million, $1.8 million, and $0.3 million, respectively, due to its hotel investments within Other Assets on the Company’s Consolidated Balance Sheets.

Under normal market conditions, the fair value of an investment is the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date (i.e., the exit price). Additionally, there is a hierarchal framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment and the state of the marketplace, including the existence and transparency of transactions between market participants. Investments with readily available actively quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments measured and reported at fair value are classified and disclosed in one of the following levels within the fair value hierarchy:

Level 1 — quoted prices are available in active markets for identical investments as of the measurement date. The Company does not adjust the quoted price for these investments.

Level 2 — quoted prices are available in markets that are not active or model inputs are based on inputs that are either directly or indirectly observable as of the measurement date.

Level 3 — pricing inputs are unobservable and include instances where there is minimal, if any, market activity for the investment. These inputs require significant judgment or estimation by management or third parties when determining fair value and generally represent anything that does not meet the criteria of Levels 1 and 2. Due to the inherent uncertainty of these estimates, these values may differ materially from the values that would have been used had a ready market for these investments existed.

The Company’s investments in real estate debt are reported at fair value. As of December 31, 2019 and 2018, the Company’s investments in real estate debt consisted of commercial mortgage-backed securities (“CMBS”), residential mortgage-backed securities

(“RMBS”), which are mortgage-related fixed income securities, corporate bonds, and term private mezzanine loans of real estate-related companies. The Company generally determines the fair value of its real estate debt by generally utilizing third-party pricing service providers and broker-dealer quotations on the basis of last available bid price.

In determining the fair value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models to determine the reported price. The pricing service providers’ internal models for securities such as real estate debt generally consider the attributes applicable to a particular class of the security (e.g., credit rating, seniority), current market data, and estimated cash flows for each class and incorporate deal collateral performance such as prepayment speeds and default rates, as available.

Certain of the Company’s investments in real estate debt, such as mortgages or mezzanine loans, are unlikely to have readily available market quotations. In such cases, the Company will generally determine the initial value based on the acquisition price of such investment if acquired by the Company or the par value of such investment if originated by the Company. Following the initial measurement, the Company will determine fair value by utilizing or reviewing certain of the following (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield or loan-to-value ratios and (vii) borrower financial condition and performance.

As of December 31, 2019 and 2018, the Company’s $4.5 billion and $2.3 billion, respectively, of investments in real estate debt were classified as Level 2.

As of December 31, 2019, the fair value of the Company’s mortgage notes, term loans, and secured revolving credit facilities, repurchase agreements, and unsecured revolving credit facilities were approximately $54.9 million above carrying value. As of December 31, 2018, the fair value of the Company’s mortgage notes, term loans, and revolving credit facilities, repurchase agreements, and affiliate line of credit were approximately $6.9 million below carrying value. Fair value of the Company’s indebtedness is estimated by modeling the cash flows required by the Company’s debt agreements and discounting them back to the present value using the appropriate discount rate. Additionally, the Company considers current market rates and conditions by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The inputs used in determining the fair value of the Company’s indebtedness are considered Level 3.

Basic net loss per share of common stock is determined by dividing net loss attributable to common stockholders by the weighted average number of common shares outstanding during the period. All classes of common stock are allocated net income/(loss) at the same rate per share and receive the same gross distribution per share.

The restricted stock grants of Class I shares held by our directors are considered to be participating securities because they contain non-forfeitable rights to distributions. The impact of these restricted stock grants on basic and diluted earnings per common share (“EPS”) has been calculated using the two-class method whereby earnings are allocated to the restricted stock grants based on dividends declared and the restricted stocks’ participation rights in undistributed earnings. As of December 31, 2019 and 2018, the effects of the two-class method on basic and diluted EPS were not material to the Company’s consolidated financial statements.

The Company’s stock-based compensation consists of incentive compensation awards issued to certain employees of affiliate portfolio company service providers. Such awards vest over the life of the awards and stock-based compensation expense is recognized for these awards in net income on a straight-line basis over the applicable vesting period of the award, based on the value of the awards at grant. Refer to Note 11 for additional information.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09 “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 broadly amends the accounting guidance for revenue recognition. ASU 2014-09 is effective for the first interim or annual period beginning after December 15, 2017, and is to be applied retrospectively. The Company adopted ASU 2014-09 on January 1, 2018 and applied it on a modified retrospective basis. Based on the Company’s completed assessment of this updated accounting guidance, it does not materially affect the amount or timing of revenue recognition for the Company and the Company did not recognize any cumulative-effect adjustment as a result of adoption.

On January 1, 2019, the Company adopted ASU 2016-02, “Leases,” and all related amendments (codified in Accounting Standards Codification Topic 842 (“Topic 842”)). Certain of the Company’s investments in real estate are subject to ground leases, for which lease liabilities and corresponding right-of-use (“ROU”) assets were recognized as a result of adoption. The Company calculated the amount of the lease liabilities and ROU assets by taking the present value of the remaining lease payments, and adjusted the ROU assets for any existing straight-line ground rent liabilities and acquired ground lease intangibles. The Company’s estimated incremental borrowing rate of a loan with a similar term as the corresponding ground leases was used as the discount rate, which was determined to be approximately 7.0%. Considerable judgment and assumptions were required to estimate the Company’s incremental borrowing rate which was determined by considering the Company’s credit quality, ground lease duration, and debt yields observed in the market.

Three of the Company’s existing ground leases were classified as operating leases, and upon adoption the Company recognized operating lease liabilities and corresponding ROU assets of $31.3 million. The Company’s existing below-market ground lease intangible asset of $4.5 million, above-market ground lease intangible liability of $4.6 million, and straight-line ground rent liability of $1.2 million were reclassified as of January 1, 2019 to be presented net of the operating ROU assets. In addition, the Company’s existing prepaid ground lease intangible asset of $15.7 million was reclassified as of January 1, 2019 to be presented along with the operating ROU assets.

The lease liabilities are included as a component of Accounts Payable, Accrued Expenses, and Other Liabilities and the related ROU assets are recorded as a component of Investments in Real Estate, Net on the Company’s Consolidated Balance Sheet. Refer to Note 3, Note 9 and Note 12 for additional information.

In transition, the Company elected the package of practical expedients to not reassess (i) whether existing arrangements are or contain a lease, (ii) the classification of an operating or financing lease in a period prior to adoption, and (iii) any initial direct costs for existing leases. Additionally, the Company elected to not use hindsight and carried forward its lease term assumptions when adopting Topic 842 and did not recognize lease liabilities and lease assets for leases with a term of 12 months or less. The Company applied ASU 2016-02 as of the effective date of January 1, 2019, and there was no impact to retained earnings as a result of the Company’s adoption.

The adoption of ASU 2016-02 for leases in which the Company is lessor did not have a material impact on the Company’s consolidated financial statements. The Company elected to not separate non-lease components from lease components and presented lease related revenues as a single line item, net of bad debt expense on the Company’s Consolidated Statement of Operations. Prior to the adoption of ASU 2016-02, the Company separated lease related revenue between “rental revenue” and “tenant reimbursement income” and bad debt expense as a component of “rental property operating” expense. As a result of adoption, the Company reclassified the prior period balances of “tenant reimbursement income” to “rental revenue” to conform to the current period presentation. The Company did not reclassify the prior period balance of bad debt expense on its consolidated statement of operations. The operating lease income presented in “rental revenue” for the years ended December 31, 2018 and 2017 includes $64.1 million and $11.0 million, respectively, previously classified as “tenant reimbursement income,” which was determined under the standard in effect prior to the Company’s adoption of ASU 2016-02. Refer to Note 12 for additional information.

During the year ended December 31, 2019, the Company acquired interests in 53 real estate investments, which were comprised of 443 industrial, 78 multifamily, 34 hotel, 21 self-storage, four retail, one office and one net lease property.

The following table provides further details of the properties acquired during the year ended December 31, 2019 ($ in thousands):

During the year ended December 31, 2018, the Company acquired interests in 32 real estate investments, which were comprised of 270 industrial, 73 multifamily, 15 hotel, and one retail property.

The following table provides details of the properties acquired during the year ended December 31, 2018 ($ in thousands):

The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2019 ($ in thousands):

The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, and below-market lease intangibles of the properties acquired during the year ended December 31, 2019 were 3, 6, and 6 years, respectively.

The following table summarizes the purchase price allocation for the properties acquired during the year ended December 31, 2018 ($ in thousands):

The weighted-average amortization periods for the acquired in-place lease intangibles, above-market lease intangibles, below-market ground lease intangibles, below-market lease intangibles, and above-market ground lease intangibles of the properties acquired during the year ended December 31, 2018 were 4, 5, 65, 7 and 86 years, respectively.

During the year ended December 31, 2019, the Company sold three properties across three separate transactions which resulted in a net gain of $35.0 million which was recorded within Net Gain on Dispositions of Real Estate on the Company’s Consolidated Statements of Operations.

As of December 31, 2019, six properties were classified as held for sale. Subsequent to December 31, 2019, one property was sold. The sale of the remaining five properties is expected to close in the first or second quarter of 2020.

The following table is a summary of the assets and liabilities of the Company’s properties classified as held for sale ($ in thousands):

The gross carrying amount and accumulated amortization of the Company’s intangible assets and liabilities consisted of the following ($ in thousands):

The estimated future amortization on the Company’s intangibles for each of the next five years and thereafter as of December 31, 2019 is as follows ($ in thousands):

The following tables detail the Company’s investments in real estate debt ($ in thousands):

				December 31, 2019
Number of Positions		Credit Rating⁽¹⁾	Collateral⁽²⁾	Weighted Average Coupon⁽³⁾	Weighted Average Maturity Date⁽⁴⁾	Face Amount/ Notional⁽⁵⁾		Cost Basis		Fair Value
CMBS - Floating:
	43	BB	Hospitality, Industrial, Multifamily, Office, Other, Diversified	L+2.82%	1/24/2025	$	996,720	$	994,189	$	997,022
	30	BBB	Hospitality, Industrial, Multifamily, Office, Other	L+2.29%	3/24/2025		746,053		743,664		745,510
	23	B	Hospitality, Industrial, Multifamily, Office	L+3.36%	12/8/2024		608,775		607,367		608,826
	9	A	Hospitality, Industrial, Office, Retail, Diversified	L+2.04%	11/14/2024		318,881		318,117		319,227
	1	AA	Office	L+4.25%	9/9/2020		8,257		8,332		8,277
	16	Other	Hospitality, Multifamily	L+2.62%	7/2/2025		228,394		227,887		228,090
	122								2,899,556		2,906,952
CMBS - Fixed:
	11	BB	Hospitality, Multifamily, Office, Diversified	3.8%	3/19/2028		297,379		283,944		282,977
	7	B	Hospitality, Multifamily, Office, Diversified	4.3%	1/27/2026		169,039		166,167		166,085
	14	BBB	Hospitality, Multifamily, Diversified	4.0%	1/22/2027		143,559		140,855		144,390
	11	Other	Hospitality, Multifamily, Office, Diversified	4.6%	11/7/2027		240,761		238,437		238,518
	43								829,403		831,970
Corporate Bonds:
	8	BB	Hospitality, Multifamily, Diversified	5.1%	4/15/2027		221,986		220,757		230,006
	4	B	Hospitality, Multifamily, Other	5.9%	6/29/2026		54,316		55,739		58,105
	12								276,496		288,111
CMBS - Zero Coupon:
	1	BB	Multifamily	N/A	4/8/2025		27,273		20,590		20,866
	3	Other	Multifamily	N/A	4/24/2027		208,817		106,629		115,161
	4								127,219		136,027
RMBS - Fixed:
	8	BB	Multifamily	4.0%	9/13/2028		25,528		25,534		25,482
	1	B	Multifamily	6.3%	5/16/2027		3,787		3,972		3,966
	9								29,506		29,448
CMBS - Interest Only:
	2	AAA	Multifamily	0.1%	6/12/2026		1,799,254		9,554		9,550
	1	BBB	Multifamily	0.1%	1/21/2028		225,803		1,372		1,371
	1	A	Multifamily	0.1%	5/19/2025		194,399		914		913
	1	Other	Multifamily	4.5%	12/17/2026		42,024		11,724		11,713
	5								23,564		23,547
	195		Total real estate securities						4,185,744		4,216,055
Term Loans:
	5	B	Hospitality, Industrial	L+3.71%	1/8/2025		73,952		73,364		72,605
	1	BB	Diversified	L+2.75%	5/15/2026		54,155		53,916		54,290
	1	Other	Multifamily	L+1.70%	2/6/2022		47,132		46,186		46,234
	7								173,466		173,129
Mezzanine Loans:
	1	Other	Hospitality	L+6.86%	12/15/2024		134,750		134,078		134,076
	8		Total real estate loans						307,544		307,205
	203		Total real estate debt					$	4,493,288	$	4,523,260

					December 31, 2018
Number of Positions		Credit Rating⁽¹⁾		Collateral⁽²⁾	Weighted Average Coupon⁽³⁾	Weighted Average Maturity Date⁽⁴⁾	Face Amount/ Notional⁽⁵⁾		Cost Basis		Fair Value
CMBS:
	38	BB	Hospitality, Industrial, Multifamily, Office, Retail		L+2.83%	9/4/2024	$	941,240	$	939,742	$	930,411
	26	BBB		Hospitality, Industrial, Multifamily, Office	L+2.15%	11/18/2024		578,771		576,601		571,171
	21	B		Hospitality, Multifamily, Office	L+3.56%	9/19/2024		496,383		495,095		490,019
	3	A		Hospitality, Industrial, Retail	L+1.81%	3/10/2023		89,165		89,184		88,358
	7	Other		Multifamily	L+1.99%	6/13/2026		35,442		34,876		34,951
	95									2,135,498		2,114,910
CMBS - Interest Only:
	2	AAA		Multifamily	0.1%	3/12/2027		1,802,581		9,959		9,957
	1	BBB		Multifamily	0.1%	5/25/2028		225,802		1,414		1,415
	1	A		Multifamily	0.1%	7/25/2025		194,399		1,001		1,001
	4									12,374		12,373
CMBS - Zero Coupon:
	2	Other		Multifamily	N/A	3/2/2027		166,793		80,892		81,875
Corporate Bond:
	1	BB		Hospitality	6.5%	9/15/2026		52,652		52,652		50,755
	102							Total real estate debt	$	2,281,416	$	2,259,913

The Company’s investments in real estate debt included CMBS and loans collateralized by properties owned by Blackstone-advised investment vehicles and CMBS collateralized by loans originated or acquired by Blackstone-advised investment vehicles. The following table details the Company’s affiliate real estate debt positions ($ in thousands):

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.

The Company’s investments in real estate debt also included $186.8 million of CMBS collateralized by pools of commercial real estate debt, a portion of which included certain of the Company’s mortgage notes. The Company recognized $6.9 million and $0.7 million of interest income related to such CMBS during the years ended December 31, 2019 and 2018, respectively. There was no interest income related to such CMBS during the year ended December 31, 2017.

As described in Note 2, the Company classifies its investments in real estate debt securities as trading and has elected the FVO for its investments in loans. As such, the Company records these investments at fair value in Real Estate Debt on the Company’s

Consolidated Balance Sheets. During the years ended December 31, 2019, 2018, and 2017, the Company recorded an unrealized gain of $51.5 million, an unrealized loss of $24.7 million and an unrealized gain of $2.4 million, respectively, as a component of Income From Real Estate Debt in the Company’s Consolidated Statements of Operations. During the years ended December 31, 2019 and 2018, certain of the Company’s CMBS investments were fully or partially repaid and the Company recorded a realized gain of $2.1 million and $194 thousand, respectively, as a component of Income From Real Estate Debt on the Company’s Consolidated Statements of Operations. During the year ended December 31, 2019, the Company sold 18 securities which resulted in a $5.2 million gain on the Company’s Consolidated Statements of Operations. During the year ended December 31, 2018, the Company sold one security which resulted in a $7 thousand gain on the Company’s Consolidated Statements of Operations. The Company did not sell any positions during 2017.

The following is a summary of the mortgage notes, term loans, and secured revolving credit facilities secured by the Company’s properties ($ in thousands):

The following table presents the future principal payments due under the Company’s mortgage notes, term loans, and secured revolving credit facilities as of December 31, 2019 ($ in thousands):

The Company has entered into master repurchase agreements with Citigroup Global Markets Inc. (the “Citi MRA”), Royal Bank of Canada (the “RBC MRA”), Bank of America Merrill Lynch (the “BAML MRA”), Morgan Stanley Bank, N.A. (the “MS MRA”), MUFG Securities EMEA PLC (the “MUFG MRA”), HSBC Bank USA, National Association (the “HSBC MRA”), and Barclays Bank PLC (the “Barclays MRA”) to provide the Company with additional financing capacity secured by certain of the Company’s investments in real estate debt. The terms of the Citi MRA, RBC MRA, BAML MRA, MS MRA, MUFG MRA, and HSBC MRA provide the lenders the ability to determine the size and terms of the financing provided based upon the particular collateral pledged by the Company from time-to-time. The Barclays MRA has a maximum facility size of $750.0 million and repurchase agreements under the Barclays MRA have longer dated maturity compared to the Company’s other master repurchase agreements. Additionally,

the Barclays MRA contains specific spread and advance rate provisions based on the rating of the underlying real estate debt securities. The Company is in compliance with all financial covenants of the Barclays MRA.

The following tables are a summary of the Company’s repurchase agreements ($ in thousands):

The weighted average interest rate of our repurchase agreements was 2.95% (L+1.26%) and 3.96% (L+1.42%) for the year ended December 31, 2019 and 2018, respectively. The term “L” refers to the one-month, three-month or six-month U.S. dollar-denominated London Interbank Offer Rate (“LIBOR”).

On January 23, 2017, the Company entered into an unsecured, uncommitted line of credit (the “Line of Credit”) up to a maximum amount of $250 million with Blackstone Holdings Finance Co. L.L.C. (“Lender”), an affiliate of Blackstone. Effective January 15, 2020, the capacity of the Line of Credit was decreased to $150 million. The Line of Credit expires on January 22, 2021, and may be extended for up to 12 months, subject to Lender approval. The interest rate is the then-current rate offered by a third-party lender, or, if no such rate is available, LIBOR plus 2.50%. Interest under the Line of Credit is determined based on a one-month U.S. dollar-denominated LIBOR, which was 1.8% and 2.5% as of December 31, 2019 and 2018, respectively. Each advance under the Line of Credit is repayable on the earliest of (i) the expiration of the Line of Credit, (ii) Lender’s demand and (iii) the date on which the Adviser no longer acts as the Company’s investment adviser, provided that the Company will have 180 days to make such repayment in the cases of clauses (i) and (ii) and 45 days to make such repayment in the case of clause (iii). To the extent the Company has not repaid all loans and other obligations under the Line of Credit when repayment is required, the Company is obligated to apply the net cash proceeds from the Offering and any sale or other disposition of assets to the repayment of such loans and other obligations; provided that the Company will be permitted to (x) make payments to fulfill any repurchase requests pursuant to the Company’s share repurchase plan, (y) use funds to close any acquisition of property that the Company committed to prior to receiving a demand notice and (z) make quarterly distributions to the Company’s stockholders at per share levels consistent with the immediately preceding fiscal quarter and as otherwise required for the Company to maintain its REIT status. As of December 31, 2019 and 2018, the Company had no outstanding balance under the Line of Credit.

The Company is party to an unsecured line of credit with multiple banks. The line of credit expires on February 22, 2023 and may be extended for one year. Interest under the line of credit is determined based on one-month U.S. dollar-denominated LIBOR plus 2.50%. As of December 31, 2019, the capacity of the unsecured line of credit was $900 million. As of December 31, 2019, the Company had a $30 million letter of credit outstanding, which reduced the available capacity of the unsecured line of credit to $870 million.

The following table summarizes the components of accounts payable, accrued expenses and other liabilities ($ in thousands):

The Company is authorized to issue preferred stock and four classes of common stock consisting of Class S shares, Class I shares, Class T shares, and Class D shares. The Company’s board of directors has the ability to establish the preferences and rights of each class or series of preferred stock, without stockholder approval, and as such, it may afford the holders of any series or class of preferred stock preferences, powers and rights senior to the rights of holders of common stock. The differences among the common share classes relate to upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees. See Note 2 for a further description of such items. Other than the differences in upfront selling commissions, dealer manager fees and ongoing stockholder servicing fees, each class of common stock has the same economic and voting rights.

As of December 31, 2019, the Company had authority to issue 3,100,000,000 shares, consisting of the following:

The following tables detail the movement in the Company’s outstanding shares of common stock (in thousands):

The Company has adopted a share repurchase plan whereby, subject to certain limitations, stockholders may request on a monthly basis that the Company repurchases all or any portion of their shares. Should repurchase requests, in the Company’s judgment, place an undue burden on its liquidity, adversely affect its operations or risk having an adverse impact on the Company as a whole, or should the Company otherwise determine that investing its liquid assets in real properties or other illiquid investments rather than repurchasing its shares is in the best interests of the Company as a whole, then the Company may choose to repurchase fewer shares than have been requested to be repurchased, or none at all. Further, the Company’s board of directors may modify, suspend or terminate the Company’s share repurchase plan if it deems such action to be in the Company’s best interest and the best interest of its

stockholders. In the event that the Company determines to repurchase some but not all of the shares submitted for repurchase during any month, shares repurchased at the end of the month will be repurchased on a pro rata basis.

For the years ended December 31, 2019, 2018, and 2017, the Company repurchased shares for $236.4 million, $56.4 million, and $0.7 million, respectively. The Company had no unfulfilled repurchase requests during the years ended December 31, 2019, 2018 and 2017.

The Company generally intends to distribute substantially all of its taxable income, which does not necessarily equal net income as calculated in accordance with GAAP, to its stockholders each year to comply with the REIT provisions of the Internal Revenue Code.

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. The following table details the aggregate distributions declared for each applicable class of common stock:

Distributions for the year ended December 31, 2019 were characterized, for federal income tax purposes, as 8.75% ordinary income, 1.17% capital gains and 90.08% return of capital. Of the 8.75%, 8.60% and 0.15% of the distributions paid in 2019 were non-qualified and qualified, respectively. Distributions for the year ended December 31, 2018 were characterized, for federal income tax purposes, as 3.11% ordinary income and 96.89% return of capital. Of the 3.11%, 0.51% and 2.60% of the distributions paid in 2018 were non-qualified and qualified, respectively. Distributions for the year ended December 31, 2017, were characterized, for federal income tax purposes, as 34.15% ordinary income and 65.85% return of capital. Of the 34.15%, 32.55% and 1.60% of the distributions paid in 2017 were non-qualified and qualified, respectively.

In connection with its performance participation interest, the Special Limited Partner holds Class I units in BREIT OP. See Note 11 for further details of the Special Limited Partner’s performance participation interest. Because the Special Limited Partner has the ability to redeem its Class I units for Class I shares in the Company or cash, at the election of the Special Limited Partner, the Company has classified these Class I units as Redeemable Non-controlling Interest in mezzanine equity on the Company’s Consolidated Balance Sheets.

The following table summarizes the redeemable non-controlling interest activity related to the Special Limited Partner for the years ended December 31, 2019 and 2018 ($ in thousands):

In addition to the Special Limited Partner’s interest noted above, certain of the Company’s third party joint ventures also have a redeemable non-controlling interest in such joint ventures. As of December 31, 2019, $20.9 million related to such third party joint ventures was included in Redeemable Non-controlling Interests on the Company’s Consolidated Balance Sheets.

The Redeemable Non-controlling Interests are recorded at the greater of their carrying amount, adjusted for their share of the allocation of income or loss and distributions, or their redemption value, which is equivalent to fair value, of such interests at the end of each measurement period. As the redemption value was greater than the adjusted carrying value for certain of the non-controlling interests at December 31, 2019 and 2018, the Company recorded an allocation adjustment of $6.8 million and $2.2 million, respectively, between Additional Paid-in Capital and Redeemable Non-controlling Interest.

On July 27, 2018, the Company entered into an Amended and Restated Limited Partnership Agreement (the “A&R OP Agreement”) for BREIT OP. The A&R OP Agreement amended the limited partnership agreement governing BREIT OP to provide for a new class of units (“Class B Units”) of BREIT OP, among other changes. Class B Units are available to certain suitable investors in private placements generally utilizing a “draw-down” structure. Class B Units are sold at their NAV per unit, which will equal the NAV per Class I unit of BREIT OP and will generally correspond to the NAV per share of the Company’s Class I shares.

Class B Units are subject to the same fees and expenses of Class I Units and do not have any preferential rights relative to the Company’s interest in BREIT OP, nor are they exchangeable for any shares of the Company’s common stock. Holders of the Class B Units have a right to redeem their units for cash in a manner similar to the ability of the Company’s stockholders to have their shares repurchased under the Company’s share repurchase plan. Class B Unit redemptions are subject to similar limitations as share repurchases under the Company’s share repurchase plan, namely the early repurchase deduction and caps on monthly and quarterly repurchases (calculated on an aggregate basis with shares of the Company’s common stock submitted for repurchase for the applicable period). The redemption rights of the Class B unitholders do not affect the terms of the Company’s share repurchase plan. Class B Units have the same limited voting rights as the other BREIT OP units and such rights do not affect the Company’s exclusive power, as general partner of BREIT OP, to manage and conduct the business of BREIT OP.

During the years ended December 31, 2019 and 2018, BREIT OP received $0 and $100 million in Class B Units subscriptions from an entity advised by Blackstone Insurance Solutions. As of December 31, 2019 and 2018, there were 9,268,500 Class B Units outstanding. Class B Units subscriptions are recorded as a component of Non-controlling Interests on the Company’s Consolidated Balance Sheets.

The following table details the components of due to affiliates ($ in thousands):

The Special Limited Partner holds a performance participation interest in BREIT OP that entitles it to receive an allocation of BREIT OP’s total return to its capital account. Total return is defined as distributions paid or accrued plus the change in NAV. Under the BREIT OP agreement, the annual total return will be allocated solely to the Special Limited Partner after the other unit holders have received a total return of 5% (after recouping any loss carryforward amount) and such allocation will continue until the allocation between the Special Limited Partner and all other unit holders is equal to 12.5% and 87.5%, respectively. Thereafter, the Special Limited Partner will receive an allocation of 12.5% of the annual total return. The allocation of the performance participation interest is ultimately determined at the end of each calendar year and will be paid in cash or Class I units of BREIT OP, at the election of the Special Limited Partner. During the years ended December 31, 2019, 2018 and 2017, the Company recognized $141.4 million, $37.5 million and $17.0 million, respectively, of Performance Participation Allocation Expense in the Company’s Consolidated Statement of Operations.

In January 2020, the Company issued approximately 11.7 million Class I units and 0.7 million Class B units in BREIT OP to the Special Limited Partner as payment for the 2019 performance participation allocation. Such units were issued at the NAV per unit as of December 31, 2019. Subsequent to the Class I units and Class B units being issued, 7.3 million of such units were redeemed for $83.6 million and 0.8 million of such units were exchanged for unregistered Class I shares in the Company. In January 2019, the Company issued approximately 3.5 million Class I units in BREIT OP to the Special Limited Partner as payment for the 2018 performance participation allocation. Such Class I units were issued at the NAV per unit as of December 31, 2018. Subsequent to the Class I units being issued, 0.4 million of such units were redeemed for $4.3 million and 1.1 million of such units were exchanged for unregistered Class I shares in the Company. In January 2018, the Company issued approximately 1.6 million Class I units in BREIT OP to the Special Limited Partner as payment for the 2017 performance participation allocation. Such Class I units were issued at the NAV per unit as of December 31, 2017. In June 2018, the Special Limited Partner redeemed 0.8 million Class I units in BREIT OP for $8.4 million based on the NAV of the Class I units at May 31, 2018. As of December 31, 2019, Blackstone and its employees, including the Company’s executive officers, continue to own an aggregate of $72.9 million worth of shares of the Company and Class I units of BREIT OP.

The Adviser is entitled to an annual management fee equal to 1.25% of the Company’s NAV, payable monthly, as compensation for the services it provides to the Company. The management fee can be paid, at the Adviser’s election, in cash, shares of common stock, or BREIT OP units. The Adviser has elected to receive the management fee in shares of the Company’s common stock to date. During the years ended December 31, 2019, 2018, and 2017, the Company incurred management fees of $108.1 million, $42.7 million, and $8.9 million, respectively. In accordance with the advisory agreement between the Company, BREIT OP and the Adviser, the Adviser waived the management fee for the period January 1, 2017 to June 30, 2017.

The Company issued 8,424,263, 3,845,338, and 664,411 unregistered Class I shares to the Adviser as payment for the 2019, 2018 and 2017 management fees, respectively, and also had a payable of $13.9 million and $5.1 million related to management fees as of December 31, 2019 and 2018, respectively, which is included in Due to Affiliates on the Company’s Consolidated Balance Sheets. During January 2020, 2019, and 2018, the Adviser was issued 1,211,870, 474,552 and 180,215, respectively, unregistered Class I shares as payment for the management fee accrued as of December 31, 2019, 2018 and 2017. The shares issued to the Adviser for payment of the management fee were issued at the applicable NAV per share at the end of each month for which the fee was earned. During 2019, the Adviser submitted 10,297,777 Class I shares for an aggregate repurchase price of $114.8 million. During 2018, the Adviser submitted 1,828,163 Class I shares for an aggregate repurchase price of $19.8 million.

The Company has engaged BRE Hotels and Resorts (“BRE”), a portfolio company controlled by a Blackstone-advised fund, to provide, as applicable, operational services (including, without limitation, property management), corporate support services (including, without limitation, accounting, legal and tax) and transaction support services for the Company’s hotel properties.

The Company has engaged LivCor, LLC (“LivCor”), a portfolio company owned by a Blackstone-advised fund, to provide, as applicable, operational services (including, without limitation, property management and construction management), corporate support services (including, without limitation, accounting, information technology, legal, tax and human resources) and transaction support services for the Company’s multifamily properties.

For the year ended December 31, 2017, the Company engaged Equity Office Management, L.L.C. (“EOM”), a portfolio company owned by Blackstone-advised funds, to provide, as applicable, operational services (including, without limitation, property management, leasing, and construction management), corporate support services (including, without limitation, accounting, information technology, legal, tax and human resources) and transaction support services for the Company’s office and industrial properties. Beginning January 1, 2018, the Company engaged Gateway Industrial Properties L.L.C. (“Gateway”), a portfolio company owned by a Blackstone-advised fund, to provide the services that EOM had previously provided to the Company’s industrial properties. Beginning March 2019, the Company engaged Link Industrial Properties LLC (“Link”), a portfolio company owned by a Blackstone-advised fund, to provide the services that Gateway had previously provided to the Company’s industrial properties.

The Company has engaged ShopCore Properties TRS Management LLC (“ShopCore”), a portfolio company owned by a Blackstone-advised fund, to provide, as applicable, operational services (including, without limitation, property management, construction management and leasing services), corporate support services (including, without limitation, accounting, information technology, legal, tax and human resources) and transaction support services for the Company’s retail properties.

The Company has engaged Revantage Corporate Services, LLC (“Revantage”), a portfolio company owned by a Blackstone-advised fund, to provide, as applicable, corporate support services (including, without limitation, accounting, legal, tax, treasury, valuation services, information technology and data management), and transaction support services to certain of the Company’s investments directly.

The Company issued incentive compensation awards to certain employees of the affiliate portfolio company service providers described above on January 1, 2019 that entitles them to receive an allocation of total return over a certain hurdle amount, as determined by the Company. The value of the award at January 1, 2019 was $8.0 million and will be amortized over the four year service period. As of December 31, 2019, the total unrecognized compensation cost relating to the portfolio company incentive compensation awards was $6.0 million and is expected to be recognized over a period of 3 years from December 31, 2019.

The 2018 portfolio company incentive compensation awards of $4.7 million became payable on December 31, 2018 and, in January 2019, the Company issued approximately 0.4 million of fully vested Class I units in BREIT OP to certain employees of such companies. During the year ended December 31, 2019, certain employees of affiliate portfolio company service providers submitted 64,393 Class I units issued as part of the 2018 incentive compensation awards for repurchase resulting in a total repurchase of $0.7 million.

None of Blackstone, the Adviser, or the affiliate portfolio company service providers receive any incentive compensation from the aforementioned arrangements.

The following table details the amounts incurred for such providers during the years ended December 31, 2019, 2018, and 2017 ($ in thousands):

Affiliate service provider expenses and portfolio company incentive compensation awards are included as a component of Rental Property Operating and Hotel Operating expense, as applicable, in the Company’s Consolidated Statements of Operations.

The following table details the transaction support service fees incurred for such providers ($ in thousands):

Transaction support service fees were capitalized to Investments in Real Estate on the Company’s Consolidated Balance Sheets. Neither Blackstone nor the Adviser receives any fees from the aforementioned arrangements.

As of December 31, 2019 and 2018, the Adviser had advanced $2.0 million and $1.1 million, respectively, of expenses on the Company’s behalf for general corporate expenses provided by unaffiliated third parties. Additionally, as of December 31, 2019 and 2018, the Company had $42.1 million and $3.4 million, respectively, of accrued repurchases of Class I shares due to the Adviser.

During the years ended December 31, 2019, 2018, and 2017, the Company engaged an affiliate of the Adviser to perform certain internal audit and compliance functions. For the years ended December 31, 2019, 2018, and 2017, the Company had incurred $40,000, $40,000 and $30,000, respectively, of fees for such services.

Blackstone owns Lexington National Land Services (“LNLS”), a title agent company. LNLS acts as an agent for one or more underwriters in issuing title policies and/or providing support services in connection with investments by the Company, Blackstone and their affiliates and related parties and third parties. LNLS focuses on transactions in rate-regulated states where the cost of title insurance is non-negotiable. LNLS will not perform services in non-regulated states for the Company, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii) when a third party is paying all or a material portion of the premium or (iv) when providing only support services to the underwriter. LNLS earns fees, which would have otherwise been paid to third parties, by providing title agency services and facilitating placement of title insurance with underwriters. Blackstone receives distributions from LNLS in connection with investments by the Company based on its equity interest in LNLS. In each case, there will be no related offset to the Company.

During the years ended December 31, 2019 and 2018, the Company paid LNLS $14.8 million and $4.6 million, respectively, for title services related to 43 and 16 investments, respectively, and such costs were capitalized to Investments in Real Estate or recorded as deferred financing costs, which is a reduction to Mortgage Notes, Term Loans, and Secured Revolving Credit Facilities on the Company’s Consolidated Balance Sheets.

As of December 31, 2019, the Company had a receivable of $3.6 million from Livcor, L.L.C. and such amount is included in Other Assets on the Company’s Consolidated Balance Sheets.

As of December 31, 2019, the Company had a receivable of $7.8 million from funds affiliated with the Adviser for post-closing settlements related to the Jupiter 12 Industrial Portfolio acquisition. Such amount is included in Other Assets on the Company’s Consolidated Balance Sheets.

Certain of the Company’s investments in real estate are subject to ground leases. The Company’s ground leases are classified as either operating leases or financing leases based on the characteristics of each lease. As of December 31, 2019, the Company had 15 ground leases classified as operating and two ground leases classified as financing. Each of the Company’s ground leases were acquired as part of the acquisition of real estate and no incremental costs were incurred for such ground leases. The Company’s ground leases are non-cancelable, and two of the Company’s operating leases contain renewal options for additional 99 and 10 year terms.

The following table presents the future lease payments due under the Company’s ground leases as of December 31, 2019 ($ in thousands):

The Company utilized its incremental borrowing rate, which was between 5% and 7%, to determine its lease liabilities. As of December 31, 2019, the weighted average remaining lease term of the Company’s operating leases and financing leases was 57 years and 77 years, respectively.

The following table presents the future lease payments due under the Company’s ground leases as of December 31, 2018, prior to the adoption of ASU 2016-02 ($ in thousands):

Payments under the Company’s ground leases primarily contain fixed payment components that may include periodic increases fixed to an index or periodic fixed percentage escalations. One of the Company’s ground leases contains a variable component based on a percentage of revenue.

The following table summarizes the fixed and variable components of the Company’s operating leases ($ in thousands):

The following table summarizes the fixed and variable components of the Company’s financing leases ($ in thousands):

Lease costs recognized during the prior periods are presented under the standard in effect prior to the Company’s adoption of ASU 2016-02.

The Company’s rental revenue primarily consists of rent earned from operating leases at the Company’s multifamily, industrial, retail, office, net lease and other properties. Leases at the Company’s industrial, retail, and office properties generally include a fixed base rent and certain leases also contain a variable component. The variable component of the Company’s operating leases at its industrial, retail, and office properties primarily consist of the reimbursement of operating expenses such as real estate taxes, insurance, and common area maintenance costs.

Rental revenue from the Company’s lease at the Bellagio consists of a fixed annual rent that escalates annually throughout the term of the lease and the tenant is generally responsible for all property-related expenses, including taxes, insurance and maintenance. The Company assessed the classification of the Bellagio lease and determined the lease was an operating lease. The Company’s assessment included the consideration of the present value of the lease payments over the lease term and the residual value of the assets under the lease.

Leases at the Company’s industrial, retail, office, and net lease properties are generally longer term and may contain extension and termination options at the lessee’s election. Rental revenue earned from leases at the Company’s multifamily properties primarily consist of a fixed base rent and certain leases contain a variable component that allows for the pass-through of certain operating expenses such as utilities. Leases at the Company’s multifamily and other properties are short term in nature, generally not greater than 12 months in length.

The following table details the components of operating lease income from leases in which the Company is the lessor ($ in thousands):

The following table presents the future minimum rents the Company expects to receive for its industrial, retail, office and net lease properties as of December 31, 2019 ($ in thousands). Leases at the Company’s multifamily and self-storage properties are short term, generally 12 months or less, and are not included.

The following table presents the future minimum rents the Company expects to receive for its industrial and retail properties as of December 31, 2018, prior to the adoption of ASU 2016-02 ($ in thousands):

The Company operates in eight reportable segments: Industrial properties, Multifamily properties, Net Lease properties, Hotel properties, Retail properties, Office properties, Other properties and Real Estate Debt. The Company allocates resources and evaluates results based on the performance of each segment individually. The Company believes that Segment Net Operating Income is the key performance metric that captures the unique operating characteristics of each segment.

The following table sets forth the financial results by segment for the year ended December 31, 2019 ($ in thousands):

	Industrial			Multifamily			Net Lease			Hotel			Retail			Office			Other Properties			Real Estate Debt		Total
Revenues:
Rental revenue	$	461,939		$	673,173		$	42,317		$	—		$	15,869		$	2,124		$	6,191		$	—	$	1,201,613
Hotel revenue		—			—			—			432,892			—			—			—			—		432,892
Other revenue		2,312			39,340			—			8,858			398			81			778			—		51,767
Total revenues		464,251			712,513			42,317			441,750			16,267			2,205			6,969			—		1,686,272

Expenses:
Rental property operating		137,401			322,773			—			—			5,539			799			3,454			—		469,966
Hotel operating		—			—			—			304,710			—			—			—			—		304,710
Total expenses		137,401			322,773			—			304,710			5,539			799			3,454			—		774,676
Income from real estate debt		—			—			—			—			—			—			—			213,062		213,062
Segment net operating income	$	326,850		$	389,740		$	42,317		$	137,040		$	10,728		$	1,406		$	3,515		$	213,062	$	1,124,658

Depreciation and amortization	$	(291,940	)	$	(427,209	)	$	(14,858	)	$	(72,765	)	$	(8,640	)	$	(1,253	)	$	(7,374	)	$	—	$	(824,039	)

Other income (expense):
General and administrative																									(18,170	)
Management fee																									(108,115	)
Performance participation allocation																									(141,396	)
Net gain on dispositions of real estate																									35,035
Interest income																									3,041
Interest expense																									(487,517	)
Other income (expense)																									2,260
Net loss																								$	(414,243	)
Net loss attributable to non-controlling interests in third party joint ventures																								$	5,671
Net loss attributable to non-controlling interests in BREIT OP																									6,801
Net loss attributable to BREIT stockholders																								$	(401,771	)

The following table sets forth the financial results by segment for the year ended December 31, 2018 ($ in thousands):

	Industrial			Multifamily			Hotel			Retail			Real Estate Debt		Total
Revenues:
Rental revenue	$	203,084		$	345,619		$	—		$	9,961		$	—	$	558,664
Hotel revenue		—			—			138,433			—			—		138,433
Other revenue		578			22,945			2,485			153			—		26,161
Total revenues		203,662			368,564			140,918			10,114			—		723,258

Expenses:
Rental property operating		62,824			176,800			—			3,469			—		243,093
Hotel operating		—			—			97,248			—			—		97,248
Total expenses		62,824			176,800			97,248			3,469			—		340,341
Income from real estate debt		—			—			—			—			55,323		55,323
Segment net operating income	$	140,838		$	191,764		$	43,670		$	6,645		$	55,323	$	438,240

Depreciation and amortization	$	(116,206	)	$	(257,201	)	$	(27,944	)	$	(4,944	)	$	—	$	(406,295	)

Other income (expense):
General and administrative																(10,982	)
Management fee																(42,659	)
Performance participation allocation																(37,484	)
Interest income																410
Interest expense																(233,184	)
Other income (expense)																489
Net loss															$	(291,465	)
Net loss attributable to non-controlling interests in third party joint ventures															$	6,188
Net loss attributable to non-controlling interests in BREIT OP																4,221
Net loss attributable to BREIT stockholders															$	(281,056	)

The following table sets forth the financial results by segment for the year ended December 31, 2017 ($ in thousands):

	Industrial			Multifamily			Hotel			Retail			Real Estate Debt		Total
Revenues:
Rental revenue	$	30,846		$	86,322		$	—		$	4,213		$	—	$	121,381
Hotel revenue		—			—			29,916			—			—		29,916
Other revenue		12			6,589			—			34			—		6,635
Total revenues		30,858			92,911			29,916			4,247			—		157,932

Expenses:
Rental property operating		9,265			40,831			—			1,019			—		51,115
Hotel operating		—			—			20,417			—			—		20,417
Total expenses		9,265			40,831			20,417			1,019			—		71,532
Income from real estate debt		—			—			—			—			17,749		17,749
Segment net operating income	$	21,593		$	52,080		$	9,499		$	3,228		$	17,749	$	104,149

Depreciation and amortization	$	(17,063	)	$	(96,732	)	$	(6,071	)	$	(1,927	)	$	—	$	(121,793	)

Other income (expense):
General and administrative																(7,692	)
Management fee																(8,867	)
Performance participation allocation																(16,974	)
Interest income																454
Interest expense																(36,884	)
Other income (expense)																57
Net loss															$	(87,550	)
Net loss attributable to non-controlling interests in third party joint ventures															$	1,292
Net loss attributable to non-controlling interests in BREIT OP																—
Net loss attributable to BREIT stockholders															$	(86,258	)

From time to time, the Company may be involved in various claims and legal actions arising in the ordinary course of business. For the years ended December 31, 2019 and 2018, the Company was not involved in any material legal proceedings.

The following tables present the Company’s quarterly results ($ in thousands, except per share data):

Subsequent to December 31, 2019, we closed a transaction to form a new joint venture with MGM Growth Properties LLC (“MGP”) to acquire the Las Vegas real estate assets of the MGM Grand and Mandalay Bay for $4.6 billion. MGP owns 50.1% of the joint venture, and we own 49.9%. At closing, we entered into a long-term triple net master lease with MGM Resorts International (“MGM”) which benefits from a full corporate guarantee of rent payments by MGM.

Subsequent to December 31, 2019, the Company acquired an aggregate of $2.7 billion of real estate (not including the MGM Grand and Mandalay Bay transaction described above) across eight separate transactions, exclusive of closing costs. The acquisitions were related to multifamily, industrial, and retail properties.

Subsequent to December 31, 2019, the Company purchased an aggregate of $482.1 million of real estate debt.

As of March 24, 2020, the Company had sold an aggregate of 1,588,293,255 shares of its common stock (consisting of 643,054,511 Class S shares, 798,498,578 Class I shares, 46,710,253 Class T shares, and 100,029,913 Class D shares) in the Offering and otherwise resulting in net proceeds of $17.5 billion to the Company as payment for such shares.

Subsequent to December 31, 2019, there was a global outbreak of a new strain of coronavirus, COVID-19 which continues to adversely impact global commercial activity and has contributed to significant volatility in financial markets. The global impact of the outbreak has been rapidly evolving, and as cases of the virus have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel, and limiting hours of operations of non-essential offices and retail centers. Such actions are creating disruption in global supply chains, and adversely impacting a number of industries, such as transportation, hospitality and entertainment. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of the novel coronavirus. Nevertheless, the novel coronavirus presents material uncertainty and risk with respect to the Company’s performance and financial results, such as the potential negative impact to occupancy at its properties, the potential closure of certain of its hotel assets, financing arrangements, increased costs of operations, decrease in values of its investments in Real Estate Debt, changes in law and/or regulation, and uncertainty regarding government and regulatory policy. The Company is unable to estimate the impact the novel coronavirus will have on its financial results at this time.

Schedule III—Real Estate and Accumulated Depreciation as of December 31, 2019 ($ in thousands)

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Industrial Properties:
Cold Storage Warehouse	Stockton, CA	(A)		$	14,488	$	50,262	$	—	$	—	$	14,488	$	50,262	$	64,750	$	(2,891	)	2018
Cold Storage Warehouse	Union City, CA	(A)			6,785		46,830		—		39		6,785		46,869		53,654		(2,151	)	2018
Cold Storage Warehouse	Aberdeen, MD	(A)			5,789		38,820		—		—		5,789		38,820		44,609		(2,006	)	2018
Cold Storage Warehouse	Atlanta, GA	(A)			3,134		30,130		—		1,528		3,134		31,658		34,792		(1,829	)	2018
Cold Storage Warehouse	Austin, TX	(A)			3,132		19,010		—		2,532		3,132		21,542		24,674		(894	)	2018
Cold Storage Warehouse	Stockton, CA	(A)			2,287		15,817		—		—		2,287		15,817		18,104		(891	)	2018
Powered Shell Warehouse	Ashburn, VA		25,563		12,796		24,209		—		—		12,796		24,209		37,005		(326	)	2019
Powered Shell Warehouse	Ashburn, VA		25,561		12,555		23,343		—		—		12,555		23,343		35,898		(316	)	2019
Powered Shell Warehouse	Ashburn, VA		18,676		12,475		23,205		—		—		12,475		23,205		35,680		(314	)	2019
Powered Shell Warehouse	Manassas, VA		25,347		4,807		36,314		—		—		4,807		36,314		41,121		(491	)	2019
Powered Shell Warehouse	Manassas, VA		17,378		3,342		25,131		—		—		3,342		25,131		28,473		(341	)	2019
Powered Shell Warehouse	Manassas, VA		23,739		4,842		36,535		—		—		4,842		36,535		41,377		(494	)	2019
Powered Shell Warehouse	Manassas, VA		17,336		3,184		23,956		—		—		3,184		23,956		27,140		(325	)	2019
Powered Shell Warehouse	Sterling, VA		24,270		12,955		23,239		—		—		12,955		23,239		36,194		(43	)	2019
Powered Shell Warehouse	Sterling, VA		24,630		12,999		23,318		—		—		12,999		23,318		36,317		(43	)	2019
Warehouse	Stockton, CA	(B)			10,079		21,240		—		482		10,079		21,722		31,801		(2,538	)	2017
Warehouse	Alpharetta, GA	(B)			998		7,705		—		17		998		7,722		8,720		(600	)	2017
Warehouse	Lithia Springs, GA	(B)			1,105		8,687		—		—		1,105		8,687		9,792		(792	)	2017
Warehouse	Austell, GA	(B)			5,344		97,862		—		1,343		5,344		99,205		104,549		(8,439	)	2017
Warehouse	Austell, GA	(B)			1,336		5,478		—		171		1,336		5,649		6,985		(596	)	2017
Warehouse	Austell, GA	(B)			1,342		5,761		—		174		1,342		5,935		7,277		(649	)	2017
Warehouse	Lombard, IL	(B)			483		3,489		—		46		483		3,535		4,018		(299	)	2017
Warehouse	Glendale Heights, IL	(B)			—		—		—		—		—		—		—		—		2017
Warehouse	Carol Stream, IL	(B)			1,184		4,511		—		—		1,184		4,511		5,695		(415	)	2017
Warehouse	Elgin, IL	(B)			620		2,733		—		74		620		2,807		3,427		(260	)	2017
Warehouse	Romeoville, IL	(B)			—		—		—		—		—		—		—		—		2017
Warehouse	Elgin, IL	(B)			1,118		5,172		—		41		1,118		5,213		6,331		(418	)	2017
Warehouse	Libertyville, IL	(B)			850		4,340		—		63		850		4,403		5,253		(435	)	2017
Warehouse	Carol Stream, IL	(B)			757		6,727		—		—		757		6,727		7,484		(543	)	2017
Warehouse	Addison, IL	(B)			858		5,683		—		1,995		858		7,678		8,536		(527	)	2017
Warehouse	Carol Stream, IL	(B)			837		5,902		—		25		837		5,927		6,764		(506	)	2017
Warehouse	Bensenville, IL	(B)			1,001		7,908		—		303		1,001		8,211		9,212		(655	)	2017
Warehouse	Glendale Heights, IL	(B)			416		2,837		—		—		416		2,837		3,253		(249	)	2017
Warehouse	Roselle, IL	(B)			1,166		6,812		—		—		1,166		6,812		7,978		(601	)	2017
Warehouse	Hanover Park, IL	(B)			1,090		5,342		—		—		1,090		5,342		6,432		(498	)	2017
Warehouse	Bolingbrook, IL	(B)			1,892		4,023		—		65		1,892		4,088		5,980		(408	)	2017
Warehouse	Bolingbrook, IL	(B)			2,313		9,953		—		135		2,313		10,088		12,401		(918	)	2017
Warehouse	Romeoville, IL	(B)			860		4,193		—		—		860		4,193		5,053		(336	)	2017
Warehouse	Houston, TX	(B)			632		2,404		—		40		632		2,444		3,076		(213	)	2017
Warehouse	Houston, TX	(B)			707		4,911		—		—		707		4,911		5,618		(430	)	2017

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Mechanicsburg, PA	(B)		1,467		21,649		—		—		1,467		21,649		23,116		(1,804	)	2017
Warehouse	Middletown, PA	(B)		866		12,492		—		—		866		12,492		13,358		(1,016	)	2017
Warehouse	Mechanicsburg, PA	(B)		399		2,984		—		5		399		2,989		3,388		(310	)	2017
Warehouse	Grand Prairie, TX	(B)		1,027		5,762		—		—		1,027		5,762		6,789		(587	)	2017
Warehouse	Dallas, TX	(B)		863		4,453		—		366		863		4,819		5,682		(435	)	2017
Warehouse	Grand Prairie, TX	(B)		1,052		6,266		—		30		1,052		6,296		7,348		(608	)	2017
Warehouse	Orlando, FL	(B)		937		5,149		—		20		937		5,169		6,106		(453	)	2017
Warehouse	Orlando, FL	(B)		590		4,064		—		—		590		4,064		4,654		(320	)	2017
Warehouse	Houston, TX	(B)		1,662		11,944		—		196		1,662		12,140		13,802		(1,002	)	2017
Warehouse	Houston, TX	(B)		1,645		12,220		—		74		1,645		12,294		13,939		(971	)	2017
Warehouse	Houston, TX	(B)		1,294		8,167		—		27		1,294		8,194		9,488		(658	)	2017
Warehouse	Houston, TX	(B)		1,149		5,722		—		—		1,149		5,722		6,871		(505	)	2017
Warehouse	Houston, TX	(B)		1,178		7,461		—		237		1,178		7,698		8,876		(613	)	2017
Warehouse	Allen, TX	(B)		807		5,147		—		19		807		5,166		5,973		(506	)	2017
Warehouse	Allen, TX	(B)		743		4,645		—		148		743		4,793		5,536		(443	)	2017
Warehouse	Allen, TX	(B)		924		5,866		—		—		924		5,866		6,790		(551	)	2017
Warehouse	Fairfield, NJ	(A)		1,232		2,755		—		3		1,232		2,758		3,990		(239	)	2017
Warehouse	Fairfield, NJ	(A)		1,767		4,676		—		62		1,767		4,738		6,505		(352	)	2017
Warehouse	Fairfield, NJ	(A)		3,223		4,180		—		6		3,223		4,186		7,409		(396	)	2017
Warehouse	Fairfield, NJ	(A)		1,093		4,074		—		23		1,093		4,097		5,190		(306	)	2017
Warehouse	Fairfield, NJ	(A)		1,101		1,674		—		59		1,101		1,733		2,834		(142	)	2017
Warehouse	Fairfield, NJ	(A)		1,170		1,900		—		5		1,170		1,905		3,075		(164	)	2017
Warehouse	Fairfield, NJ	(A)		4,219		5,936		—		33		4,219		5,969		10,188		(438	)	2017
Warehouse	Fairfield, NJ	(A)		4,725		6,013		—		7		4,725		6,020		10,745		(456	)	2017
Warehouse	Fairfield, NJ	(A)		2,131		2,408		—		6		2,131		2,414		4,545		(207	)	2017
Warehouse	Fairfield, NJ	(A)		4,194		8,677		—		7		4,194		8,684		12,878		(655	)	2017
Warehouse	Fairfield, NJ	(A)		843		1,375		—		8		843		1,383		2,226		(128	)	2017
Warehouse	Marietta, GA	(C)		1,604		5,329		—		146		1,604		5,475		7,079		(232	)	2018
Warehouse	Orlando, FL	(C)		3,052		15,804		—		119		3,052		15,923		18,975		(552	)	2018
Warehouse	Jacksonville, FL	(C)		2,658		13,081		—		—		2,658		13,081		15,739		(476	)	2018
Warehouse	Olive Branch, MS	(C)		2,111		8,074		—		—		2,111		8,074		10,185		(312	)	2018
Warehouse	Charlotte, NC	(C)		404		1,747		—		517		404		2,264		2,668		(74	)	2018
Warehouse	Jacksonville, FL	(C)		1,676		4,982		—		—		1,676		4,982		6,658		(204	)	2018
Warehouse	Jacksonville, FL	(C)		2,735		9,996		—		1,348		2,735		11,344		14,079		(387	)	2018
Warehouse	Marietta, GA	(C)		1,348		4,339		—		—		1,348		4,339		5,687		(176	)	2018
Warehouse	Roswell, GA	(A)		1,422		7,407		—		—		1,422		7,407		8,829		(348	)	2018
Warehouse	Marietta, GA	(C)		968		4,017		—		—		968		4,017		4,985		(148	)	2018
Warehouse	Miami, FL	(C)		930		200		—		403		930		603		1,533		(15	)	2018
Warehouse	Miami, FL	(C)		1,703		4,155		—		7		1,703		4,162		5,865		(136	)	2018
Warehouse	Miami, FL	(C)		5,879		18,428		—		3,949		5,879		22,377		28,256		(705	)	2018
Warehouse	Orlando, FL	(C)		4,120		19,411		—		—		4,120		19,411		23,531		(690	)	2018
Warehouse	Orlando, FL	(C)		1,628		7,773		—		—		1,628		7,773		9,401		(261	)	2018

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	La Vergne, TN	(C)			2,857		11,214		—		144		2,857		11,358		14,215		(447	)	2018
Warehouse	Miami, FL	(C)			2,398		5,742		—		64		2,398		5,806		8,204		(192	)	2018
Warehouse	Miami, FL	(C)			2,461		6,351		—		21		2,461		6,372		8,833		(209	)	2018
Warehouse	Miami, FL	(C)			3,011		6,953		—		57		3,011		7,010		10,021		(234	)	2018
Warehouse	Miami, FL	(C)			1,628		3,619		—		5		1,628		3,624		5,252		(123	)	2018
Warehouse	Miami, FL	(C)			2,260		4,504		—		407		2,260		4,911		7,171		(156	)	2018
Warehouse	Orlando, FL	(C)			1,819		6,452		—		721		1,819		7,173		8,992		(267	)	2018
Warehouse	La Vergne, TN	(C)			5,425		19,245		—		—		5,425		19,245		24,670		(955	)	2018
Warehouse	Memphis, TN	(A)			1,100		3,028		—		—		1,100		3,028		4,128		(140	)	2018
Warehouse	Memphis, TN	(A)			626		2,620		—		—		626		2,620		3,246		(97	)	2018
Warehouse	Memphis, TN	(A)			1,182		5,431		—		—		1,182		5,431		6,613		(207	)	2018
Warehouse	Memphis, TN	(A)			339		696		—		—		339		696		1,035		(33	)	2018
Warehouse	Tampa, FL	(C)			2,110		8,670		—		20		2,110		8,690		10,800		(331	)	2018
Warehouse	Jacksonville, FL	(C)			868		10,261		—		—		868		10,261		11,129		(334	)	2018
Warehouse	Winston-Salem, NC	(A)			954		4,952		—		—		954		4,952		5,906		(195	)	2018
Warehouse	Orlando, FL	(C)			4,894		18,533		—		—		4,894		18,533		23,427		(666	)	2018
Warehouse	Newport News, VA	(C)			1,085		6,140		—		—		1,085		6,140		7,225		(223	)	2018
Warehouse	Port Wentworth, GA	(C)			380		16,575		—		451		380		17,026		17,406		(520	)	2018
Warehouse	Hampton, VA	(C)			2,064		12,393		—		—		2,064		12,393		14,457		(462	)	2018
Warehouse	Port Wentworth, GA		26,594		6,739		23,769		—		5,681		6,739		29,450		36,189		(910	)	2018
Warehouse	Memphis, TN	(C)			2,533		5,951		—		—		2,533		5,951		8,484		(314	)	2018
Warehouse	Memphis, TN	(C)			299		749		—		—		299		749		1,048		(36	)	2018
Warehouse	Memphis, TN	(C)			1,445		3,940		—		—		1,445		3,940		5,385		(193	)	2018
Warehouse	Memphis, TN	(C)			371		799		—		—		371		799		1,170		(40	)	2018
Warehouse	Memphis, TN	(C)			1,793		2,170		—		—		1,793		2,170		3,963		(140	)	2018
Warehouse	Orlando, FL	(C)			4,241		13,551		—		163		4,241		13,714		17,955		(522	)	2018
Warehouse	Winston-Salem, NC	(A)			510		3,338		—		—		510		3,338		3,848		(121	)	2018
Warehouse	Winston-Salem, NC	(A)			441		1,361		—		10		441		1,371		1,812		(68	)	2018
Warehouse	Winston-Salem, NC	(A)			857		6,272		—		—		857		6,272		7,129		(230	)	2018
Warehouse	Atlanta, GA	(A)			1,284		6,592		—		—		1,284		6,592		7,876		(257	)	2018
Warehouse	Atlanta, GA	(A)			1,096		9,351		—		18		1,096		9,369		10,465		(324	)	2018
Warehouse	Charlotte, NC	(C)			689		3,167		—		—		689		3,167		3,856		(125	)	2018
Warehouse	Wesley Chapel, FL	(A)			1,566		2,284		—		123		1,566		2,407		3,973		(130	)	2018
Warehouse	Wesley Chapel, FL	(A)			277		3,914		—		—		277		3,914		4,191		(136	)	2018
Warehouse	Wesley Chapel, FL	(A)			228		9,235		—		—		228		9,235		9,463		(288	)	2018
Warehouse	Davenport, FL	(C)			3,560		14,868		—		129		3,560		14,997		18,557		(511	)	2018
Warehouse	Davenport, FL	(C)			4,763		22,356		—		—		4,763		22,356		27,119		(793	)	2018
Warehouse	Davenport, FL	(C)			1,454		8,874		—		792		1,454		9,666		11,120		(407	)	2018
Warehouse	Orlando, FL	(C)			1,549		5,482		—		9		1,549		5,491		7,040		(187	)	2018
Warehouse	Wesley Chapel, FL	(A)			1,283		5,023		—		—		1,283		5,023		6,306		(191	)	2018
Warehouse	Wesley Chapel, FL	(A)			1,757		8,021		—		—		1,757		8,021		9,778		(313	)	2018

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Orlando, FL	(C)		1,444		4,115		—		41		1,444		4,156		5,600		(145	)	2018
Warehouse	Orlando, FL	(C)		1,549		2,334		—		—		1,549		2,334		3,883		(93	)	2018
Warehouse	Richmond, VA	(A)		888		6,888		—		352		888		7,240		8,128		(255	)	2018
Warehouse	Richmond, VA	(A)		3,413		21,839		—		—		3,413		21,839		25,252		(804	)	2018
Warehouse	Memphis, TN	(C)		1,777		4,785		—		—		1,777		4,785		6,562		(219	)	2018
Warehouse	Memphis, TN	(C)		1,360		4,721		—		—		1,360		4,721		6,081		(195	)	2018
Warehouse	Memphis, TN	(C)		1,289		5,579		—		—		1,289		5,579		6,868		(237	)	2018
Warehouse	Memphis, TN	(C)		1,323		4,540		—		—		1,323		4,540		5,863		(195	)	2018
Warehouse	Memphis, TN	(C)		1,649		5,985		—		—		1,649		5,985		7,634		(249	)	2018
Warehouse	Piedmont, SC	(C)		1,165		4,802		—		9		1,165		4,811		5,976		(196	)	2018
Warehouse	Rural Hall, NC	(C)		1,226		8,023		—		1,184		1,226		9,207		10,433		(339	)	2018
Warehouse	Raleigh, NC	(C)		915		5,603		—		21		915		5,624		6,539		(203	)	2018
Warehouse	Raleigh, NC	(C)		749		6,459		—		—		749		6,459		7,208		(234	)	2018
Warehouse	Charlotte, NC	(C)		437		1,577		—		64		437		1,641		2,078		(78	)	2018
Warehouse	Rural Hall, NC	(C)		1,432		8,694		—		—		1,432		8,694		10,126		(339	)	2018
Warehouse	Sandston, VA	(C)		1,799		9,087		—		125		1,799		9,212		11,011		(357	)	2018
Warehouse	Charlotte, NC	(C)		302		3,195		—		—		302		3,195		3,497		(106	)	2018
Warehouse	Memphis, TN	(C)		2,312		5,978		—		52		2,312		6,030		8,342		(279	)	2018
Warehouse	Richmond, VA	(A)		515		5,380		—		19		515		5,399		5,914		(253	)	2018
Warehouse	Rural Hall, NC	(C)		1,971		9,903		—		—		1,971		9,903		11,874		(401	)	2018
Warehouse	Memphis, TN	(C)		2,207		6,846		—		51		2,207		6,897		9,104		(306	)	2018
Warehouse	Sandston, VA	(C)		897		3,903		—		—		897		3,903		4,800		(153	)	2018
Warehouse	Norcross, GA	(C)		973		5,466		—		—		973		5,466		6,439		(205	)	2018
Warehouse	Rural Hall, NC	(C)		416		2,489		—		—		416		2,489		2,905		(103	)	2018
Warehouse	Jacksonville, FL	(C)		1,163		5,239		—		—		1,163		5,239		6,402		(195	)	2018
Warehouse	Norcross, GA	(C)		748		4,333		—		—		748		4,333		5,081		(166	)	2018
Warehouse	Norcross, GA	(C)		674		2,730		—		—		674		2,730		3,404		(115	)	2018
Warehouse	Norcross, GA	(C)		840		4,012		—		—		840		4,012		4,852		(156	)	2018
Warehouse	Charlotte, NC	(C)		389		2,574		—		15		389		2,589		2,978		(95	)	2018
Warehouse	Louisville, KY	(A)		3,607		10,097		—		1,334		3,607		11,431		15,038		(450	)	2018
Warehouse	Norcross, GA	(A)		1,074		4,347		—		—		1,074		4,347		5,421		(199	)	2018
Warehouse	Norcross, GA	(A)		368		2,026		—		2		368		2,028		2,396		(79	)	2018
Warehouse	Norcross, GA	(A)		336		1,763		—		—		336		1,763		2,099		(74	)	2018
Warehouse	Memphis, TN	—		2,757		5,480		—		—		2,757		5,480		8,237		(281	)	2018
Warehouse	Norcross, GA	(A)		733		4,521		—		25		733		4,546		5,279		(164	)	2018
Warehouse	Norcross, GA	(A)		562		2,308		—		—		562		2,308		2,870		(97	)	2018
Warehouse	Norcross, GA	(A)		397		2,235		—		—		397		2,235		2,632		(99	)	2018
Warehouse	Norcross, GA	(A)		429		2,046		—		4		429		2,050		2,479		(89	)	2018
Warehouse	Norcross, GA	(A)		563		875		—		83		563		958		1,521		(56	)	2018
Warehouse	Memphis, TN	(A)		2,060		6,344		—		507		2,060		6,851		8,911		(343	)	2018
Warehouse	Memphis, TN	(A)		1,839		8,067		—		—		1,839		8,067		9,906		(399	)	2018

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Memphis, TN	(A)		2,110		5,437		—		—		2,110		5,437		7,547		(305	)	2018
Warehouse	Memphis, TN	(A)		1,168		7,233		—		53		1,168		7,286		8,454		(277	)	2018
Warehouse	Charlotte, NC	(C)		601		3,495		—		—		601		3,495		4,096		(130	)	2018
Warehouse	Richmond, VA	(C)		1,464		11,053		—		—		1,464		11,053		12,517		(403	)	2018
Warehouse	Kissimmee, FL	(C)		212		9,857		—		—		212		9,857		10,069		(330	)	2018
Warehouse	Jacksonville, FL	(C)		2,505		15,947		—		—		2,505		15,947		18,452		(578	)	2018
Warehouse	Orlando, FL	(C)		3,684		18,694		—		—		3,684		18,694		22,378		(705	)	2018
Warehouse	Jacksonville, FL	(C)		610		4,613		—		—		610		4,613		5,223		(163	)	2018
Warehouse	Miami, FL	(C)		954		2,593		—		10		954		2,603		3,557		(86	)	2018
Warehouse	Tucker, GA	(D)		879		3,391		—		—		879		3,391		4,270		(131	)	2018
Warehouse	Conyers, GA	(D)		634		4,435		—		—		634		4,435		5,069		(158	)	2018
Warehouse	Tucker, GA	(D)		505		3,056		—		5		505		3,061		3,566		(111	)	2018
Warehouse	Atlanta, GA	(D)		418		4,462		—		—		418		4,462		4,880		(154	)	2018
Warehouse	Atlanta, GA	(D)		634		6,064		—		—		634		6,064		6,698		(204	)	2018
Warehouse	Tucker, GA	(D)		1,199		3,713		—		230		1,199		3,943		5,142		(158	)	2018
Warehouse	Tucker, GA	(D)		762		3,039		—		—		762		3,039		3,801		(101	)	2018
Warehouse	Tucker, GA	(D)		1,167		4,070		—		—		1,167		4,070		5,237		(153	)	2018
Warehouse	Stockton, CA	(D)		11,025		73,084		—		—		11,025		73,084		84,109		(2,653	)	2017
Warehouse	Mechanicsburg, PA	(D)		1,184		10,393		—		858		1,184		11,251		12,435		(358	)	2019
Warehouse	Roseville State, MN	(D)		1,174		5,598		—		—		1,174		5,598		6,772		(136	)	2019
Warehouse	New Brighton, MN	(D)		1,828		5,281		—		77		1,828		5,358		7,186		(158	)	2019
Warehouse	St. Paul, MN	(D)		2,780		4,330		—		—		2,780		4,330		7,110		(120	)	2019
Warehouse	New Brighton, MN	(D)		2,088		6,555		—		—		2,088		6,555		8,643		(194	)	2019
Warehouse	New Brighton, MN	(D)		1,231		4,252		—		—		1,231		4,252		5,483		(106	)	2019
Warehouse	New Brighton, MN	(D)		1,385		5,934		—		—		1,385		5,934		7,319		(346	)	2019
Warehouse	New Brighton, MN	(D)		2,062		6,553		—		18		2,062		6,571		8,633		(160	)	2019
Warehouse	New Brighton, MN	(D)		431		1,927		—		—		431		1,927		2,358		(58	)	2019
Warehouse	New Brighton, MN	(D)		362		4,054		—		—		362		4,054		4,416		(105	)	2019
Warehouse	New Brighton, MN	(D)		1,611		3,909		—		130		1,611		4,039		5,650		(117	)	2019
Warehouse	New Brighton, MN	(D)		1,111		2,811		—		—		1,111		2,811		3,922		(77	)	2019
Warehouse	New Brighton, MN	(D)		790		2,478		—		—		790		2,478		3,268		(67	)	2019
Warehouse	New Brighton, MN	(D)		664		2,690		—		—		664		2,690		3,354		(64	)	2019
Warehouse	New Brighton, MN	(D)		537		1,508		—		—		537		1,508		2,045		(36	)	2019
Warehouse	Golden Valley, MN	(D)		1,466		10,577		—		40		1,466		10,617		12,083		(275	)	2019
Warehouse	Golden Valley, MN	(D)		2,176		1,789		—		—		2,176		1,789		3,965		(76	)	2019
Warehouse	Brooklyn Park, MN	(D)		2,616		10,434		—		39		2,616		10,473		13,089		(302	)	2019
Warehouse	Minneapolis, MN	(D)		2,721		9,283		—		36		2,721		9,319		12,040		(215	)	2019
Warehouse	Brooklyn Park, MN	(D)		1,505		3,969		—		—		1,505		3,969		5,474		(111	)	2019
Warehouse	Crystal, MN	(D)		1,859		6,354		—		—		1,859		6,354		8,213		(179	)	2019
Warehouse	Brooklyn Center, MN	(D)		1,679		4,694		—		—		1,679		4,694		6,373		(125	)	2019
Warehouse	Minneapolis, MN	(D)		4,010		10,777		—		54		4,010		10,831		14,841		(272	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Blaine, MN	(D)		4,514		3,456		—		—		4,514		3,456		7,970		(110	)	2019
Warehouse	Blaine, MN	(D)		2,378		2,723		—		—		2,378		2,723		5,101		(77	)	2019
Warehouse	Fridley, MN	(D)		2,043		5,005		—		—		2,043		5,005		7,048		(146	)	2019
Warehouse	Burnsville, MN	(D)		1,729		3,780		—		—		1,729		3,780		5,509		(107	)	2019
Warehouse	Burnsville, MN	(D)		1,935		6,614		—		—		1,935		6,614		8,549		(176	)	2019
Warehouse	Eagan, MN	(D)		1,942		7,544		—		36		1,942		7,580		9,522		(168	)	2019
Warehouse	Burnsville, MN	(D)		1,094		3,017		—		—		1,094		3,017		4,111		(80	)	2019
Warehouse	Burnsville, MN	(D)		1,196		2,762		—		—		1,196		2,762		3,958		(83	)	2019
Warehouse	Eagan, MN	(D)		1,302		4,099		—		—		1,302		4,099		5,401		(117	)	2019
Warehouse	Eagan, MN	(D)		2,296		7,344		—		19		2,296		7,363		9,659		(197	)	2019
Warehouse	Eagan, MN	(D)		2,121		4,488		—		6		2,121		4,494		6,615		(122	)	2019
Warehouse	Eagan, MN	(D)		1,558		5,259		—		—		1,558		5,259		6,817		(139	)	2019
Warehouse	Groveport, OH	(E)		4,606		43,877		—		203		4,606		44,080		48,686		(2,773	)	2018
Warehouse	Plainfield, IN	(E)		4,956		30,461		—		203		4,956		30,664		35,620		(1,708	)	2018
Warehouse	Addison, IL	(E)		6,603		32,142		—		615		6,603		32,757		39,360		(1,979	)	2018
Warehouse	Crest Hill, IL	(E)		5,957		32,388		—		2,394		5,957		34,782		40,739		(2,069	)	2018
Warehouse	Landover, MD	(E)		9,479		24,030		—		1,227		9,479		25,257		34,736		(1,474	)	2018
Warehouse	Northlake, TX	(E)		3,898		34,109		—		203		3,898		34,312		38,210		(1,935	)	2018
Warehouse	Glen Rock, PA	(E)		6,792		28,003		—		—		6,792		28,003		34,795		(1,917	)	2018
Warehouse	Niles, IL	(E)		11,223		16,678		—		—		11,223		16,678		27,901		(988	)	2018
Warehouse	Davenport, FL	(E)		3,126		22,481		—		78		3,126		22,559		25,685		(1,446	)	2018
Warehouse	Clayton, FL	(E)		—		—		—		—		—		—		—		—		2018
Warehouse	Englewood, CO	(E)		7,097		17,420		—		—		7,097		17,420		24,517		(1,195	)	2018
Warehouse	Englewood, CO	(E)		6,948		17,281		—		1		6,948		17,282		24,230		(1,182	)	2018
Warehouse	Greenwood, IN	(E)		2,174		21,869		—		42		2,174		21,911		24,085		(1,385	)	2018
Warehouse	Hodgkins, IL	(E)		7,040		21,744		—		—		7,040		21,744		28,784		(1,152	)	2018
Warehouse	Lithia Springs, GA	(E)		5,594		18,685		—		27		5,594		18,712		24,306		(1,142	)	2018
Warehouse	Englewood, CO	(E)		6,282		15,371		—		95		6,282		15,466		21,748		(1,012	)	2018
Warehouse	Ontario, CA	(E)		5,766		16,688		—		112		5,766		16,800		22,566		(955	)	2018
Warehouse	Puyallup, WA	(E)		3,611		18,207		—		—		3,611		18,207		21,818		(987	)	2018
Warehouse	Carson, CA	(E)		15,959		7,447		—		—		15,959		7,447		23,406		(475	)	2018
Warehouse	Naperville, IL	(E)		4,125		17,768		—		—		4,125		17,768		21,893		(1,144	)	2018
Warehouse	Coppell, TX	(E)		1,841		14,694		—		1,829		1,841		16,523		18,364		(1,571	)	2018
Warehouse	Austell, GA	(E)		2,598		17,964		—		505		2,598		18,469		21,067		(1,029	)	2018
Warehouse	Winchester, VA	(E)		3,347		17,763		—		140		3,347		17,903		21,250		(992	)	2018
Warehouse	Hatfield, PA	(E)		2,431		16,102		—		150		2,431		16,252		18,683		(895	)	2018
Warehouse	Lebanon, IN	(E)		2,273		18,491		—		1,198		2,273		19,689		21,962		(1,109	)	2018
Warehouse	Rancho Cucamonga, CA	(E)		4,962		13,018		—		54		4,962		13,072		18,034		(756	)	2018
Warehouse	San Bernardino, CA	(E)		7,363		10,063		—		—		7,363		10,063		17,426		(577	)	2018
Warehouse	Mahwah, NJ	(E)		3,672		11,139		—		—		3,672		11,139		14,811		(667	)	2018
Warehouse	Irving, TX	(E)		3,858		14,623		—		23		3,858		14,646		18,504		(858	)	2018

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Somerset, NJ	(E)		11,100		5,044		—		—		11,100		5,044		16,144		(641	)	2018
Warehouse	Tampa, FL	(E)		2,558		18,601		—		—		2,558		18,601		21,159		(1,022	)	2018
Warehouse	Houston, TX	(E)		1,918		14,391		—		414		1,918		14,805		16,723		(900	)	2018
Warehouse	Logan Township, NJ	(E)		3,713		13,206		—		—		3,713		13,206		16,919		(937	)	2018
Warehouse	Groveport, OH	(E)		2,455		14,574		—		1,326		2,455		15,900		18,355		(946	)	2018
Warehouse	Sunrise, FL	(E)		6,916		10,491		—		946		6,916		11,437		18,353		(681	)	2018
Warehouse	Mahwah, NJ	(E)		3,647		11,882		—		—		3,647		11,882		15,529		(682	)	2018
Warehouse	Winchester, VA	(E)		1,830		15,296		—		—		1,830		15,296		17,126		(944	)	2018
Warehouse	Fairburn, GA	(E)		1,034		15,747		—		—		1,034		15,747		16,781		(1,061	)	2018
Warehouse	West Chicago, IL	(E)		3,055		12,863		—		303		3,055		13,166		16,221		(800	)	2018
Warehouse	Rialto, CA	(E)		4,538		10,073		—		—		4,538		10,073		14,611		(591	)	2018
Warehouse	Grand Prairie, TX	(E)		2,915		13,886		—		1,496		2,915		15,382		18,297		(734	)	2018
Warehouse	Mahwah, NJ	(E)		4,226		9,939		—		—		4,226		9,939		14,165		(737	)	2018
Warehouse	Tampa, FL	(E)		3,171		11,017		—		—		3,171		11,017		14,188		(624	)	2018
Warehouse	Grand Prairie, TX	(E)		2,868		12,244		—		—		2,868		12,244		15,112		(713	)	2018
Warehouse	Irving, TX	(E)		2,663		7,457		—		13		2,663		7,470		10,133		(465	)	2018
Warehouse	Fort Worth, TX	(E)		1,744		11,298		—		—		1,744		11,298		13,042		(673	)	2018
Warehouse	West Chicago, IL	(E)		3,091		6,985		—		558		3,091		7,543		10,634		(635	)	2018
Warehouse	Alsip, IL	(E)		3,375		10,713		—		774		3,375		11,487		14,862		(664	)	2018
Warehouse	Plano, TX	(E)		1,640		10,542		—		—		1,640		10,542		12,182		(623	)	2018
Warehouse	Mahwah, NJ	(E)		4,357		8,369		—		—		4,357		8,369		12,726		(634	)	2018
Warehouse	Elkridge, MD	(E)		2,165		9,448		—		263		2,165		9,711		11,876		(539	)	2018
Warehouse	Naperville, IL	(E)		2,959		8,247		—		374		2,959		8,621		11,580		(703	)	2018
Warehouse	Chicago, IL	(E)		1,292		9,416		—		—		1,292		9,416		10,708		(533	)	2018
Warehouse	Simi Valley, CA	(E)		3,450		7,390		—		487		3,450		7,877		11,327		(489	)	2018
Warehouse	West Chicago, IL	(E)		2,631		6,142		—		—		2,631		6,142		8,773		(457	)	2018
Warehouse	Dallas, TX	(E)		2,874		8,296		—		—		2,874		8,296		11,170		(587	)	2018
Warehouse	Arlington Heights, IL	(E)		1,957		8,373		—		100		1,957		8,473		10,430		(455	)	2018
Warehouse	Tacoma, WA	(E)		2,380		10,368		—		—		2,380		10,368		12,748		(611	)	2018
Warehouse	Elkridge, MD	(E)		1,873		9,918		—		246		1,873		10,164		12,037		(749	)	2018
Warehouse	Oakland, NJ	(E)		1,725		8,336		—		—		1,725		8,336		10,061		(491	)	2018
Warehouse	Aurora, CO	(E)		2,185		8,706		—		14		2,185		8,720		10,905		(582	)	2018
Warehouse	Devens, MA	(E)		2,520		8,604		—		—		2,520		8,604		11,124		(654	)	2018
Warehouse	St. Charles, IL	(E)		2,255		7,559		—		—		2,255		7,559		9,814		(581	)	2018
Warehouse	Exton, PA	(E)		2,946		7,647		—		—		2,946		7,647		10,593		(549	)	2018
Warehouse	Carrollton, TX	(E)		1,382		9,429		—		—		1,382		9,429		10,811		(569	)	2018
Warehouse	Denver, CO	(E)		2,212		9,525		—		69		2,212		9,594		11,806		(572	)	2018
Warehouse	Phoenix, AZ	(E)		3,406		7,520		—		68		3,406		7,588		10,994		(540	)	2018
Warehouse	Landover, MD	(E)		2,848		6,215		—		106		2,848		6,321		9,169		(449	)	2018
Warehouse	San Bernardino, CA	(E)		5,325		6,349		—		—		5,325		6,349		11,674		(448	)	2018
Warehouse	Franklin Park, IL	(E)		3,254		7,017		—		103		3,254		7,120		10,374		(400	)	2018

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Landover, MD	(E)		2,790		6,526		—		81		2,790		6,607		9,397		(448	)	2018
Warehouse	Houston, TX	(E)		1,207		8,299		—		812		1,207		9,111		10,318		(560	)	2018
Warehouse	Charlotte, NC	(E)		1,465		9,055		—		331		1,465		9,386		10,851		(545	)	2018
Warehouse	Houston, TX	(E)		1,481		8,418		—		2,308		1,481		10,726		12,207		(546	)	2018
Warehouse	Farmers Branch, TX	(E)		1,328		8,774		—		—		1,328		8,774		10,102		(543	)	2018
Warehouse	Batavia, IL	(E)		1,407		8,221		—		60		1,407		8,281		9,688		(610	)	2018
Warehouse	Houston, TX	(E)		1,179		7,848		—		785		1,179		8,633		9,812		(468	)	2018
Warehouse	Houston, TX	(E)		1,204		8,334		—		751		1,204		9,085		10,289		(540	)	2018
Warehouse	Farmers Branch, TX	(E)		1,174		7,951		—		—		1,174		7,951		9,125		(539	)	2018
Warehouse	Erlanger, KY	(E)		1,431		7,595		—		145		1,431		7,740		9,171		(506	)	2018
Warehouse	Grand Prairie, TX	(E)		1,582		8,328		—		174		1,582		8,502		10,084		(524	)	2018
Warehouse	Upper Chichester, PA	(E)		1,746		6,924		—		25		1,746		6,949		8,695		(427	)	2018
Warehouse	Baltimore, MD	(E)		1,001		6,016		—		4		1,001		6,020		7,021		(411	)	2018
Warehouse	Federal Way, WA	(E)		2,687		6,465		—		401		2,687		6,866		9,553		(440	)	2018
Warehouse	Carrollton, TX	(E)		1,336		7,407		—		—		1,336		7,407		8,743		(434	)	2018
Warehouse	San Diego, CA	(E)		3,284		6,130		—		—		3,284		6,130		9,414		(343	)	2018
Warehouse	Mahwah, NJ	(E)		2,812		5,786		—		—		2,812		5,786		8,598		(420	)	2018
Warehouse	Houston, TX	(E)		1,163		6,738		—		—		1,163		6,738		7,901		(432	)	2018
Warehouse	Erlanger, KY	(E)		925		5,934		—		158		925		6,092		7,017		(407	)	2018
Warehouse	Baltimore, MD	(E)		1,259		6,430		—		—		1,259		6,430		7,689		(423	)	2018
Warehouse	Auburn, WA	(E)		1,991		6,873		—		—		1,991		6,873		8,864		(391	)	2018
Warehouse	Largo, FL	(E)		2,052		5,554		—		—		2,052		5,554		7,606		(398	)	2018
Warehouse	Mechanicsburg, PA	(E)		1,257		5,981		—		—		1,257		5,981		7,238		(390	)	2018
Warehouse	Annapolis Junction, MD	(E)		1,227		5,022		—		1,141		1,227		6,163		7,390		(523	)	2018
Warehouse	San Bernardino, CA	(E)		2,023		5,767		—		—		2,023		5,767		7,790		(355	)	2018
Warehouse	Frederick, MD	(E)		1,008		5,549		—		—		1,008		5,549		6,557		(310	)	2018
Warehouse	Elk Grove Village, IL	(E)		3,150		3,193		—		10		3,150		3,203		6,353		(223	)	2018
Warehouse	Sanford, FL	(E)		1,137		5,628		—		—		1,137		5,628		6,765		(349	)	2018
Warehouse	Erlanger, KY	(E)		855		5,671		—		80		855		5,751		6,606		(354	)	2018
Warehouse	Carrollton, TX	(E)		956		5,467		—		—		956		5,467		6,423		(389	)	2018
Warehouse	Aurora, CO	(E)		1,116		5,455		—		—		1,116		5,455		6,571		(357	)	2018
Warehouse	Coppell, TX	(E)		799		4,848		—		1,800		799		6,648		7,447		(498	)	2018
Warehouse	Lakewood, WA	(E)		618		6,264		—		—		618		6,264		6,882		(362	)	2018
Warehouse	Wood Dale, IL	(E)		2,460		3,404		—		—		2,460		3,404		5,864		(214	)	2018
Warehouse	Addison, TX	(E)		928		5,880		—		—		928		5,880		6,808		(413	)	2018
Warehouse	Gurnee, IL	(E)		954		4,418		—		449		954		4,867		5,821		(301	)	2018
Warehouse	Aurora, CO	(E)		1,135		4,788		—		—		1,135		4,788		5,923		(302	)	2018
Warehouse	Sanford, FL	(E)		893		5,053		—		—		893		5,053		5,946		(325	)	2018
Warehouse	Baltimore, MD	(E)		905		4,454		—		334		905		4,788		5,693		(339	)	2018
Warehouse	Dallas, TX	(E)		1,432		4,942		—		—		1,432		4,942		6,374		(376	)	2018
Warehouse	Wood Dale, IL	(E)		2,312		3,814		—		—		2,312		3,814		6,126		(242	)	2018

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Baltimore, MD	(E)		957		4,398		—		48		957		4,446		5,403		(360	)	2018
Warehouse	Simi Valley, CA	(E)		1,558		4,273		—		—		1,558		4,273		5,831		(259	)	2018
Warehouse	Baltimore, MD	(E)		913		3,281		—		—		913		3,281		4,194		(240	)	2018
Warehouse	Erlanger, KY	(E)		798		4,821		—		23		798		4,844		5,642		(295	)	2018
Warehouse	San Bernardino, CA	(E)		1,686		3,826		—		90		1,686		3,916		5,602		(248	)	2018
Warehouse	Erlanger, KY	(E)		628		5,117		—		143		628		5,260		5,888		(330	)	2018
Warehouse	Houston, TX	(E)		1,022		3,917		—		34		1,022		3,951		4,973		(262	)	2018
Warehouse	Grand Prairie, TX	(E)		1,606		3,708		—		118		1,606		3,826		5,432		(276	)	2018
Warehouse	Fort Lauderdale, FL	(E)		1,347		3,889		—		98		1,347		3,987		5,334		(230	)	2018
Warehouse	Garland, TX	(E)		907		4,097		—		—		907		4,097		5,004		(267	)	2018
Warehouse	Houston, TX	(E)		1,045		3,795		—		—		1,045		3,795		4,840		(228	)	2018
Warehouse	Rosedale, MD	(E)		1,214		3,140		—		12		1,214		3,152		4,366		(206	)	2018
Warehouse	Itasca, IL	(E)		981		3,751		—		—		981		3,751		4,732		(226	)	2018
Warehouse	Clearwater, FL	(E)		1,357		3,355		—		—		1,357		3,355		4,712		(209	)	2018
Warehouse	Tampa, FL	(E)		787		3,584		—		—		787		3,584		4,371		(252	)	2018
Warehouse	San Diego, CA	(E)		1,749		3,260		—		325		1,749		3,585		5,334		(212	)	2018
Warehouse	Elk Grove Village, IL	(E)		1,696		2,831		—		—		1,696		2,831		4,527		(190	)	2018
Warehouse	Wood Dale, IL	(E)		1,796		2,784		—		125		1,796		2,909		4,705		(202	)	2018
Warehouse	Fort Worth, TX	(E)		691		4,545		—		—		691		4,545		5,236		(333	)	2018
Warehouse	Suwanee, GA	(E)		305		4,057		—		255		305		4,312		4,617		(262	)	2018
Warehouse	Baltimore, MD	(E)		705		2,828		—		80		705		2,908		3,613		(197	)	2018
Warehouse	West Chicago, IL	(E)		1,308		2,906		—		—		1,308		2,906		4,214		(241	)	2018
Warehouse	San Bernardino, CA	(E)		1,513		2,665		—		179		1,513		2,844		4,357		(186	)	2018
Warehouse	West Chester, PA	(E)		769		2,626		—		—		769		2,626		3,395		(163	)	2018
Warehouse	Suwanee, GA	(E)		271		3,484		—		—		271		3,484		3,755		(206	)	2018
Warehouse	Frederick, MD	(E)		593		3,222		—		32		593		3,254		3,847		(213	)	2018
Warehouse	Frederick, MD	(E)		425		2,522		—		584		425		3,106		3,531		(232	)	2018
Warehouse	Frederick, MD	(E)		441		2,526		—		85		441		2,611		3,052		(160	)	2018
Warehouse	Dallas, TX	(E)		903		2,774		—		—		903		2,774		3,677		(179	)	2018
Warehouse	Dallas, TX	(E)		757		2,352		—		—		757		2,352		3,109		(153	)	2018
Warehouse	Simi Valley, CA	(E)		813		2,740		—		14		813		2,754		3,567		(164	)	2018
Warehouse	Erlanger, KY	(E)		278		2,001		—		47		278		2,048		2,326		(126	)	2018
Warehouse	West Chicago, IL	(E)		719		2,247		—		—		719		2,247		2,966		(150	)	2018
Warehouse	Dallas, TX	(E)		800		2,484		—		24		800		2,508		3,308		(161	)	2018
Warehouse	Erlanger, KY	(E)		323		2,586		—		22		323		2,608		2,931		(166	)	2018
Warehouse	Jacksonville, FL	(B)		3,056		20,161		—		44		3,056		20,205		23,261		(1,201	)	2017
Warehouse	Jonesboro, GA	(B)		2,804		14,537		—		—		2,804		14,537		17,341		(1,111	)	2017
Warehouse	La Vergne, TN	(B)		3,574		16,037		—		210		3,574		16,247		19,821		(1,264	)	2017
Warehouse	Jacksonville, FL	(B)		2,261		15,933		—		—		2,261		15,933		18,194		(1,058	)	2017
Warehouse	Jacksonville, FL	(B)		3,291		22,985		—		29		3,291		23,014		26,305		(1,559	)	2017
Warehouse	Aurora, IL	(B)		17,424		43,812		—		—		17,424		43,812		61,236		(3,071	)	2018
Warehouse	Aurora, IL	(B)		8,455		34,026		—		—		8,455		34,026		42,481		(2,169	)	2018
Warehouse	Aurora, IL	(B)		10,116		23,150		—		—		10,116		23,150		33,266		(1,793	)	2018

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Hebron, KY	(F)		1,551		10,318		—		—		1,551		10,318		11,869		(112	)	2019
Warehouse	Hebron, KY	(F)		1,106		4,903		—		—		1,106		4,903		6,009		(62	)	2019
Warehouse	Hebron, KY	(F)		2,056		7,744		—		—		2,056		7,744		9,800		(159	)	2019
Warehouse	Hebron, KY	(F)		1,181		9,455		—		—		1,181		9,455		10,636		(137	)	2019
Warehouse	Cincinnati, OH	(F)		2,937		27,172		—		—		2,937		27,172		30,109		(292	)	2019
Warehouse	Cincinnati, OH	(F)		1,114		8,004		—		—		1,114		8,004		9,118		(89	)	2019
Warehouse	West Chester, OH	(F)		947		5,888		—		—		947		5,888		6,835		(76	)	2019
Warehouse	West Chester, OH	(F)		812		3,623		—		38		812		3,661		4,473		(50	)	2019
Warehouse	Grove City, OH	(F)		1,532		14,716		—		—		1,532		14,716		16,248		(176	)	2019
Warehouse	Grove City, OH	(F)		1,364		10,919		—		—		1,364		10,919		12,283		(168	)	2019
Warehouse	Grove City, OH	(F)		1,501		11,155		—		—		1,501		11,155		12,656		(164	)	2019
Warehouse	Indianapolis, IN	(F)		1,775		5,410		—		—		1,775		5,410		7,185		(101	)	2019
Warehouse	Indianapolis, IN	(F)		2,828		10,418		—		—		2,828		10,418		13,246		(176	)	2019
Warehouse	Indianapolis, IN	(F)		3,613		15,816		—		—		3,613		15,816		19,429		(247	)	2019
Warehouse	Indianapolis, IN	(F)		1,904		5,350		—		—		1,904		5,350		7,254		(70	)	2019
Warehouse	Indianapolis, IN	(F)		1,248		3,266		—		—		1,248		3,266		4,514		(57	)	2019
Warehouse	Indianapolis, IN	(F)		5,841		15,477		—		—		5,841		15,477		21,318		(386	)	2019
Warehouse	Indianapolis, IN	(F)		1,244		4,790		—		—		1,244		4,790		6,034		(137	)	2019
Warehouse	Stone Mountain, GA	(G)		2,536		2,732		—		—		2,536		2,732		5,268		(107	)	2019
Warehouse	Stone Mountain, GA	(G)		2,520		2,000		—		—		2,520		2,000		4,520		(89	)	2019
Warehouse	Stone Mountain, GA	(G)		2,559		1,748		—		—		2,559		1,748		4,307		(49	)	2019
Warehouse	Stone Mountain, GA	(G)		4,677		4,419		—		—		4,677		4,419		9,096		(127	)	2019
Warehouse	Stone Mountain, GA	(G)		1,647		2,234		—		—		1,647		2,234		3,881		(81	)	2019
Warehouse	Stone Mountain, GA	(G)		2,590		3,873		—		—		2,590		3,873		6,463		(95	)	2019
Warehouse	Stone Mountain, GA	(G)		867		1,173		—		—		867		1,173		2,040		(31	)	2019
Warehouse	Stone Mountain, GA	(G)		927		1,182		—		—		927		1,182		2,109		(37	)	2019
Warehouse	Stone Mountain, GA	(G)		890		940		—		—		890		940		1,830		(26	)	2019
Warehouse	Stone Mountain, GA	(G)		2,411		4,065		—		19		2,411		4,084		6,495		(108	)	2019
Warehouse	Stone Mountain, GA	(G)		992		1,846		—		—		992		1,846		2,838		(49	)	2019
Warehouse	Stone Mountain, GA	(G)		419		696		—		—		419		696		1,115		(18	)	2019
Warehouse	Stone Mountain, GA	(G)		222		328		—		—		222		328		550		(10	)	2019
Warehouse	Stone Mountain, GA	(G)		907		1,717		—		—		907		1,717		2,624		(43	)	2019
Warehouse	Stone Mountain, GA	(G)		957		1,757		—		—		957		1,757		2,714		(45	)	2019
Warehouse	Stone Mountain, GA	(G)		3,334		7,998		—		—		3,334		7,998		11,332		(182	)	2019
Warehouse	Stone Mountain, GA	(G)		5,039		8,078		—		—		5,039		8,078		13,117		(211	)	2019
Warehouse	Stone Mountain, GA	(G)		321		508		—		—		321		508		829		(15	)	2019
Warehouse	Stone Mountain, GA	(G)		344		437		—		—		344		437		781		(11	)	2019
Warehouse	Stone Mountain, GA	(G)		1,338		2,950		—		—		1,338		2,950		4,288		(73	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Stone Mountain, GA	(G)		693		1,662		—		—		693		1,662		2,355		(49	)	2019
Warehouse	Stone Mountain, GA	(G)		1,283		2,760		—		—		1,283		2,760		4,043		(88	)	2019
Warehouse	Stone Mountain, GA	(G)		679		1,168		—		—		679		1,168		1,847		(23	)	2019
Warehouse	Stone Mountain, GA	(G)		501		942		—		—		501		942		1,443		(24	)	2019
Warehouse	Stone Mountain, GA	(G)		899		2,208		—		—		899		2,208		3,107		(51	)	2019
Warehouse	Stone Mountain, GA	(G)		519		1,059		—		—		519		1,059		1,578		(21	)	2019
Warehouse	Stone Mountain, GA	(G)		670		1,157		—		—		670		1,157		1,827		(33	)	2019
Warehouse	Stone Mountain, GA	(G)		482		811		—		—		482		811		1,293		(19	)	2019
Warehouse	Stone Mountain, GA	(G)		1,046		2,271		—		—		1,046		2,271		3,317		(53	)	2019
Warehouse	Stone Mountain, GA	(G)		1,455		3,673		—		—		1,455		3,673		5,128		(110	)	2019
Warehouse	Stone Mountain, GA	(G)		1,678		4,341		—		—		1,678		4,341		6,019		(172	)	2019
Warehouse	Stone Mountain, GA	(G)		205		338		—		—		205		338		543		(12	)	2019
Warehouse	Stone Mountain, GA	(G)		420		1,356		—		—		420		1,356		1,776		(31	)	2019
Warehouse	Stone Mountain, GA	(G)		418		464		—		—		418		464		882		(15	)	2019
Warehouse	Stone Mountain, GA	(G)		760		627		—		—		760		627		1,387		(22	)	2019
Warehouse	Stone Mountain, GA	(G)		2,083		4,557		—		—		2,083		4,557		6,640		(101	)	2019
Warehouse	Stone Mountain, GA	(G)		620		562		—		—		620		562		1,182		(18	)	2019
Warehouse	Tucker, GA	(G)		797		700		—		—		797		700		1,497		(18	)	2019
Warehouse	Tucker, GA	(G)		625		935		—		—		625		935		1,560		(23	)	2019
Warehouse	Tucker, GA	(G)		1,382		3,591		—		—		1,382		3,591		4,973		(102	)	2019
Warehouse	Tucker, GA	(G)		1,781		2,845		—		—		1,781		2,845		4,626		(74	)	2019
Warehouse	Tucker, GA	(G)		1,814		3,280		—		—		1,814		3,280		5,094		(82	)	2019
Warehouse	Tucker, GA	(G)		1,940		3,395		—		15		1,940		3,410		5,350		(89	)	2019
Warehouse	Tucker, GA	(G)		2,478		525		—		—		2,478		525		3,003		(32	)	2019
Warehouse	Tucker, GA	(G)		515		276		—		—		515		276		791		(10	)	2019
Warehouse	Tucker, GA	(G)		385		384		—		—		385		384		769		(11	)	2019
Warehouse	Tucker, GA	(G)		1,940		4,198		—		—		1,940		4,198		6,138		(97	)	2019
Warehouse	Tucker, GA	(G)		1,017		1,047		—		—		1,017		1,047		2,064		(32	)	2019
Warehouse	Tucker, GA	(G)		1,597		2,995		—		—		1,597		2,995		4,592		(77	)	2019
Warehouse	Tucker, GA	(G)		309		354		—		—		309		354		663		(13	)	2019
Warehouse	Tucker, GA	(G)		473		1,049		—		—		473		1,049		1,522		(26	)	2019
Warehouse	Tucker, GA	(G)		536		642		—		—		536		642		1,178		(16	)	2019
Warehouse	Tucker, GA	(G)		2,382		4,121		—		—		2,382		4,121		6,503		(99	)	2019
Warehouse	Tucker, GA	(G)		2,518		2,731		—		—		2,518		2,731		5,249		(74	)	2019
Warehouse	Tucker, GA	(G)		296		469		—		—		296		469		765		(12	)	2019
Warehouse	Tucker, GA	(G)		391		724		—		—		391		724		1,115		(20	)	2019
Warehouse	Tucker, GA	(G)		478		834		—		—		478		834		1,312		(16	)	2019
Warehouse	Tucker, GA	(G)		731		377		—		—		731		377		1,108		(13	)	2019
Warehouse	Tucker, GA	(G)		817		1,270		—		—		817		1,270		2,087		(37	)	2019
Warehouse	Tucker, GA	(G)		324		225		—		—		324		225		549		(10	)	2019
Warehouse	Tucker, GA	(G)		973		1,844		—		—		973		1,844		2,817		(48	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Denver, CO	(D)		1,141		6,265		—		—		1,141		6,265		7,406		(63	)	2019
Warehouse	Denver, CO	(D)		1,200		6,624		—		—		1,200		6,624		7,824		(68	)	2019
Warehouse	Denver, CO	(D)		2,172		14,053		—		—		2,172		14,053		16,225		(120	)	2019
Warehouse	Aurora, CO	(D)		1,457		7,862		—		114		1,457		7,976		9,433		(65	)	2019
Warehouse	Aurora, CO	(D)		1,288		8,523		—		—		1,288		8,523		9,811		(71	)	2019
Warehouse	Aurora, CO	(D)		1,442		8,481		—		—		1,442		8,481		9,923		(74	)	2019
Warehouse	Houston, TX	(D)		1,865		12,821		—		—		1,865		12,821		14,686		(125	)	2019
Warehouse	Houston, TX	(D)		1,342		9,229		—		—		1,342		9,229		10,571		(99	)	2019
Warehouse	Houston, TX	(D)		897		6,341		—		—		897		6,341		7,238		(62	)	2019
Warehouse	Houston, TX	(D)		1,915		12,028		—		—		1,915		12,028		13,943		(107	)	2019
Warehouse	Houston, TX	(D)		1,687		10,404		—		—		1,687		10,404		12,091		(98	)	2019
Warehouse	Houston, TX	(D)		1,700		11,419		—		20		1,700		11,439		13,139		(121	)	2019
Warehouse	Houston, TX	(D)		3,418		24,959		—		17		3,418		24,976		28,394		(241	)	2019
Warehouse	Houston, TX	(D)		1,639		5,993		—		—		1,639		5,993		7,632		(64	)	2019
Warehouse	San Antonio, TX	(D)		608		4,965		—		—		608		4,965		5,573		(37	)	2019
Warehouse	San Antonio, TX	(D)		336		2,432		—		—		336		2,432		2,768		(24	)	2019
Warehouse	San Antonio, TX	(D)		276		1,366		—		—		276		1,366		1,642		(14	)	2019
Warehouse	San Antonio, TX	(D)		767		6,325		—		—		767		6,325		7,092		(66	)	2019
Warehouse	San Antonio, TX	(D)		1,352		11,787		—		—		1,352		11,787		13,139		(110	)	2019
Warehouse	San Antonio, TX	(D)		806		5,974		—		1		806		5,975		6,781		(72	)	2019
Warehouse	San Antonio, TX	(D)		422		3,369		—		—		422		3,369		3,791		(60	)	2019
Warehouse	San Antonio, TX	(D)		639		4,778		—		—		639		4,778		5,417		(50	)	2019
Warehouse	San Antonio, TX	(D)		914		7,058		—		—		914		7,058		7,972		(61	)	2019
Warehouse	San Antonio, TX	(D)		759		5,713		—		—		759		5,713		6,472		(80	)	2019
Warehouse	Denver, CO	(D)		910		5,994		—		—		910		5,994		6,904		(51	)	2019
Warehouse	Denver, CO	(D)		3,570		23,626		—		—		3,570		23,626		27,196		(195	)	2019
Warehouse	Denver, CO	(D)		1,290		8,533		—		11		1,290		8,544		9,834		(75	)	2019
Warehouse	Aurora, CO	(D)		2,145		14,675		—		—		2,145		14,675		16,820		(131	)	2019
Warehouse	Aurora, CO	(D)		1,765		12,037		—		—		1,765		12,037		13,802		(105	)	2019
Warehouse	Aurora, CO	(D)		914		6,287		—		—		914		6,287		7,201		(52	)	2019
Warehouse	Aurora, CO	(D)		1,387		10,144		—		—		1,387		10,144		11,531		(85	)	2019
Warehouse	Denver, CO	(D)		2,182		13,525		—		—		2,182		13,525		15,707		(247	)	2019
Warehouse	Denver, CO	(D)		1,073		6,663		—		—		1,073		6,663		7,736		(120	)	2019
Warehouse	Denver, CO	(D)		6,000		35,892		—		106		6,000		35,998		41,998		(500	)	2019
Warehouse	Reno, NV	(D)		3,822		11,058		—		28		3,822		11,086		14,908		(177	)	2019
Warehouse	Reno, NV	(D)		1,884		6,848		—		—		1,884		6,848		8,732		(176	)	2019
Warehouse	Reno, NV	(D)		1,900		6,911		—		—		1,900		6,911		8,811		(177	)	2019
Warehouse	Reno, NV	(D)		1,499		4,176		—		47		1,499		4,223		5,722		(35	)	2019
Warehouse	Reno, NV	(D)		1,251		2,923		—		—		1,251		2,923		4,174		(25	)	2019
Warehouse	Reno, NV	(D)		631		1,546		—		—		631		1,546		2,177		(14	)	2019
Warehouse	Reno, NV	(D)		1,274		2,870		—		—		1,274		2,870		4,144		(26	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Reno, NV	(D)		648		1,666		—		—		648		1,666		2,314		(14	)	2019
Warehouse	Reno, NV	(D)		1,183		2,878		—		100		1,183		2,978		4,161		(70	)	2019
Warehouse	Reno, NV	(D)		2,241		4,479		—		—		2,241		4,479		6,720		(37	)	2019
Warehouse	Reno, NV	(D)		3,672		9,435		—		—		3,672		9,435		13,107		(215	)	2019
Warehouse	Reno, NV	(D)		2,670		4,863		—		—		2,670		4,863		7,533		(130	)	2019
Warehouse	Reno, NV	(D)		2,216		4,928		—		—		2,216		4,928		7,144		(104	)	2019
Warehouse	Reno, NV	(D)		2,451		5,554		—		46		2,451		5,600		8,051		(112	)	2019
Warehouse	Reno, NV	(D)		2,015		3,847		—		32		2,015		3,879		5,894		(79	)	2019
Warehouse	Reno, NV	(D)		2,539		7,015		—		—		2,539		7,015		9,554		(61	)	2019
Warehouse	Reno, NV	(D)		2,895		5,674		—		—		2,895		5,674		8,569		(54	)	2019
Warehouse	Reno, NV	(D)		2,007		2,003		—		—		2,007		2,003		4,010		(20	)	2019
Warehouse	Reno, NV	(D)		2,939		6,071		—		13		2,939		6,084		9,023		(56	)	2019
Warehouse	Reno, NV	(D)		3,457		8,168		—		—		3,457		8,168		11,625		(153	)	2019
Warehouse	Reno, NV	(D)		2,980		7,056		—		—		2,980		7,056		10,036		(122	)	2019
Warehouse	Reno, NV	(D)		2,947		7,001		—		—		2,947		7,001		9,948		(121	)	2019
Warehouse	Reno, NV	(D)		2,263		2,591		—		18		2,263		2,609		4,872		(24	)	2019
Warehouse	San Antonio, TX	(D)		344		3,189		—		42		344		3,231		3,575		(29	)	2019
Warehouse	San Antonio, TX	(D)		407		3,706		—		—		407		3,706		4,113		(35	)	2019
Warehouse	San Antonio, TX	(D)		238		2,509		—		—		238		2,509		2,747		(21	)	2019
Warehouse	San Antonio, TX	(D)		512		4,670		—		—		512		4,670		5,182		(79	)	2019
Warehouse	San Antonio, TX	(D)		169		1,710		—		—		169		1,710		1,879		(16	)	2019
Warehouse	San Antonio, TX	(D)		212		1,504		—		—		212		1,504		1,716		(14	)	2019
Warehouse	San Antonio, TX	(D)		467		2,517		—		21		467		2,538		3,005		(26	)	2019
Warehouse	El Paso, TX	(D)		1,153		4,579		—		—		1,153		4,579		5,732		(38	)	2019
Warehouse	El Paso, TX	(D)		1,849		5,877		—		325		1,849		6,202		8,051		(183	)	2019
Warehouse	El Paso, TX	(D)		590		5,240		—		—		590		5,240		5,830		(126	)	2019
Warehouse	El Paso, TX	(D)		926		8,160		—		—		926		8,160		9,086		(199	)	2019
Warehouse	El Paso, TX	(D)		539		4,767		—		—		539		4,767		5,306		(110	)	2019
Warehouse	El Paso, TX	(D)		674		5,957		—		—		674		5,957		6,631		(142	)	2019
Warehouse	El Paso, TX	(D)		758		6,794		—		—		758		6,794		7,552		(161	)	2019
Warehouse	El Paso, TX	(D)		975		8,462		—		—		975		8,462		9,437		(74	)	2019
Warehouse	El Paso, TX	(D)		424		3,718		—		—		424		3,718		4,142		(33	)	2019
Warehouse	El Paso, TX	(D)		533		4,632		—		—		533		4,632		5,165		(39	)	2019
Warehouse	El Paso, TX	(D)		1,270		7,997		—		72		1,270		8,069		9,339		(74	)	2019
Warehouse	El Paso, TX	(D)		828		6,543		—		—		828		6,543		7,371		(122	)	2019
Warehouse	Grand Prairie, TX	(D)		1,840		9,890		—		56		1,840		9,946		11,786		(118	)	2019
Warehouse	Arlington, TX	(D)		603		3,171		—		64		603		3,235		3,838		(29	)	2019
Warehouse	Arlington, TX	(D)		1,139		7,141		—		—		1,139		7,141		8,280		(59	)	2019
Warehouse	Arlington, TX	(D)		1,054		6,454		—		—		1,054		6,454		7,508		(63	)	2019
Warehouse	Arlington, TX	(D)		1,230		7,085		—		35		1,230		7,120		8,350		(60	)	2019
Warehouse	Arlington, TX	(D)		617		3,469		—		—		617		3,469		4,086		(35	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Arlington, TX	(D)		624		3,417		—		29		624		3,446		4,070		(38	)	2019
Warehouse	Grand Prairie, TX	(D)		353		2,529		—		—		353		2,529		2,882		(28	)	2019
Warehouse	Grand Prairie, TX	(D)		339		2,560		—		14		339		2,574		2,913		(30	)	2019
Warehouse	Dallas, TX	(D)		1,204		6,060		—		77		1,204		6,137		7,341		(59	)	2019
Warehouse	Fort Worth, TX	(D)		3,455		26,591		—		—		3,455		26,591		30,046		(224	)	2019
Warehouse	Fort Worth, TX	(D)		1,936		12,303		—		—		1,936		12,303		14,239		(109	)	2019
Warehouse	Fort Worth, TX	(D)		5,181		39,971		—		299		5,181		40,270		45,451		(314	)	2019
Warehouse	Fort Worth, TX	(D)		5,074		37,098		—		—		5,074		37,098		42,172		(328	)	2019
Warehouse	Irving, TX	(H)		875		31,181		—		—		875		31,181		32,056		(393	)	2019
Warehouse	Irving, TX	(H)		517		18,989		—		—		517		18,989		19,506		(214	)	2019
Warehouse	Hanover, MD	(H)		4,767		27,566		—		—		4,767		27,566		32,333		(236	)	2019
Warehouse	Frederick, MD	(H)		5,371		12,508		—		22		5,371		12,530		17,901		(207	)	2019
Warehouse	Frederick, MD	(H)		5,816		15,008		—		—		5,816		15,008		20,824		(245	)	2019
Warehouse	Frederick, MD	(H)		6,983		4,464		—		13		6,983		4,477		11,460		(116	)	2019
Warehouse	Alexandria, VA	(H)		4,432		17,495		—		18		4,432		17,513		21,945		(380	)	2019
Warehouse	Lockbourne, OH	(H)		7,278		73,541		—		—		7,278		73,541		80,819		(724	)	2019
Warehouse	Lenexa, KS	(H)		1,020		7,713		—		92		1,020		7,805		8,825		(125	)	2019
Warehouse	Florence, KY	(H)		1,378		8,574		—		—		1,378		8,574		9,952		(73	)	2019
Warehouse	Florence, GA	(H)		464		2,737		—		314		464		3,051		3,515		(25	)	2019
Warehouse	Florence, GA	(H)		1,186		6,896		—		—		1,186		6,896		8,082		(81	)	2019
Warehouse	New Hope, MN	(H)		2,022		6,249		—		—		2,022		6,249		8,271		(68	)	2019
Warehouse	New Hope, MN	(H)		1,880		6,080		—		—		1,880		6,080		7,960		(61	)	2019
Warehouse	Eden Prairie, MN	(H)		1,377		7,171		—		—		1,377		7,171		8,548		(93	)	2019
Warehouse	Glenn Dale, MD	(H)		7,614		5,510		—		126		7,614		5,636		13,250		(66	)	2019
Warehouse	Ashland, VA	(H)		566		7,345		—		—		566		7,345		7,911		(177	)	2019
Warehouse	Ashland, VA	(H)		579		7,321		—		515		579		7,836		8,415		(117	)	2019
Warehouse	Chester, VA	(H)		1,504		10,823		—		—		1,504		10,823		12,327		(166	)	2019
Warehouse	Chester, VA	(H)		1,594		12,734		—		—		1,594		12,734		14,328		(221	)	2019
Warehouse	Chester, VA	(H)		1,732		11,642		—		5		1,732		11,647		13,379		(156	)	2019
Warehouse	Chester, VA	(H)		862		3,711		—		—		862		3,711		4,573		(61	)	2019
Warehouse	Chester, VA	(H)		1,159		13,316		—		—		1,159		13,316		14,475		(215	)	2019
Warehouse	Chester, VA	(H)		1,072		12,311		—		—		1,072		12,311		13,383		(199	)	2019
Warehouse	Chesapeake, VA	(H)		3,434		19,890		—		123		3,434		20,013		23,447		(200	)	2019
Warehouse	Chesapeake, VA	(H)		1,099		8,819		—		—		1,099		8,819		9,918		(102	)	2019
Warehouse	Chesapeake, VA	(H)		2,107		8,957		—		76		2,107		9,033		11,140		(82	)	2019
Warehouse	Chesapeake, VA	(H)		1,886		15,959		—		72		1,886		16,031		17,917		(280	)	2019
Warehouse	Chesapeake, VA	(H)		2,377		16,613		—		—		2,377		16,613		18,990		(157	)	2019
Warehouse	Chesapeake, VA	(H)		1,123		6,407		—		—		1,123		6,407		7,530		(99	)	2019
Warehouse	Hampton, VA	(H)		4,125		20,294		—		—		4,125		20,294		24,419		(411	)	2019
Warehouse	Hampton, VA	(H)		2,592		7,121		—		31		2,592		7,152		9,744		(158	)	2019
Warehouse	Hampton, VA	(H)		1,412		5,441		—		81		1,412		5,522		6,934		(122	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Marietta, GA	(H)		1,306		8,488		—		—		1,306		8,488		9,794		(67	)	2019
Warehouse	Marietta, GA	(H)		1,040		6,779		—		—		1,040		6,779		7,819		(54	)	2019
Warehouse	Lawrenceville, GA	(H)		769		4,744		—		—		769		4,744		5,513		(38	)	2019
Warehouse	Lawrenceville, GA	(H)		781		4,931		—		—		781		4,931		5,712		(39	)	2019
Warehouse	Orlando, FL	(H)		3,146		19,718		—		189		3,146		19,907		23,053		(158	)	2019
Warehouse	Orlando, FL	(H)		1,900		11,958		—		—		1,900		11,958		13,858		(95	)	2019
Warehouse	Orlando, FL	(H)		2,943		18,634		—		159		2,943		18,793		21,736		(159	)	2019
Warehouse	Orlando, FL	(H)		901		5,676		—		—		901		5,676		6,577		(46	)	2019
Warehouse	Tampa, FL	(H)		2,811		15,921		—		—		2,811		15,921		18,732		(128	)	2019
Warehouse	Atlanta, GA	(H)		1,619		17,944		—		—		1,619		17,944		19,563		(296	)	2019
Warehouse	McDonough, GA	(H)		3,897		50,607		—		—		3,897		50,607		54,504		(621	)	2019
Warehouse	Suwanee, GA	(H)		1,191		6,529		—		—		1,191		6,529		7,720		(84	)	2019
Warehouse	Kennesaw, GA	(H)		784		7,102		—		—		784		7,102		7,886		(125	)	2019
Warehouse	Kennesaw, GA	(H)		662		6,002		—		—		662		6,002		6,664		(106	)	2019
Warehouse	Lakeland, FL	(H)		1,573		16,074		—		—		1,573		16,074		17,647		(374	)	2019
Warehouse	Lakeland, FL	(H)		760		9,465		—		28		760		9,493		10,253		(219	)	2019
Warehouse	McDonough, GA	(H)		6,583		92,969		—		—		6,583		92,969		99,552		(909	)	2019
Warehouse	Orlando, FL	(H)		691		3,827		—		—		691		3,827		4,518		(33	)	2019
Warehouse	Orlando, FL	(H)		798		3,590		—		—		798		3,590		4,388		(31	)	2019
Warehouse	Orlando, FL	(H)		735		4,416		—		—		735		4,416		5,151		(36	)	2019
Warehouse	Orlando, FL	(H)		864		4,212		—		—		864		4,212		5,076		(35	)	2019
Warehouse	Orlando, FL	(H)		765		4,280		—		—		765		4,280		5,045		(36	)	2019
Warehouse	Orlando, FL	(H)		1,211		6,371		—		56		1,211		6,427		7,638		(50	)	2019
Warehouse	Orlando, FL	(H)		1,141		5,641		—		—		1,141		5,641		6,782		(48	)	2019
Warehouse	Orlando, FL	(H)		1,203		6,587		—		—		1,203		6,587		7,790		(54	)	2019
Warehouse	Orlando, FL	(H)		1,295		7,497		—		—		1,295		7,497		8,792		(61	)	2019
Warehouse	Orlando, FL	(H)		8,897		37,911		—		1,140		8,897		39,051		47,948		(415	)	2019
Warehouse	Tampa, FL	(H)		489		1,781		—		—		489		1,781		2,270		(14	)	2019
Warehouse	Tampa, FL	(H)		1,534		8,500		—		—		1,534		8,500		10,034		(218	)	2019
Warehouse	Tampa, FL	(H)		435		2,430		—		—		435		2,430		2,865		(61	)	2019
Warehouse	Tampa, FL	(H)		825		6,061		—		—		825		6,061		6,886		(50	)	2019
Warehouse	Tampa, FL	(H)		838		6,304		—		5		838		6,309		7,147		(52	)	2019
Warehouse	Tampa, FL	(H)		1,234		3,861		—		—		1,234		3,861		5,095		(32	)	2019
Warehouse	Tampa, FL	(H)		939		4,361		—		—		939		4,361		5,300		(34	)	2019
Warehouse	Tampa, FL	(H)		949		4,995		—		—		949		4,995		5,944		(39	)	2019
Warehouse	Tampa, FL	(H)		328		3,384		—		35		328		3,419		3,747		(28	)	2019
Warehouse	Tampa, FL	(H)		348		3,681		—		19		348		3,700		4,048		(31	)	2019
Warehouse	Lakeland, FL	(H)		1,765		18,029		—		—		1,765		18,029		19,794		(156	)	2019
Warehouse	Tampa, FL	(H)		1,434		6,347		—		50		1,434		6,397		7,831		(58	)	2019
Warehouse	Tampa, FL	(H)		1,755		12,076		—		—		1,755		12,076		13,831		(101	)	2019
Warehouse	Tampa, FL	(H)		1,352		5,760		—		—		1,352		5,760		7,112		(48	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Tampa, FL	(H)		943		2,998		—		—		943		2,998		3,941		(24	)	2019
Warehouse	Tampa, FL	(H)		1,481		6,753		—		52		1,481		6,805		8,286		(55	)	2019
Warehouse	Tampa, FL	(H)		1,733		9,922		—		—		1,733		9,922		11,655		(81	)	2019
Warehouse	Tampa, FL	(H)		687		5,039		—		—		687		5,039		5,726		(39	)	2019
Warehouse	Tampa, FL	(H)		2,432		6,326		—		18		2,432		6,344		8,776		(112	)	2019
Warehouse	Tampa, FL	(H)		603		3,593		—		9		603		3,602		4,205		(58	)	2019
Warehouse	Tampa, FL	(H)		562		2,644		—		72		562		2,716		3,278		(42	)	2019
Warehouse	Orlando, FL	(H)		1,893		7,633		—		—		1,893		7,633		9,526		(195	)	2019
Warehouse	Orlando, FL	(H)		2,431		12,051		—		—		2,431		12,051		14,482		(258	)	2019
Warehouse	Orlando, FL	(H)		1,862		8,683		—		—		1,862		8,683		10,545		(73	)	2019
Warehouse	Orlando, FL	(H)		1,932		10,485		—		—		1,932		10,485		12,417		(89	)	2019
Warehouse	Orlando, FL	(H)		2,281		10,943		—		—		2,281		10,943		13,224		(91	)	2019
Warehouse	Orlando, FL	(H)		5,043		26,535		—		—		5,043		26,535		31,578		(628	)	2019
Warehouse	Orlando, FL	(H)		3,509		22,120		—		—		3,509		22,120		25,629		(178	)	2019
Warehouse	Orlando, FL	(H)		1,664		9,596		—		—		1,664		9,596		11,260		(80	)	2019
Warehouse	Ball Ground, GA	(H)		2,988		2,196		—		—		2,988		2,196		5,184		(26	)	2019
Warehouse	Benicia, CA	(H)		6,132		—		—		—		6,132		—		6,132		—		2019
Warehouse	Reading, PA	(H)		272		8,180		—		—		272		8,180		8,452		(140	)	2019
Warehouse	Reading, PA	(H)		497		17,111		—		—		497		17,111		17,608		(291	)	2019
Warehouse	The Colony, TX	(H)		11,646		—		—		1		11,646		1		11,647		—		2019
Warehouse	Chester, VA	(H)		8,072		—		—		—		8,072		—		8,072		—		2019
Warehouse	Minneapolis, MN	(H)		2,178		7,490		—		2		2,178		7,492		9,670		(83	)	2019
Warehouse	Elkwood, VA	(H)		1,548		7,990		—		—		1,548		7,990		9,538		(202	)	2019
Warehouse	West Chester, OH	(H)		2,009		10,872		—		—		2,009		10,872		12,881		(102	)	2019
Warehouse	Harrison, OH	(H)		1,177		6,574		—		—		1,177		6,574		7,751		(72	)	2019
Warehouse	Harrison, OH	(H)		1,103		1,379		—		—		1,103		1,379		2,482		(28	)	2019
Warehouse	Bridgewater, NJ	(H)		12,005		37,225		—		17		12,005		37,242		49,247		(343	)	2019
Warehouse	Bridgewater, NJ	(H)		1,831		4,428		—		—		1,831		4,428		6,259		(53	)	2019
Warehouse	Whippany, NJ	(H)		3,416		10,264		—		148		3,416		10,412		13,828		(104	)	2019
Warehouse	Joliet, IL	(H)		4,811		21,868		—		21		4,811		21,889		26,700		(241	)	2019
Warehouse	Joliet, IL	(H)		6,390		29,626		—		—		6,390		29,626		36,016		(350	)	2019
Warehouse	Joliet, IL	(H)		3,179		—		—		—		3,179		—		3,179		—		2019
Warehouse	Joliet, IL	(H)		630		—		—		—		630		—		630		—		2019
Warehouse	Rochelle, IL	(H)		3,648		28,007		—		127		3,648		28,134		31,782		(335	)	2019
Warehouse	Romeoville, IL	(H)		921		4,659		—		—		921		4,659		5,580		(96	)	2019
Warehouse	Burr Ridge, IL	(H)		2,673		8,591		—		39		2,673		8,630		11,303		(75	)	2019
Warehouse	Lincolnshire, IL	(H)		1,059		4,159		—		—		1,059		4,159		5,218		(33	)	2019
Warehouse	Vernon Hills, IL	(H)		2,283		10,356		—		—		2,283		10,356		12,639		(167	)	2019
Warehouse	Bolingbrook, IL	(H)		3,078		12,386		—		—		3,078		12,386		15,464		(167	)	2019
Warehouse	Bolingbrook, IL	(H)		2,006		11,960		—		—		2,006		11,960		13,966		(151	)	2019
Warehouse	Middletown, PA	(H)		3,227		37,526		—		251		3,227		37,777		41,004		(501	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Harrisburg, PA	(H)		5,660		43,333		—		—		5,660		43,333		48,993		(357	)	2019
Warehouse	Lemoyne, PA	(H)		6,979		67,439		—		—		6,979		67,439		74,418		(1,083	)	2019
Warehouse	Carlisle, PA	(H)		6,851		40,448		—		—		6,851		40,448		47,299		(543	)	2019
Warehouse	Carlisle, PA	(H)		6,992		36,972		—		—		6,992		36,972		43,964		(467	)	2019
Warehouse	Mountain Top, PA	(H)		4,382		23,560		—		—		4,382		23,560		27,942		(443	)	2019
Warehouse	Mechanicsburg, PA	(H)		1,102		9,727		—		72		1,102		9,799		10,901		(236	)	2019
Warehouse	Mechanicsburg, PA	(H)		3,916		27,686		—		243		3,916		27,929		31,845		(748	)	2019
Warehouse	Mechanicsburg, PA	(H)		1,431		9,601		—		10		1,431		9,611		11,042		(249	)	2019
Warehouse	Independence, KY	(H)		1,892		13,243		—		—		1,892		13,243		15,135		(180	)	2019
Warehouse	Fairfield, OH	(H)		1,721		9,206		—		—		1,721		9,206		10,927		(92	)	2019
Warehouse	Shawnee, KS	(H)		2,179		11,911		—		169		2,179		12,080		14,259		(149	)	2019
Warehouse	Hebron, OH	(H)		2,309		19,211		—		—		2,309		19,211		21,520		(486	)	2019
Warehouse	Erlanger, KY	(H)		672		5,139		—		32		672		5,171		5,843		(84	)	2019
Warehouse	Florence, KY	(H)		1,710		13,371		—		—		1,710		13,371		15,081		(208	)	2019
Warehouse	Florence, KY	(H)		1,750		19,285		—		1,584		1,750		20,869		22,619		(445	)	2019
Warehouse	Florence, KY	(H)		764		1,613		—		—		764		1,613		2,377		(34	)	2019
Warehouse	Florence, KY	(H)		782		1,833		—		—		782		1,833		2,615		(38	)	2019
Warehouse	Florence, KY	(H)		785		4,932		—		—		785		4,932		5,717		(122	)	2019
Warehouse	Mounds View, MN	(H)		366		3,810		—		17		366		3,827		4,193		(90	)	2019
Warehouse	Mounds View, MN	(H)		1,464		13,392		—		—		1,464		13,392		14,856		(376	)	2019
Warehouse	Mounds View, MN	(H)		738		7,051		—		—		738		7,051		7,789		(168	)	2019
Warehouse	Mounds View, MN	(H)		1,406		5,279		—		—		1,406		5,279		6,685		(46	)	2019
Warehouse	Plymouth, MN	(H)		3,247		6,024		—		179		3,247		6,203		9,450		(121	)	2019
Warehouse	Eagan, MN	(H)		2,716		14,630		—		—		2,716		14,630		17,346		(138	)	2019
Warehouse	West Chester, OH	(H)		1,590		10,320		—		9		1,590		10,329		11,919		(266	)	2019
Warehouse	West Chester, OH	(H)		1,342		8,382		—		—		1,342		8,382		9,724		(132	)	2019
Warehouse	Romeoville, IL	(H)		7,625		17,104		—		1,530		7,625		18,634		26,259		(147	)	2019
Warehouse	Romeoville, IL	(H)		2,358		16,127		—		—		2,358		16,127		18,485		(131	)	2019
Warehouse	Coppell, TX	(L)		14,809		56,730		—		—		14,809		56,730		71,539		(543	)	2019
Warehouse	DFW Airport, TX	(H)		349		12,858		—		—		349		12,858		13,207		(116	)	2019
Warehouse	DFW Airport, TX	(H)		438		15,373		—		—		438		15,373		15,811		(139	)	2019
Warehouse	DFW Airport,	(H)		348		12,563		—		—		348		12,563		12,911		(108	)	2019
Warehouse	Dallas, TX	(G)		1,297		10,933		—		—		1,297		10,933		12,230		(81	)	2019
Warehouse	Carrollton, TX	(G)		1,840		9,599		—		17		1,840		9,616		11,456		(92	)	2019
Warehouse	Carrollton, TX	(G)		1,648		6,793		—		15		1,648		6,808		8,456		(59	)	2019
Warehouse	Allen, KY	(G)		2,933		18,579		—		—		2,933		18,579		21,512		(307	)	2019
Warehouse	Dallas, TX	(G)		5,571		41,168		—		118		5,571		41,286		46,857		(571	)	2019
Warehouse	El Paso, TX	(G)		883		8,760		—		—		883		8,760		9,643		(157	)	2019
Warehouse	El Paso, TX	(G)		1,338		10,012		—		—		1,338		10,012		11,350		(191	)	2019
Warehouse	El Paso, TX	(G)		519		4,170		—		—		519		4,170		4,689		(84	)	2019
Warehouse	El Paso, TX	(G)		1,007		8,060		—		—		1,007		8,060		9,067		(154	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	El Paso, TX	(G)		1,367		12,476		—		6		1,367		12,482		13,849		(233	)	2019
Warehouse	El Paso, TX	(G)		1,631		11,722		—		—		1,631		11,722		13,353		(216	)	2019
Warehouse	North Las Vegas, NV	(G)		9,777		57,617		—		16		9,777		57,633		67,410		(479	)	2019
Warehouse	Jeffersonville, IN	(G)		5,735		36,458		—		—		5,735		36,458		42,193		(319	)	2019
Warehouse	Elgin, IL	(G)		1,788		10,789		—		—		1,788		10,789		12,577		(169	)	2019
Warehouse	Broadview, IL	(G)		4,403		5,962		—		—		4,403		5,962		10,365		(51	)	2019
Warehouse	North Aurora, IL	(G)		1,718		6,938		—		3		1,718		6,941		8,659		(112	)	2019
Warehouse	Schaumburg, IL	(G)		2,639		7,761		—		—		2,639		7,761		10,400		(74	)	2019
Warehouse	New Berlin, WI	(G)		1,143		8,597		—		—		1,143		8,597		9,740		(129	)	2019
Warehouse	Aurora, IL	(G)		1,454		7,700		—		—		1,454		7,700		9,154		(183	)	2019
Warehouse	Aurora, IL	(G)		686		3,311		—		60		686		3,371		4,057		(42	)	2019
Warehouse	Bedford Park, IL	(G)		8,125		9,767		—		22		8,125		9,789		17,914		(155	)	2019
Warehouse	Bedford Park, IL	(G)		3,764		17,610		—		—		3,764		17,610		21,374		(246	)	2019
Warehouse	Bensenville, IL	(G)		2,003		8,149		—		10		2,003		8,159		10,162		(67	)	2019
Warehouse	Bedford Park, IL	(G)		3,256		11,031		—		—		3,256		11,031		14,287		(106	)	2019
Warehouse	Middletown, PA	(G)		4,459		51,911		—		25		4,459		51,936		56,395		(710	)	2019
Warehouse	Addison, IL	(G)		628		1,001		—		29		628		1,030		1,658		(11	)	2019
Warehouse	Addison, IL	(G)		1,149		1,846		—		22		1,149		1,868		3,017		(18	)	2019
Warehouse	Fremont, OH	(G)		567		7,357		—		—		567		7,357		7,924		(130	)	2019
Warehouse	Fremont, OH	(G)		474		5,812		—		—		474		5,812		6,286		(112	)	2019
Warehouse	Fremont, OH	(G)		191		1,461		—		—		191		1,461		1,652		(11	)	2019
Warehouse	Fremont, OH	(G)		226		1,455		—		—		226		1,455		1,681		(11	)	2019
Warehouse	Indianapolis, IN	(G)		635		1,335		—		—		635		1,335		1,970		(13	)	2019
Warehouse	Indianapolis, IN	(G)		290		655		—		—		290		655		945		(6	)	2019
Warehouse	Indianapolis, IN	(G)		1,242		3,274		—		—		1,242		3,274		4,516		(33	)	2019
Warehouse	Indianapolis, IN	(G)		730		2,336		—		1		730		2,337		3,067		(22	)	2019
Warehouse	Indianapolis, IN	(G)		849		1,970		—		—		849		1,970		2,819		(20	)	2019
Warehouse	Indianapolis, IN	(G)		882		2,357		—		—		882		2,357		3,239		(23	)	2019
Warehouse	Indianapolis, IN	(G)		526		1,284		—		—		526		1,284		1,810		(13	)	2019
Warehouse	Indianapolis, IN	(G)		1,554		5,286		—		—		1,554		5,286		6,840		(51	)	2019
Warehouse	Indianapolis, IN	(G)		369		701		—		—		369		701		1,070		(7	)	2019
Warehouse	Sauk Village, IL	(G)		1,822		8,843		—		100		1,822		8,943		10,765		(125	)	2019
Warehouse	Columbus, OH	(G)		850		5,210		—		—		850		5,210		6,060		(51	)	2019
Warehouse	Columbus, OH	(G)		809		4,254		—		—		809		4,254		5,063		(33	)	2019
Warehouse	Columbus, OH	(G)		814		4,594		—		—		814		4,594		5,408		(44	)	2019
Warehouse	Columbus, OH	(G)		703		5,022		—		—		703		5,022		5,725		(39	)	2019
Warehouse	Columbus, OH	(G)		619		4,390		—		—		619		4,390		5,009		(35	)	2019
Warehouse	Columbus, OH	(G)		1,281		6,406		—		—		1,281		6,406		7,687		(49	)	2019
Warehouse	Columbus, OH	(G)		1,184		10,712		—		—		1,184		10,712		11,896		(86	)	2019
Warehouse	Columbus, OH	(G)		1,392		8,357		—		—		1,392		8,357		9,749		(72	)	2019
Warehouse	Columbus, OH	(G)		875		3,958		—		—		875		3,958		4,833		(69	)	2019

			Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances	Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Plainfield, IN	(G)		6,165		42,337		—		—		6,165		42,337		48,502		(545	)	2019
Warehouse	Indianapolis, IN	(G)		2,671		7,987		—		—		2,671		7,987		10,658		(64	)	2019
Warehouse	Indianapolis, IN	(G)		4,827		27,999		—		—		4,827		27,999		32,826		(650	)	2019
Warehouse	Louisville, KY	(G)		1,882		13,721		—		—		1,882		13,721		15,603		(172	)	2019
Warehouse	Louisville, KY	(G)		2,392		19,106		—		18		2,392		19,124		21,516		(258	)	2019
Warehouse	Groveport, OH	(G)		3,065		26,553		—		—		3,065		26,553		29,618		(281	)	2019
Warehouse	San Bernardino, CA	(G)		4,053		124,288		—		—		4,053		124,288		128,341		(1,040	)	2019
Warehouse	York, PA	(I)		14,330		105,771		—		—		14,330		105,771		120,101		(894	)	2019
Warehouse	Kennesaw, GA	(I)		1,901		15,871		—		—		1,901		15,871		17,772		(153	)	2019
Warehouse	DeSoto, TX	(I)		8,135		76,018		—		—		8,135		76,018		84,153		(678	)	2019
Warehouse	Indianapolis, IN	(I)		4,111		21,788		—		—		4,111		21,788		25,899		(250	)	2019
Warehouse	Hanover Park, IL	(I)		4,707		34,315		—		—		4,707		34,315		39,022		(450	)	2019
Warehouse	Joliet, IL	(I)		9,172		49,191		—		—		9,172		49,191		58,363		(427	)	2019
Warehouse	Garland, TX	(I)		2,515		16,087		—		—		2,515		16,087		18,602		(207	)	2019
Warehouse	Hanover Park, IL	(I)		2,663		9,508		—		—		2,663		9,508		12,171		(180	)	2019
Warehouse	Bolingbrook, IL	(I)		3,105		24,504		—		42		3,105		24,546		27,651		(290	)	2019
Warehouse	Joliet, IL	(I)		4,534		25,549		—		—		4,534		25,549		30,083		(294	)	2019
Warehouse	Elgin, IL	(I)		2,437		14,505		—		—		2,437		14,505		16,942		(166	)	2019
Warehouse	Carol Stream, IL	(I)		3,385		6,796		—		—		3,385		6,796		10,181		(75	)	2019
Warehouse	Hanover Park, IL	(I)		4,433		22,731		—		—		4,433		22,731		27,164		(361	)	2019
Warehouse	Braselton, GA	(J)		6,808		70,501		—		—		6,808		70,501		77,309		(598	)	2019
Warehouse	Atlanta, GA	(J)		3,876		22,104		—		—		3,876		22,104		25,980		(174	)	2019
Warehouse	Bedford Park, IL	(J)		6,773		20,325		—		1		6,773		20,326		27,099		(234	)	2019
Warehouse	Melrose Park, IL	(J)		3,568		11,536		—		7		3,568		11,543		15,111		(137	)	2019
Warehouse	Kutztown, IL	(J)		10,017		41,567		—		—		10,017		41,567		51,584		(370	)	2019
Warehouse	Dallas, TX	(J)		7,885		40,311		—		—		7,885		40,311		48,196		(380	)	2019
Warehouse	Dallas, TX	(J)		6,683		24,880		—		—		6,683		24,880		31,563		(272	)	2019
Warehouse	Louisville, KY	(J)		2,611		14,870		—		—		2,611		14,870		17,481		(260	)	2019
Warehouse	Fairburn, GA	(J)		3,672		22,803		—		—		3,672		22,803		26,475		(206	)	2019
Warehouse	Houston, TX	(J)		2,323		11,491		—		42		2,323		11,533		13,856		(189	)	2019
Warehouse	North Las Vegas, NV	(J)		14,730		80,458		—		—		14,730		80,458		95,188		(640	)	2019
Warehouse	Indianapolis, IN	(J)		5,206		24,991		—		266		5,206		25,257		30,463		(223	)	2019
Warehouse	Dallas, TX	(J)		7,302		51,914		—		—		7,302		51,914		59,216		(511	)	2019
Warehouse	Louisville, KY	(J)		1,910		9,700		—		—		1,910		9,700		11,610		(80	)	2019
Warehouse	Louisville, KY	(J)		891		6,379		—		—		891		6,379		7,270		(132	)	2019
Warehouse	Louisville, KY	(J)		1,925		10,498		—		—		1,925		10,498		12,423		(169	)	2019
Warehouse	North Las Vegas, NV	(J)		11,297		53,947		—		—		11,297		53,947		65,244		(436	)	2019
Warehouse	San Antonio, TX	—		330		—		—		—		330		—		330		—		2019
Warehouse	San Antonio, TX	—		330		—		—		—		330		—		330		—		2019
Warehouse	San Antonio, TX	—		330		—		—		—		330		—		330		—		2019
Warehouse	Austin, TX	—		268		—		—		—		268		—		268		—		2019

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Warehouse	Lenexa, KS	(I)			755		5,743		—		—		755		5,743		6,498		(87	)	2019
Warehouse	Elk Grove Village, IL	(I)			2,885		10,771		—		—		2,885		10,771		13,656		(85	)	2019
Warehouse	Erlanger, KY	(J)			1,694		56,827		—		—		1,694		56,827		58,521		(477	)	2019
Warehouse	San Diego, CA	—			27,662		—		—		—		27,662		—		27,662		(5	)	2019
Warehouse	Pooler, GA	—			3,896		20,283		—		—		3,896		20,283		24,179		(420	)	2019
Warehouse	Durham, NC	(K)			2,164		12,665		—		—		2,164		12,665		14,829		(155	)	2019
Warehouse	Durham, NC	(K)			2,117		12,202		—		—		2,117		12,202		14,319		(134	)	2019
Total Industrial Properties:				$	1,798,472	$	8,125,309	$	—	$	70,696	$	1,798,472	$	8,196,005	$	9,994,477	$	(246,358	)

Multifamily Properties:
Mid Rise Apartments	Atlanta, GA	$	130,000	$	—	$	171,709	$	116	$	3,397	$	116	$	175,106	$	175,222	$	(16,900	)	2017
High Rise Apartments	Orlando, FL		63,600		10,030		97,652		26		7,313		10,056		104,965		115,021		(9,954	)	2017
Garden Style Apartments	Addison, TX		36,140		9,382		37,786		43		1,632		9,425		39,418		48,843		(3,568	)	2017
Garden Style Apartments	Orlando, FL		43,225		11,567		57,128		187		4,278		11,754		61,406		73,160		(5,594	)	2017
Garden Style Apartments	Palm Beach Gardens, FL		69,777		24,422		73,818		395		5,630		24,817		79,448		104,265		(7,376	)	2017
Garden Style Apartments	Gurnee, IL		41,340		10,899		42,850		426		3,937		11,325		46,787		58,112		(4,371	)	2017
Garden Style Apartments	Lenexa, KS		20,767		2,156		28,655		149		1,450		2,305		30,105		32,410		(2,801	)	2017
Garden Style Apartments	Mesa, AZ		26,455		9,358		30,007		208		916		9,566		30,923		40,489		(3,550	)	2017
Garden Style Apartments	Henderson, NV		37,783		4,745		47,195		33		729		4,778		47,924		52,702		(4,605	)	2017
Garden Style Apartments	Las Vegas, NV		37,487		6,071		46,952		14		635		6,085		47,587		53,672		(4,630	)	2017
Garden Style Apartments	Las Vegas, NV		46,110		6,593		51,158		4		819		6,597		51,977		58,574		(4,944	)	2017
Garden Style Apartments	Las Vegas, NV		33,704		6,632		37,909		96		1,324		6,728		39,233		45,961		(3,537	)	2017
Garden Style Apartments	Las Vegas, NV		26,281		5,569		29,208		91		1,569		5,660		30,777		36,437		(2,857	)	2017
Garden Style Apartments	Las Vegas, NV		75,400		17,565		80,840		212		1,059		17,777		81,899		99,676		(7,972	)	2017
Garden Style Apartments	Gilbert, AZ		40,484		16,489		53,056		48		461		16,537		53,517		70,054		(4,432	)	2017
Garden Style Apartments	Gilbert, AZ		48,129		15,574		54,663		28		55		15,602		54,718		70,320		(4,437	)	2017
Garden Style Apartments	Dallas, TX		47,600		16,678		47,939		39		505		16,717		48,444		65,161		(3,947	)	2017
Garden Style Apartments	Richardson, TX	(K)			11,754		49,788		50		791		11,804		50,579		62,383		(4,019	)	2017
Garden Style Apartments	Modesto, CA		24,500		2,765		33,720		85		2,130		2,850		35,850		38,700		(2,754	)	2017
Garden Style Apartments	Flagstaff, AZ		18,413		3,344		30,331		67		1,016		3,411		31,347		34,758		(2,491	)	2017
Garden Style Apartments	Olympia, WA		23,235		3,940		27,206		35		1,195		3,975		28,401		32,376		(2,409	)	2017
Garden Style Apartments	Gilbert, AZ		33,232		10,679		28,170		69		1,792		10,748		29,962		40,710		(2,348	)	2017
Garden Style Apartments	Jacksonville, FL		43,727		11,548		55,009		501		4,535		12,049		59,544		71,593		(4,775	)	2017
Garden Style Apartments	Jacksonville, FL		23,215		4,034		28,288		73		880		4,107		29,168		33,275		(2,258	)	2017
Garden Style Apartments	Jacksonville, FL		22,798		3,996		29,314		80		913		4,076		30,227		34,303		(2,319	)	2017
Garden Style Apartments	San Antonio, TX		27,202		8,248		29,020		277		3,652		8,525		32,672		41,197		(2,849	)	2017
Garden Style Apartments	Nashville, TN		20,987		3,910		20,056		441		1,463		4,351		21,519		25,870		(1,727	)	2017
Garden Style Apartments	Grand Prairie, TX		16,503		3,514		18,039		271		2,263		3,785		20,302		24,087		(1,520	)	2017
Garden Style Apartments	Sumner, TN		23,357		2,222		32,374		55		337		2,277		32,711		34,988		(2,427	)	2017
Garden Style Apartments	Louisville, KY		8,352		1,285		11,025		96		1,108		1,381		12,133		13,514		(922	)	2017
Garden Style Apartments	North Richland Hills, TX		15,277		3,566		20,889		207		107		3,773		20,996		24,769		(1,417	)	2017

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Garden Style Apartments	Mansfield, TX		26,013		3,810		32,854		74		1,826		3,884		34,680		38,564		(2,698	)	2017
Garden Style Apartments	Austin, TX		49,733		8,371		52,576		1,056		2,329		9,427		54,905		64,332		(4,094	)	2017
Garden Style Apartments	Round Rock, TX		20,502		3,851		25,309		66		1,316		3,917		26,625		30,542		(2,073	)	2017
Garden Style Apartments	Murfreesboro, TN		24,457		2,674		29,863		90		1,254		2,764		31,117		33,881		(2,291	)	2017
Garden Style Apartments	San Antonio, TX		13,308		2,454		14,742		92		904		2,546		15,646		18,192		(1,201	)	2017
Garden Style Apartments	Buda, TX		20,704		3,809		23,117		77		498		3,886		23,615		27,501		(1,947	)	2017
Garden Style Apartments	Fair Oaks Ranch, TX		22,565		4,629		27,813		17		465		4,646		28,278		32,924		(1,948	)	2017
Garden Style Apartments	San Marcos, TX		—		3,147		21,147		123		638		3,270		21,785		25,055		(1,596	)	2017
Garden Style Apartments	Louisville, KY		8,045		2,205		13,227		127		1,181		2,332		14,408		16,740		(1,004	)	2017
Garden Style Apartments	Louisville, KY		10,952		2,118		14,118		22		121		2,140		14,239		16,379		(941	)	2017
Garden Style Apartments	Louisville, KY		9,067		1,680		12,500		10		555		1,690		13,055		14,745		(863	)	2017
Garden Style Apartments	Nashville, TN		5,492		1,795		12,033		102		533		1,897		12,566		14,463		(840	)	2017
Garden Style Apartments	Carrollton, TX		5,557		3,393		9,871		106		1,287		3,499		11,158		14,657		(782	)	2017
Garden Style Apartments	Louisville, KY		—		295		1,927		6		41		301		1,968		2,269		(135	)	2017
Garden Style Apartments	Hillsboro, OR		62,732		9,176		81,990		—		110		9,176		82,100		91,276		(6,011	)	2017
Garden Style Apartments	Las Vegas, NV		33,897		14,447		34,871		89		1,733		14,536		36,604		51,140		(3,035	)	2017
Garden Style Apartments	Las Vegas, NV		41,177		14,801		46,622		53		1,806		14,854		48,428		63,282		(3,990	)	2017
Garden Style Apartments	Thornton, CO		44,325		9,711		47,052		553		2,708		10,264		49,760		60,024		(3,684	)	2017
Garden Style Apartments	Everett, WA		47,705		19,105		46,552		305		3,203		19,410		49,755		69,165		(4,194	)	2017
Garden Style Apartments	Miami, FL		95,299		28,419		103,131		306		177		28,725		103,308		132,033		(8,461	)	2017
Garden Style Apartments	Sacramento, CA		99,990		19,181		124,339		193		2,772		19,374		127,111		146,485		(8,066	)	2018
Garden Style Apartments	Tumwater, WA		53,049		16,515		57,382		76		3,829		16,591		61,211		77,802		(4,288	)	2018
Garden Style Apartments	Las Vegas, NV		46,940		23,755		43,057		78		1,808		23,833		44,865		68,698		(3,160	)	2018
Garden Style Apartments	University Place, WA		32,672		9,427		37,072		30		2,053		9,457		39,125		48,582		(2,474	)	2018
Garden Style Apartments	Milwaukie, OR		26,835		8,306		30,319		102		1,136		8,408		31,455		39,863		(2,105	)	2018
Garden Style Apartments	Liberty Lake, WA		29,904		5,501		31,785		152		2,927		5,653		34,712		40,365		(2,231	)	2018
Garden Style Apartments	Randolph, MA		86,191		16,236		108,066		161		1,699		16,397		109,765		126,162		(6,362	)	2018
Garden Style Apartments	Orlando, FL		36,881		7,989		48,397		271		2,722		8,260		51,119		59,379		(3,055	)	2018
Garden Style Apartments	Jacksonville, FL		37,338		8,186		43,909		144		1,150		8,330		45,059		53,389		(2,779	)	2018
Garden Style Apartments	Gresham, OR		33,458		4,825		49,266		142		1,083		4,967		50,349		55,316		(2,996	)	2018
Garden Style Apartments	Turlock, CA		23,301		2,241		35,067		6		1,084		2,247		36,151		38,398		(2,034	)	2018
Garden Style Apartments	Las Vegas, NV		47,190		22,388		47,128		181		1,982		22,569		49,110		71,679		(3,294	)	2018
Garden Style Apartments	Phoenix, AZ		29,728		8,738		37,766		60		1,429		8,798		39,195		47,993		(2,693	)	2018
Garden Style Apartments	Glendale, AZ		40,671		12,242		49,800		3		120		12,245		49,920		62,165		(3,704	)	2018
Garden Style Apartments	Glendale, AZ		25,610		6,505		32,193		45		1,357		6,550		33,550		40,100		(1,833	)	2018
Garden Style Apartments	Tempe, AZ		42,703		11,457		52,606		96		1,693		11,553		54,299		65,852		(3,006	)	2018
Garden Style Apartments	Phoenix, AZ		35,043		9,847		42,718		119		2,149		9,966		44,867		54,833		(2,460	)	2018
Garden Style Apartments	Chandler, AZ		29,600		7,521		36,794		24		1,386		7,545		38,180		45,725		(2,079	)	2018
Garden Style Apartments	Surprise, AZ		44,982		10,845		55,009		39		2,400		10,884		57,409		68,293		(3,319	)	2018
Garden Style Apartments	Peoria, AZ		22,745		4,833		27,719		35		1,410		4,868		29,129		33,997		(1,488	)	2018
Garden Style Apartments	Las Vegas, NV		44,687		4,630		59,893		147		1,604		4,777		61,497		66,274		(2,330	)	2018

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Garden Style Apartments	Phoenix, AZ		39,179		11,626		46,444		84		19		11,710		46,463		58,173		(1,800	)	2019
Garden Style Apartments	Moreno Valley, CA		61,710		9,483		82,211		1		206		9,484		82,417		91,901		(2,688	)	2019
Garden Style Apartments	Temecula, CA		43,300		6,541		82,161		33		42		6,574		82,203		88,777		(2,551	)	2019
Garden Style Apartments	Santa Fe Springs, CA		28,220		10,795		44,758		19		85		10,814		44,843		55,657		(1,340	)	2019
Garden Style Apartments	St. Petersburg, FL		43,506		12,618		50,172		60		1,027		12,678		51,199		63,877		(1,525	)	2019
Garden Style Apartments	Orlando, FL		39,260		8,422		59,988		63		122		8,485		60,110		68,595		(1,800	)	2019
Garden Style Apartments	Lewisville, TX		31,169		5,777		40,840		20		209		5,797		41,049		46,846		(1,354	)	2019
Garden Style Apartments	Englewood, CO		45,500		6,685		65,881		66		85		6,751		65,966		72,717		(1,860	)	2019
Garden Style Apartments	Centennial, CO		35,037		6,492		44,555		68		1,276		6,560		45,831		52,391		(1,439	)	2019
Garden Style Apartments	Hillsboro, OR		32,299		7,011		45,819		4		310		7,015		46,129		53,144		(1,363	)	2019
Garden Style Apartments	Portland, OR		18,200		4,006		24,748		—		123		4,006		24,871		28,877		(724	)	2019
Garden Style Apartments	Charlotte, NC		35,463		8,328		43,217		59		800		8,387		44,017		52,404		(1,581	)	2019
Garden Style Apartments	Woodstock, GA		34,856		8,236		42,166		12		278		8,248		42,444		50,692		(1,291	)	2019
Garden Style Apartments	Ladson, SC		24,500		6,512		35,603		28		452		6,540		36,055		42,595		(1,248	)	2019
Garden Style Apartments	Hopkinton, MA		38,675		9,298		52,822		15		176		9,313		52,998		62,311		(1,634	)	2019
Garden Style Apartments	Henderson, NV		64,844		13,651		81,360		93		105		13,744		81,465		95,209		(1,667	)	2019
Garden Style Apartments	Henderson, NV		63,205		12,949		74,610		107		173		13,056		74,783		87,839		(2,031	)	2019
Garden Style Apartments	Henderson, NV		49,374		9,009		55,495		42		148		9,051		55,643		64,694		(1,484	)	2019
Garden Style Apartments	Las Vegas, NV	(K)			17,312		72,129		—		—		17,312		72,129		89,441		(452	)	2019
Garden Style Apartments	Orlando, FL		51,986		10,521		62,358		22		65		10,543		62,423		72,966		(1,560	)	2019
Garden Style Apartments	Lithia Springs, GA		26,046		6,054		31,725		2		208		6,056		31,933		37,989		(877	)	2019
Garden Style Apartments	Las Vegas, NV		37,700		12,345		41,864		90		604		12,435		42,468		54,903		(1,225	)	2019
Garden Style Apartments	Charlotte, NC		33,000		7,280		31,350		50		780		7,330		32,130		39,460		(760	)	2019
Garden Style Apartments	Charlotte, NC		46,600		9,181		56,344		41		455		9,222		56,799		66,021		(888	)	2019
Garden Style Apartments	Phoenix, AZ		51,000		18,229		56,120		23		821		18,252		56,941		75,193		(1,064	)	2019
Garden Style Apartments	Corona Hills, CA		62,833		14,083		80,264		5		1,188		14,088		81,452		95,540		(2,070	)	2019
Garden Style Apartments	Moreno Valley, CA		45,475		10,070		58,439		5		710		10,075		59,149		69,224		(1,409	)	2019
Garden Style Apartments	Lakeland, FL		41,800		8,788		49,612		18		1,652		8,806		51,264		60,070		(1,247	)	2019
Garden Style Apartments	Peoria, AZ		46,150		11,935		55,630		22		135		11,957		55,765		67,722		(1,819	)	2019
Garden Style Apartments	Kennewick, WA		20,131		2,755		24,092		172		1,137		2,927		25,229		28,156		(679	)	2019
Garden Style Apartments	Richland, WA		23,254		2,725		27,396		51		1,145		2,776		28,541		31,317		(746	)	2019
Garden Style Apartments	Woodland, CA		19,226		3,201		29,394		—		137		3,201		29,531		32,732		(587	)	2019
Garden Style Apartments	Puyallup, WA		61,384		14,387		71,631		41		2,209		14,428		73,840		88,268		(1,445	)	2019
Garden Style Apartments	Orlando, FL		51,810		8,559		60,029		96		2,783		8,655		62,812		71,467		(1,387	)	2019
Garden Style Apartments	Charlotte, NC	(L)			12,883		86,351		65		242		12,948		86,593		99,541		(1,754	)	2019
Garden Style Apartments	Chandler, AZ		55,278		17,512		62,049		1		4		17,513		62,053		79,566		(376	)	2019
Garden Style Apartments	Ocoee, FL		63,292		17,226		76,229		—		—		17,226		76,229		93,455		(173	)	2019
Garden Style Apartments	Huntersville, NC		38,430		8,868		48,880		—		—		8,868		48,880		57,748		(111	)	2019
Garden Style Apartments	Arlington, TX		34,000		13,290		35,267		—		—		13,290		35,267		48,557		(80	)	2019
Garden Style Apartments	Orlando, FL		35,400		5,197		48,490		—		—		5,197		48,490		53,687		(95	)	2019
Garden Style Apartments	Oviedo, FL		38,878		7,594		49,002		—		—		7,594		49,002		56,596		(103	)	2019

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Garden Style Apartments	Largo, FL		45,600		8,822		56,744		1		3		8,823		56,747		65,570		(433	)	2019
Garden Style Apartments	Tampa, FL		37,375		8,514		45,818		—		—		8,514		45,818		54,332		(302	)	2019
Garden Style Apartments	Westminster, CO		54,625		6,235		72,861		24		112		6,259		72,973		79,232		(1,451	)	2019
Garden Style Apartments	Westminster, CO		52,723		6,523		66,313		—		32		6,523		66,345		72,868		(1,422	)	2019
Garden Style Apartments	Loveland, CO		36,127		5,020		42,672		—		31		5,020		42,703		47,723		(930	)	2019
Garden Style Apartments	Raleigh, NC	(K)			5,151		34,409		52		30		5,203		34,439		39,642		(870	)	2019
Garden Style Apartments	Jacksonville, FL	(K)			4,327		41,150		1		60		4,328		41,210		45,538		(979	)	2019
Garden Style Apartments	Henderson, NV		44,050		8,205		49,247		34		40		8,239		49,287		57,526		(1,047	)	2019
Garden Style Apartments	Oregon City, OR	(L)			34,849		29,218		2		—		34,851		29,218		64,069		(430	)	2019
Garden Style Apartments	Garner, NC		—		6,181		43,921		—		—		6,181		43,921		50,102		(257	)	2019
Garden Style Apartments	Northglenn, CO	(L)			14,198		126,170		1		5		14,199		126,175		140,374		(1,253	)	2019
Garden Style Apartments	Las Vegas, NV		51,900		16,341		60,038		—		30		16,341		60,068		76,409		(392	)	2019
Garden Style Apartments	Las Vegas, NV		42,500		10,559		50,075		—		42		10,559		50,117		60,676		(337	)	2019
Garden Style Apartments	Las Vegas, NV		35,500		9,308		43,490		—		32		9,308		43,522		52,830		(288	)	2019
Garden Style Apartments	Las Vegas, NV		23,500		6,257		27,266		2		24		6,259		27,290		33,549		(179	)	2019
Garden Style Apartments	Miami, FL		66,226		17,618		82,333		26		38		17,644		82,371		100,015		(1,813	)	2019
Garden Style Apartments	Miami, FL		69,753		17,721		81,590		80		57		17,801		81,647		99,448		(1,804	)	2019
Garden Style Apartments	Dunwoody, GA		27,400		2,837		39,187		3		15		2,840		39,202		42,042		(728	)	2019
Garden Style Apartments	Atlanta, GA		34,000		3,332		50,184		5		41		3,337		50,225		53,562		(928	)	2019
Garden Style Apartments	Atlanta, GA		35,000		4,203		51,699		1		19		4,204		51,718		55,922		(963	)	2019
Garden Style Apartments	Phoenix, AZ		72,818		18,048		78,354		9		26		18,057		78,380		96,437		(1,330	)	2019
Garden Style Apartments	Savannah, GA		28,925		5,613		35,434		22		7		5,635		35,441		41,076		(917	)	2019
Garden Style Apartments	Glendale, AZ		23,217		9,359		31,129		—		—		9,359		31,129		40,488		(217	)	2019
Garden Style Apartments	Austin, TX		—		10,358		51,589		—		—		10,358		51,589		61,947		(118	)	2019
Garden Style Apartments	Raleigh, NC		—		12,329		63,193		—		—		12,329		63,193		75,522		(553	)	2019
Student Housing	Tempe, AZ		97,149		14,180		111,719		2		201		14,182		111,920		126,102		(4,809	)	2018
Student Housing	Tuscaloosa, AL		65,931		16,579		74,404		—		428		16,579		74,832		91,411		(3,281	)	2018
Student Housing	Tucson, AZ		67,269		5,956		82,701		—		90		5,956		82,791		88,747		(3,550	)	2018
Student Housing	State College, PA		65,018		8,422		76,294		13		1,036		8,435		77,330		85,765		(3,455	)	2018
Student Housing	Blacksburg, VA		64,532		12,698		71,693		101		257		12,799		71,950		84,749		(3,283	)	2018
Student Housing	State College, PA		51,294		8,456		59,511		—		267		8,456		59,778		68,234		(2,690	)	2018
Student Housing	Orlando, FL		48,066		4,854		60,003		69		243		4,923		60,246		65,169		(2,671	)	2018
Student Housing	Charlottesville, VA		47,130		175		70,119		—		504		175		70,623		70,798		(3,029	)	2018
Student Housing	Boulder, CO		42,221		9,300		47,270		38		83		9,338		47,353		56,691		(2,100	)	2018
Student Housing	Greenville, NC		45,961		8,458		45,948		69		87		8,527		46,035		54,562		(2,040	)	2018
Student Housing	Tucson, AZ		39,290		5,128		57,842		—		23		5,128		57,865		62,993		(2,488	)	2018
Student Housing	Kent, OH		36,477		3,052		41,735		13		203		3,065		41,938		45,003		(1,853	)	2018
Student Housing	Riverside, CA		29,818		3,966		40,159		—		298		3,966		40,457		44,423		(1,723	)	2018
Student Housing	Louisville, KY		34,266		10,401		31,231		46		51		10,447		31,282		41,729		(1,415	)	2018
Student Housing	Charlottesville, VA		6,071		1,809		6,385		—		38		1,809		6,423		8,232		(284	)	2018
Student Housing	Boulder, CO		26,742		8,330		26,688		—		109		8,330		26,797		35,127		(1,187	)	2018

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Student Housing	Auburn, AL		21,924		3,835		28,175		—		—		3,835		28,175		32,010		(1,246	)	2018
Student Housing	Berkeley, CA		12,552		4,584		16,540		6		64		4,590		16,604		21,194		(735	)	2018
Student Housing	Charlottesville, VA		15,237		3,134		17,545		—		97		3,134		17,642		20,776		(760	)	2018
Student Housing	Athens, GA		46,200		4,931		68,771		4		335		4,935		69,106		74,041		(3,011	)	2018
Manufactured Housing Community	Phoenix, AZ		18,185		29,613		739		347		17		29,960		756		30,716		(830	)	2018
Manufactured Housing Community	Mesa, AZ		14,742		22,145		782		28		316		22,173		1,098		23,271		(932	)	2018
Manufactured Housing Community	Apache Junction, AZ		13,996		19,276		266		49		1,716		19,325		1,982		21,307		(900	)	2018
Manufactured Housing Community	Mesa, AZ		9,608		17,180		423		30		1		17,210		424		17,634		(653	)	2018
Manufactured Housing Community	Apache Junction, AZ		10,307		14,542		236		8		4		14,550		240		14,790		(466	)	2018
Manufactured Housing Community	Mesa, AZ		5,906		8,476		438		17		—		8,493		438		8,931		(337	)	2018
Manufactured Housing Community	Indio, CA		7,035		7,220		193		94		29		7,314		222		7,536		(357	)	2018
Manufactured Housing Community	San Marcos, CA		5,509		6,236		309		104		32		6,340		341		6,681		(298	)	2018
Manufactured Housing Community	Mesa, AZ		5,920		7,820		461		71		14		7,891		475		8,366		(327	)	2018
Manufactured Housing Community	Indio, CA		5,929		6,540		113		12		55		6,552		168		6,720		(424	)	2018
Manufactured Housing Community	Apache Junction, AZ		3,077		6,400		249		7		2		6,407		251		6,658		(300	)	2018
Manufactured Housing Community	Apache Junction, AZ		3,194		8,146		219		—		2		8,146		221		8,367		(320	)	2018
Manufactured Housing Community	Apache Junction, AZ		2,195		6,793		206		5		6		6,798		212		7,010		(285	)	2018
Manufactured Housing Community	Apache Junction, AZ		2,459		4,163		149		26		8		4,189		157		4,346		(219	)	2018
Manufactured Housing Community	Mesa, AZ		6,077		8,763		164		11		1		8,774		165		8,939		(502	)	2018
Manufactured Housing Community	Cottonwood, AZ		2,230		3,313		81		16		—		3,329		81		3,410		(175	)	2018
Manufactured Housing Community	Cottonwood, AZ		4,541		5,238		244		67		12		5,305		256		5,561		(376	)	2018
Manufactured Housing Community	Chandler, AZ		3,334		4,293		78		35		3		4,328		81		4,409		(156	)	2018
Manufactured Housing Community	Apache Junction, AZ		2,298		3,835		61		16		—		3,851		61		3,912		(139	)	2018
Manufactured Housing Community	Desert Hot Springs, CA		12,342		15,223		707		103		65		15,326		772		16,098		(850	)	2018
Manufactured Housing Community	Apache Junction, AZ		5,637		7,527		289		30		13		7,557		302		7,859		(314	)	2018
Manufactured Housing Community	Apache Junction, AZ		2,471		5,503		365		11		5		5,514		370		5,884		(292	)	2018
Manufactured Housing Community	Las Vegas, NV		6,075		7,682		220		39		91		7,721		311		8,032		(327	)	2018
Manufactured Housing Community	Tavares, FL		5,864		4,390		1,244		6		7		4,396		1,251		5,647		(338	)	2018
Manufactured Housing Community	Apache Junction, AZ		4,032		5,163		25		3		—		5,166		25		5,191		(204	)	2019
Manufactured Housing Community	Peoria, AZ		4,466		8,878		1,229		7		—		8,885		1,229		10,114		(348	)	2019
Manufactured Housing Community	Glendale, AZ		11,196		20,791		1,354		11		43		20,802		1,397		22,199		(552	)	2019
Manufactured Housing Community	Mesa, AZ		5,564		8,589		1,280		99		92		8,688		1,372		10,060		(387	)	2019
Manufactured Housing Community	Phoenix, AZ		6,495		8,996		500		7		—		9,003		500		9,503		(298	)	2019
Manufactured Housing Community	Naples, FL		—		3,664		383		—		9		3,664		392		4,056		(53	)	2019
Manufactured Housing Community	Waldorf, MD		4,754		5,741		656		13		28		5,754		684		6,438		(117	)	2019
Manufactured Housing Community	Winter Haven, FL		8,369		11,585		381		—		11		11,585		392		11,977		(103	)	2019
Manufactured Housing Community	Tarpon Springs, FL		7,547		8,980		491		5		181		8,985		672		9,657		(315	)	2019
Manufactured Housing Community	Chandler, AZ		—		12,110		321		—		—		12,110		321		12,431		(188	)	2019
Manufactured Housing Community	Phoenix, AZ		—		9,757		189		—		—		9,757		189		9,946		(187	)	2019
Manufactured Housing Community	Chandler, AZ		—		5,532		584		—		—		5,532		584		6,116		(102	)	2019
Total Multifamily Properties:		$	6,003,839	$	1,737,286	$	7,695,295	$	13,179	$	146,101	$	1,750,465	$	7,841,396	$	9,591,861	$	(376,063	)

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired

Net Lease Properties:
Bellagio	Las Vegas, NV	$	3,010,000	$	1,453,421	$	2,760,936	$	—	$	—	$	1,453,421	$	2,760,936	$	4,214,357	$	(14,836	)	2019
Total Net Lease Properties:		$	3,010,000	$	1,453,421	$	2,760,936	$	—	$	-	$	1,453,421	$	2,760,936	$	4,214,357	$	(14,836	)

Hotel Properties:
Full Service Hotel	Atlanta, GA	$	243,700	$	30,482	$	289,353	$	—	$	99	$	30,482	$	289,452	$	319,934	$	(3,184	)	2019
Full Service Hotel	San Antonio, TX		202,500		84,221		474,529		350		10,775		84,571		485,304		569,875		(36,639	)	2018
Select Service Hotel	Davis, CA		20,500		526		24,778		14		717		540		25,495		26,035		(5,257	)	2017
Select Service Hotel	San Jose, CA		26,654		10,746		36,138		58		1,767		10,804		37,905		48,709		(5,749	)	2017
Select Service Hotel	Oldsmar, FL		10,300		2,088		13,234		17		316		2,105		13,550		15,655		(2,047	)	2017
Select Service Hotel	Oldsmar, FL		6,800		1,069		8,724		—		683		1,069		9,407		10,476		(1,413	)	2017
Select Service Hotel	Temple Terrace, FL		10,000		2,706		12,351		87		502		2,793		12,853		15,646		(3,009	)	2017
Select Service Hotel	Lake Mary, FL		10,000		1,941		10,979		3		109		1,944		11,088		13,032		(1,891	)	2017
Select Service Hotel	Atlanta, GA		21,200		5,714		26,296		—		219		5,714		26,515		32,229		(3,688	)	2017
Select Service Hotel	Worcester, MA		14,200		1,646		20,149		15		712		1,661		20,861		22,522		(3,120	)	2017
Select Service Hotel	Worcester, MA		10,900		738		14,663		—		130		738		14,793		15,531		(1,611	)	2017
Select Service Hotel	Chelsea, MA		24,700		1,825		37,505		—		21		1,825		37,526		39,351		(3,704	)	2017
Select Service Hotel	Orlando, FL		21,700		2,836		19,097		—		—		2,836		19,097		21,933		(2,094	)	2018
Select Service Hotel	Orlando, FL		18,830		2,786		18,706		10		9		2,796		18,715		21,511		(1,979	)	2018
Select Service Hotel	Henderson, NV		11,000		1,764		15,784		—		104		1,764		15,888		17,652		(1,539	)	2018
Select Service Hotel	Henderson, NV		10,400		1,576		14,188		4		85		1,580		14,273		15,853		(1,340	)	2018
Select Service Hotel	Phoenix, AZ		12,400		3,265		14,456		—		52		3,265		14,508		17,773		(1,711	)	2018
Select Service Hotel	Tampa, FL		8,300		1,746		11,796		—		343		1,746		12,139		13,885		(1,048	)	2018
Select Service Hotel	Rohnert Park, CA		16,300		2,538		26,306		—		1,808		2,538		28,114		30,652		(1,897	)	2018
Select Service Hotel	Reno, NV		17,300		2,462		31,127		5		520		2,467		31,647		34,114		(2,292	)	2018
Select Service Hotel	Salt Lake City, UT		10,100		983		16,534		—		1,214		983		17,748		18,731		(1,020	)	2018
Select Service Hotel	Federal Way, WA		21,840		2,894		30,395		—		21		2,894		30,416		33,310		(1,666	)	2018
Select Service Hotel	Reno, NV		10,482		1,705		14,754		—		917		1,705		15,671		17,376		(1,743	)	2018
Select Service Hotel	Salt Lake City, UT		33,603		4,204		40,065		—		32		4,204		40,097		44,301		(2,097	)	2018
Select Service Hotel	Salt Lake City, UT		12,563		8,743		16,725		2		87		8,745		16,812		25,557		(1,024	)	2018
Select Service Hotel	Salt Lake City, UT		20,709		3,592		24,007		8		28		3,600		24,035		27,635		(1,902	)	2018
Select Service Hotel	Chicago,, IL		31,425		14,792		26,563		—		53		14,792		26,616		41,408		(457	)	2019
Select Service Hotel	Arlington, VA		68,500		55,827		43,821		—		6		55,827		43,827		99,654		(590	)	2019
Select Service Hotel	Kailua-Kona, HI		52,918		4,804		94,476		—		3,343		4,804		97,819		102,623		(4,501	)	2019
Select Service Hotel	Longmont, CO		3,280		1,779		7,670		10		—		1,789		7,670		9,459		(118	)	2019
Select Service Hotel	Miramar, FL		14,251		2,556		12,326		8		20		2,564		12,346		14,910		(199	)	2019
Select Service Hotel	Salt Lake City, UT		13,565		1,248		19,229		—		—		1,248		19,229		20,477		(279	)	2019
Select Service Hotel	Durham, NC		14,936		2,809		12,407		9		—		2,818		12,407		15,225		(190	)	2019
Select Service Hotel	West Palm Beach, FL		13,291		1,004		9,628		—		1		1,004		9,629		10,633		(151	)	2019
Select Service Hotel	Fort Walton Beach, FL		12,401		1,966		8,214		13		36		1,979		8,250		10,229		(124	)	2019

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Select Service Hotel	West Palm Beach, FL		12,743		1,651		8,083		—		8		1,651		8,091		9,742		(139	)	2019
Select Service Hotel	Denver, CO		11,853		3,950		10,417		—		197		3,950		10,614		14,564		(208	)	2019
Select Service Hotel	Clearwater, FL		11,167		2,648		8,186		—		13		2,648		8,199		10,847		(138	)	2019
Select Service Hotel	Longmont, CO		8,025		1,759		10,115		10		—		1,769		10,115		11,884		(147	)	2019
Select Service Hotel	Novi, MI		11,030		3,014		14,185		25		4		3,039		14,189		17,228		(221	)	2019
Select Service Hotel	Plantation, FL		15,141		1,675		12,110		9		5		1,684		12,115		13,799		(209	)	2019
Select Service Hotel	Miramar, FL		15,415		2,447		12,381		—		—		2,447		12,381		14,828		(199	)	2019
Select Service Hotel	Salt Lake City, UT		7,275		906		11,131		—		12		906		11,143		12,049		(165	)	2019
Select Service Hotel	Silver Spring, MD		15,415		3,310		11,947		9		—		3,319		11,947		15,266		(185	)	2019
Select Service Hotel	Longmont, CO		5,325		1,640		8,540		10		—		1,650		8,540		10,190		(128	)	2019
Select Service Hotel	Austin, TX		13,839		6,316		14,808		3		68		6,319		14,876		21,195		(254	)	2019
Select Service Hotel	San Antonio, TX		3,289		1,638		7,271		—		17		1,638		7,288		8,926		(109	)	2019
Select Service Hotel	San Antonio, TX		7,575		3,069		7,501		3		13		3,072		7,514		10,586		(120	)	2019
Select Service Hotel	Oak Brook, IL		17,265		—		21,829		13		3		13		21,832		21,845		(319	)	2019
Select Service Hotel	Bloomington, IN		15,141		—		24,783		—		1		—		24,784		24,784		(354	)	2019
Select Service Hotel	Glendale, AZ		10,183		4,776		12,590		—		—		4,776		12,590		17,366		(80	)	2019
Select Service Hotel	Glendale, AZ		7,374		3,821		10,838		—		—		3,821		10,838		14,659		(70	)	2019
Select Service Hotel	Colorado Springs, CO		7,000		4,258		9,733		—		—		4,258		9,733		13,991		(62	)	2019
Select Service Hotel	Colorado Springs, CO		8,000		4,434		12,588		—		—		4,434		12,588		17,022		(72	)	2019
Select Service Hotel	Colorado Springs, CO	(K)			3,985		6,823		—		—		3,985		6,823		10,808		(47	)	2019
Select Service Hotel	Colorado Springs, CO	(K)			4,735		6,842		—		—		4,735		6,842		11,577		(45	)	2019
Select Service Hotel	Colorado Springs, CO	(K)			3,185		12,941		—		—		3,185		12,941		16,126		(78	)	2019
Select Service Hotel	Colorado Springs, CO	(K)			5,930		10,342		—		—		5,930		10,342		16,272		(60	)	2019
Select Service Hotel	Scottsdale, AZ	(K)			5,384		11,639		—		—		5,384		11,639		17,023		(76	)	2019
Total Hotel Properties:		$	1,254,603	$	346,112	$	1,774,596	$	695	$	25,070	$	346,807	$	1,799,666	$	2,146,473	$	(104,758	)

Retail Properties:
Open Air Shopping Center	Philadelphia, PA	$	32,000	$	19,335	$	31,757	$	—	$	1,648	$	19,335	$	33,405	$	52,740	$	(3,735	)	2017
Open Air Shopping Center	Burbank, CA		27,390		24,100		18,316		149		900		24,249		19,216		43,465		(2,403	)	2017
Open Air Shopping Center	Miami, FL		20,250		17,085		14,996		22		—		17,107		14,996		32,103		(1,059	)	2018
Open Air Shopping Center	Brooklyn, NY		80,400		73,427		49,391		—		—		73,427		49,391		122,818		(141	)	2019
Open Air Shopping Center	Simi Valley, CA		23,600		22,282		13,400		—		—		22,282		13,400		35,682		(400	)	2019
Open Air Shopping Center	Pacoima, CA		31,200		38,015		9,103		—		—		38,015		9,103		47,118		(113	)	2019
Open Air Shopping Center	Signal Hill, CA		38,550		32,808		14,722		—		—		32,808		14,722		47,530		(149	)	2019
Total Retail Properties:		$	253,390	$	227,052	$	151,685	$	171	$	2,548	$	227,223	$	154,233	$	381,456	$	(8,000	)

Office Properties:
Office	Emeryville, CA		75,900		29,226		86,600		-		2,172		29,226		88,772		117,998		(619	)	2019
Total Office Properties:		$	75,900	$	29,226	$	86,600	$	-	$	2,172	$	29,226	$	88,772	$	117,998	$	(619	)

Other Properties:
Self Storage	Miami, FL	$	10,143	$	2,955	$	10,622	$	—	$	54	$	2,955	$	10,676	$	13,631	$	(152	)	2019
Self Storage	Fort Pierce, FL		5,903		1,619		7,147		—		—		1,619		7,147		8,766		(122	)	2019
Self Storage	Fort Myers, FL		3,914		1,456		4,214		—		—		1,456		4,214		5,670		(68	)	2019

				Initial Cost				Costs Capitalized Subsequent to Acquisition				Gross Amounts at which Carried at the Close of Period
Description	Location	Encumbrances		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Land and Land Improvements		Building and Building Improvements		Total		Accumulated Depreciation⁽¹⁾			Year Acquired
Self Storage	Winter Haven, FL		4,266		1,546		4,393		—		—		1,546		4,393		5,939		(99	)	2019
Self Storage	Dundee, FL		4,067		1,165		5,773		—		34		1,165		5,807		6,972		(87	)	2019
Self Storage	Fayetteville, NC		4,611		1,408		6,092		—		—		1,408		6,092		7,500		(95	)	2019
Self Storage	Fayetteville, NC		4,406		1,067		5,836		—		—		1,067		5,836		6,903		(90	)	2019
Self Storage	Hope Mills, NC		3,959		1,821		4,821		—		—		1,821		4,821		6,642		(83	)	2019
Self Storage	Vinton, VA		4,291		1,177		5,228		—		5		1,177		5,233		6,410		(81	)	2019
Self Storage	Raleigh, NC		3,728		1,094		4,344		—		—		1,094		4,344		5,438		(67	)	2019
Self Storage	Apex, NC		3,473		1,077		3,522		—		—		1,077		3,522		4,599		(55	)	2019
Self Storage	Raleigh, NC		2,744		1,000		1,637		—		—		1,000		1,637		2,637		(25	)	2019
Self Storage	Tallahassee, FL		6,715		3,092		7,174		—		—		3,092		7,174		10,266		(123	)	2019
Self Storage	Tallahassee, FL		2,942		705		3,735		—		—		705		3,735		4,440		(57	)	2019
Self Storage	Pensacola, FL		4,534		324		6,445		—		—		324		6,445		6,769		(93	)	2019
Self Storage	Neptune, NJ		7,111		1,997		8,606		—		—		1,997		8,606		10,603		(135	)	2019
Self Storage	Staten Island, NY		4,732		4,233		2,681		—		6		4,233		2,687		6,920		(40	)	2019
Self Storage	Chattanooga, TN		5,225		1,377		6,244		—		276		1,377		6,520		7,897		(95	)	2019
Self Storage	Belcamp, MD		5,001		791		6,503		—		3		791		6,506		7,297		(94	)	2019
Self Storage	Summerville, SC		3,306		3,117		2,225		—		20		3,117		2,245		5,362		(34	)	2019
Self Storage	Moncks Corner, SC		2,929		1,043		1,499		—		—		1,043		1,499		2,542		(25	)	2019
Total Other Properties:		$	98,000	$	34,064	$	108,741	$	-	$	398	$	34,064	$	109,139	$	143,203	$	(1,720	)

Portfolio Total		$	10,924,826	$	5,625,633	$	20,703,162	$	14,045	$	246,985	$	5,639,678	$	20,950,147	$	26,589,825	$	(752,354	)

The total included on Schedule III does not include Furniture, Fixtures and Equipment totaling $377.6 million. Accumulated Depreciation does not include $53.4 million of accumulated depreciation related to Furniture, Fixtures and Equipment.

The following table summarizes activity for real estate and accumulated depreciation for the year ended December 31, 2019 ($ in thousands):

		Page
PART I.

ITEM 1.	BUSINESS	1

ITEM 1A.	RISK FACTORS	7

ITEM 1B.	UNRESOLVED STAFF COMMENTS	71

ITEM 2.	PROPERTIES	71

ITEM 3.	LEGAL PROCEEDINGS	71

ITEM 4.	MINE SAFETY DISCLOSURES	71

PART II.

ITEM 5.	MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES	72

ITEM 6.	SELECTED FINANCIAL DATA	81

ITEM 7.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	82

ITEM 7A.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	87

ITEM 8.	FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA	89

ITEM 9.	CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE	93

ITEM 9A.	CONTROLS AND PROCEDURES	95

ITEM 9B.	OTHER INFORMATION	99

PART III.

ITEM 10.	DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE	100

ITEM 11.	EXECUTIVE COMPENSATION	100

ITEM 12.	SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS	100

ITEM 13.	CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE	100

ITEM 14.	PRINCIPAL ACCOUNTING FEES AND SERVICES	100

PART IV.

ITEM 15.	EXHIBITS, FINANCIAL STATEMENT SCHEDULES	101

ITEM 16.	FORM 10-K SUMMARY	103

SIGNATURES		104

Components of NAV	December 31, 2019
Investments in real properties	$	29,225,122
Investments in real estate debt		4,523,260
Cash and cash equivalents		204,269
Restricted cash		905,433
Other assets		202,904
Mortgage notes, term loans, and revolving credit facilities, net		(17,088,862	)
Repurchase agreements		(3,092,137	)
Subscriptions received in advance		(796,729	)
Other liabilities		(580,805	)
Accrued performance participation allocation		(141,396	)
Management fee payable		(13,873	)
Accrued stockholder servicing fees ⁽¹⁾		(4,946	)
Non-controlling interests in joint ventures		(240,936	)
Net asset value	$	13,101,304
Number of outstanding shares/units		1,145,030

NAV Per Share	Class S Shares		Class I Shares		Class T Shares		Class D Shares		Third-party Operating Partnership Units⁽¹⁾		Total
Monthly NAV	$	6,089,730	$	5,429,223	$	447,952	$	956,816	$	177,583	$	13,101,304
Number of outstanding shares/units		530,812		474,279		39,768		84,658		15,513		1,145,030
NAV Per Share/Unit as of December 31, 2019	$	11.4725	$	11.4473	$	11.2642	$	11.3022	$	11.4473

Property Type	Discount Rate	Exit Capitalization Rate
Multifamily	7.8%	5.3%
Industrial	7.3%	5.7%
Hotel	9.2%	9.5%
Retail	7.7%	6.0%
Other	7.3%	7.1%

	December 31, 2019
Stockholders’ equity under U.S. GAAP	$	10,305,132
Non-controlling interests attributable to BREIT OP unitholders		151,721
Redeemable non-controlling interest		272
Total partners' capital of BREIT OP		10,457,125
Adjustments:
Accrued stockholder servicing fee		473,593
Organization and offering costs		6,136
Accrued affiliate incentive compensation awards		(14,655	)
Unrealized net real estate and debt appreciation		864,880
Accumulated depreciation and amortization		1,314,225
NAV	$	13,101,304

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
		Emerging growth company	☐

	•	we would be taxed as a regular domestic corporation, which under current laws, among other things, means being unable to deduct distributions to stockholders in computing taxable income and being subject to federal income tax on our taxable income at regular corporate income tax rates;
	•	any resulting tax liability could be substantial and could have a material adverse effect on our book value;
	•	unless we were entitled to relief under applicable statutory provisions, we would be required to pay taxes, and therefore, our cash available for distribution to stockholders would be reduced for each of the years during which we did not qualify as a REIT and for which we had taxable income; and
	•	we generally would not be eligible to requalify as a REIT for the subsequent four full taxable years.

Declaration Date	Class S Shares		Class I Shares		Class T Shares		Class D Shares
January 31, 2019	$	0.0451	$	0.0530	$	0.0452	$	0.0507
February 28, 2019		0.0451		0.0522		0.0452		0.0501
March 31, 2019		0.0451		0.0530		0.0452		0.0507
April 30, 2019		0.0451		0.0528		0.0453		0.0506
May 31, 2019		0.0451		0.0531		0.0453		0.0508
June 30, 2019		0.0451		0.0529		0.0453		0.0506
July 31, 2019		0.0451		0.0531		0.0452		0.0508
August 31, 2019		0.0451		0.0532		0.0452		0.0508
September 30, 2019		0.0451		0.0531		0.0453		0.0508
October 31, 2019		0.0451		0.0534		0.0452		0.0510
November 30, 2019		0.0451		0.0531		0.0452		0.0508
December 31, 2019		0.0451		0.0534		0.0452		0.0510
Total	$	0.5412	$	0.6363	$	0.5428	$	0.6087

	For the Year Ended December 31, 2019					For the Year Ended December 31, 2018					For the Year Ended December 31, 2017
	Amount		Percentage			Amount		Percentage			Amount		Percentage
Distributions
Payable in cash	$	169,669		39	%	$	63,631		37	%	$	15,825		34	%
Reinvested in shares		263,897		61	%		110,228		63	%		30,435		66	%
Total distributions	$	433,566		100	%	$	173,859		100	%	$	46,260		100	%
Sources of Distributions
Cash flows from operating activities	$	433,566		100	%	$	173,859		100	%	$	46,260		100	%
Offering proceeds		—		—	%		—		—	%		—		—	%
Total sources of distributions	$	433,566		100	%	$	173,859		100	%	$	46,260		100	%

Cash flows from operating activities	$	600,927				$	252,682				$	72,285
Funds from Operations	$	358,565				$	110,527				$	33,831
Adjusted Funds from Operations	$	420,284				$	164,597				$	47,429
Funds Available for Distribution	$	409,385				$	168,009				$	45,822

Month of:	Total Number of Shares Repurchased⁽¹⁾		Repurchases as a Percentage of Shares Outstanding			Average Price Paid per Share		Total Number of Shares Repurchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares Pending Repurchase Pursuant to Publicly Announced Plans or Programs⁽²⁾
October 2019		930,992		0.10	%	$	11.37		930,992		—
November 2019		1,037,986		0.10	%		11.38		1,037,986		—
December 2019		4,651,241		0.41	%		11.43		4,651,241		—
Total		6,620,219	N/M			$	11.41		6,620,219		—

										For the Period March 2, 2016 through
	For the Year Ended December 31,									December 31,
	2019			2018			2017			2016
Operating Data (in thousands)
Total revenues	$	1,686,272		$	723,258		$	157,932		$	—
Total expenses		1,866,396			837,761			226,858			115
Total other income (expense)		(234,119	)		(176,962	)		(18,624	)		—
Net loss		(414,243	)		(291,465	)		(87,550	)		(115	)
Net loss attributable to BREIT stockholders	$	(401,771	)	$	(281,056	)	$	(86,258	)	$	(115	)

Per Share Data
Net loss per share of common stock — basic and diluted	$	(0.54	)	$	(0.91	)	$	(0.90	)	$	(5.74	)
Gross distributions declared per share of common stock⁽¹⁾	$	0.64		$	0.63		$	0.48		$	—

Balance Sheet Data (in thousands)
Total assets	$	33,039,823		$	13,237,158		$	4,625,308		$	200
Real estate, net		26,326,868			10,259,687			3,406,555			—
Investments in real estate debt		4,523,260			2,259,913			915,742			—
Mortgage notes, term loans, and revolving credit facilities, net		16,929,659			6,833,269			2,111,291			—
Repurchase agreements		3,092,137			1,713,723			682,848			—
Total equity		10,614,648			3,914,954			1,509,639			85

Segment	Number of Properties		Sq. Feet (in thousands)/ Units/Keys	Occupancy Rate⁽¹⁾	Average Effective Annual Base Rent Per Leased Square Foot or Unit⁽²⁾		Gross Asset Value⁽³⁾ ($ in thousands)		Segment Revenue ($ in thousands)		Percentage of Total Revenue
Industrial		766	126,922 sq. ft.	95%	$	5.63	$	11,076,936	$	464,251	28%
Multifamily⁽⁴⁾		199	62,534 units	94%	$	13,309		10,879,828		712,513	42%
Net Lease		1	8,507 sq. ft.	N/A	N/A			4,265,530		42,317	3%
Hotel		59	9,964 keys	78%	$167.60/$131.28			2,296,929		441,750	26%
Retail		7	1,244 sq. ft.	99%	$	22.17		427,170		16,267	1%
Office		1	228 sq. ft.	95%	$	24.56		126,358		2,205		—%
Other		21	1,347 sq. ft.	87%	$	11.35		152,371		6,969		—%
Total		1,054					$	29,225,122	$	1,686,272	100%

Year	Number of Expiring Leases		Annualized Base Rent⁽¹⁾		% of Total Annualized Base Rent Expiring	Square Feet		% of Total Square Feet Expiring
2020		353	$	64,345,312	7%		11,794,010	9%
2021		437		99,418,449	11%		19,205,024	15%
2022		466		110,931,079	12%		18,740,450	15%
2023		346		114,364,545	12%		19,580,541	16%
2024		306		76,281,679	8%		12,066,080	10%
2025		147		43,689,482	5%		7,272,654	6%
2026		63		50,780,787	5%		11,708,710	9%
2027		64		48,297,369	5%		7,726,245	6%
2028		48		28,183,839	3%		3,286,971	3%
2029		42		27,093,309	3%		3,839,062	3%
Thereafter		86		280,237,646	30%		9,874,102	8%
Total		2,358	$	943,623,496	100%		125,093,849	100%

	For the Year Ended December 31,						2019 vs. 2018
	2019			2018			$
Revenues
Rental revenue	$	1,201,613		$	558,664		$	642,949
Hotel revenue		432,892			138,433			294,459
Other revenue		51,767			26,161			25,606
Total revenues		1,686,272			723,258			963,014
Expenses
Rental property operating		469,966			243,093			226,873
Hotel operating		304,710			97,248			207,462
General and administrative		18,170			10,982			7,188
Management fee		108,115			42,659			65,456
Performance participation allocation		141,396			37,484			103,912
Depreciation and amortization		824,039			406,295			417,744
Total expenses		1,866,396			837,761			1,028,635
Other income (expense)
Income from investments in real estate debt		213,062			55,323			157,739
Net gain on dispositions of real estate		35,035			—			35,035
Interest income		3,041			410			2,631
Interest expense		(487,517	)		(233,184	)		(254,333	)
Other income (expense)		2,260			489			1,771
Total other income (expense)		(234,119	)		(176,962	)		(57,157	)
Net loss	$	(414,243	)	$	(291,465	)	$	(122,778	)
Net loss attributable to non-controlling interests in third party joint ventures	$	5,671		$	6,188		$	(517	)
Net loss attributable to non-controlling interests in BREIT OP		6,801			4,221			2,580
Net loss attributable to BREIT stockholders	$	(401,771	)	$	(281,056	)	$	(120,715	)
Net loss per share of common stock — basic and diluted	$	(0.54	)	$	(0.91	)	$	0.37

	Year Ended December 31,						2019 vs. 2018
	2019			2018			$			%
Net loss attributable to BREIT stockholders	$	(401,771	)	$	(281,056	)	$	(120,715	)	43%
Adjustments to reconcile to same property NOI
General and administrative		18,170			10,982			7,188		65%
Management fee		108,115			42,659			65,456		153%
Performance participation allocation		141,396			37,484			103,912		277%
Affiliate incentive compensation awards		2,000			4,714			(2,714	)	(58%)
Depreciation and amortization		824,039			406,295			417,744		103%
Income from investment in real estate debt		(213,062	)		(55,323	)		(157,739	)	285%
Net gain on dispositions of real estate		(35,035	)		—			(35,035	)	N/M
Interest income		(3,041	)		(410	)		(2,631	)	642%
Interest expense		487,517			233,184			254,333		109%
Other income (expense)		(2,260	)		(489	)		(1,771	)	362%
Net loss attributable to non-controlling interests in third party joint ventures		(5,671	)		(6,188	)		517		(8%)
Net loss attributable to non-controlling interests in BREIT OP		(6,801	)		(4,221	)		(2,580	)	61%
NOI		913,596			387,631			525,965		136%
Non-same property NOI		723,107			203,834			519,273		255%
Same property NOI	$	190,489		$	183,797		$	6,692		4%

					2019 vs. 2018
								Change in Average
								Effective Annual
	Year Ended December 31,				Change in Base		Change in	Base Rent Per Leased
	2019		2018		Rental Revenue		Occupancy Rate	Square Foot/Unit⁽¹⁾
Multifamily	$	193,301	$	186,855	$	6,446	—%	+3%
Industrial		42,075		41,701		374	(1%)	+2%
Retail		7,263		7,188		75	—%	+1%
Total base rental revenue	$	242,639	$	235,744	$	6,895

					Principal Balance as Of
Indebtedness	Weighted Average Interest Rate⁽¹⁾	Weighted Average Maturity Date⁽²⁾⁽³⁾	Maximum Facility Size		December 31, 2019		December 31, 2018
Fixed rate
Fixed rate mortgages	3.80%	6/2/2027	N/A		$	12,424,717	$	4,782,326
Mezzanine loan	5.85%	4/5/2025	N/A			195,878		200,000
Total fixed rate loans	3.83%	5/21/2027				12,620,595		4,982,326
Variable rate
Floating rate mortgages	L+1.71%	11/24/2025	N/A			1,826,435		675,116
Variable rate term loans	L+1.58%	3/25/2024	N/A			1,533,561		603,500
Variable rate secured revolving credit facilities	L+1.54%	6/17/2025	$	2,233,020		1,063,837		624,200
Total variable rate loans	L+1.63%	3/19/2025				4,423,833		1,902,816
Total loans secured by the Company's properties	3.74%	7/30/2027				17,044,428		6,885,142

Repurchase agreement borrowings secured by our real estate debt securities:
Barclays MRA		9/29/2021		750,000		750,000		750,000
Other MRAs⁽⁴⁾		5/7/2020	N/A			2,342,137		963,723
Total repurchase agreement borrowings secured by our real estate debt securities⁽⁵⁾	2.95%					3,092,137		1,713,723

Unsecured loans:
Affiliate line of credit	L+2.50%	1/22/2021		250,000		—		—
Variable rate revolving facilities	L+2.50%	2/22/2023		900,000		—		—
Total unsecured loans	L+2.50%	9/9/2022		1,150,000		—		—
					.		.
Total indebtedness					$	20,136,565	$	8,598,865

Obligations	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Indebtedness ⁽¹⁾	$	24,648,190	$	3,129,536	$	2,760,747	$	4,981,395	$	13,776,512
Ground leases		969,755		6,874		14,321		14,943		933,617
Organizational and offering costs		6,136		2,045		4,091		—		—
Other		15,031		3,766		7,658		3,607		—
Total	$	25,639,112	$	3,142,221	$	2,786,817	$	4,999,945	$	14,710,129

Exhibit Number		Exhibit Description

3.1		Second Articles of Amendment and Restatement of the Company (filed as Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on July 27, 2017 and incorporated herein by reference)

3.2	Articles of Amendment and Restatement of Blackstone Real Estate Income Trust, Inc., dated August 15, 2019 (filed as Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed on August 16, 2019 and incorporated herein by reference)

3.3		Amended and Restated Bylaws of Blackstone Real Estate Income Trust, Inc. (files as Exhibit 3.2 to the Registrant’s Registration Statement on Form S-11, filed on August 30, 2016 (file number 333-213043) and incorporated herein by reference)

4.1		Share Repurchase Plan (filed as Exhibit 4.2 to the Registrant's Quarterly Report on Form 10-Q filed on November 13, 2018 and incorporated herein by reference)

4.2		Distribution Reinvestment Plan (filed as Exhibit 4.1 to the Registrant’s Quarterly Report on Form 10-Q filed on November 13, 2018 and incorporated herein by reference)

4.3*		Description of Securities of Blackstone Real Estate Income Trust. Inc.

10.1		Second Amended and Restated Advisory Agreement, by and among Blackstone Real Estate Income Trust, Inc., BREIT Operating Partnership, L.P. and BX REIT Advisors L.L.C. (filed as Exhibit 10.1 to the Registrant's Annual Report on Form 10-K filed on March 19, 2018 and incorporated herein by reference)

10.2		Amended and Restated Limited Partnership Agreement of BREIT Operating Partnership L.P., by and between Blackstone Real Estate Income Trust, Inc., BREIT Special Limited Partner L.P. (fka BREIT Special Limited Partner L.L.C.) and the limited partners party thereto from time to time (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on July 27, 2018 and incorporated herein by reference)

10.3		Registration Rights Agreement, by and among Blackstone Real Estate Income Trust, Inc., BREIT Special Limited Partner L.L.P. (f/k/a BREIT Special Limited Partner L.L.C.) and BX REIT Advisors L.L.C. (filed as Exhibit 10.3 to the Registrant’s Quarterly Report on Form 10-Q filed on November 14, 2016 and incorporated herein by reference)

10.4		Trademark License Agreement, by and among Blackstone TM L.L.C., Blackstone Real Estate Income Trust, Inc. and BREIT Operating Partnership L.P. (filed as Exhibit 10.5 to the Registrant’s Quarterly Report on Form 10-Q filed on November 14, 2016 and incorporated herein by reference)

10.5		Valuation Services Agreement, by and among Altus Group U.S. Inc., Blackstone Real Estate Income Trust, Inc. and BREIT Operating Partnership L.P. (filed as Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q filed on November 14, 2016 and incorporated herein by reference)

10.6		Form of Indemnification Agreement (filed as Exhibit 10.7 to the Registrant’s Registration Statement on Form S-11 filed on August 30, 2016 (file number 333-213043) and incorporated herein by reference)

10.7		Form of Independent Directors Restricted Stock Award Agreement (filed as Exhibit 10.8 to the Registrant’s Registration Statement on Form S-11on August 30, 2016 (file number 333-213043) and incorporated herein by reference)

10.8		Purchase and Sale Agreement, dated January 20, 2017, between a subsidiary of the Company and 173ODRE9 GL Owner, LLC (filed as Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on January 23, 2017 and incorporated herein by reference)

10.9		Uncommitted Unsecured Line of Credit, dated January 23, 2017, between the Company, as borrower, and Blackstone Holdings Finance Co. L.L.C., as lender (filed as Exhibit 10.2 to the Registrant’s Current Report on Form 8-K filed on January 23, 2017 and incorporated herein by reference)

10.10		Transaction Agreement, dated as of June 2, 2019, by and among the Sellers named therein, the Acquired Companies named therein, the Seller Representative named therein, BRE Jupiter LLC, GLP US Management Holdings LLC and the Merger Subs named therein (filed as Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed on August 14, 2019 and incorporated herein by reference)

10.11		Memorandum of Designation and Understanding, dated as of June 2, 2019, by and among BRE Jupiter LLC, Blackstone Real Estate Partners VIII L.P., Blackstone Real Estate Partners IX L.P. and Blackstone Real Estate Income Trust, Inc. (filed as Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed on August 14, 2019 and incorporated herein by reference)

10.12*		Lease, dated as of November 15, 2019, by and between BCORE Paradise LLC and Bellagio LLC

10.13		Amended and Restated Dealer Manager Agreement, by and between Blackstone Real Estate Income Trust, Inc. and Blackstone Advisory Partners L.P. (incorporated by reference to Exhibit 1.1 to the Registrant’s Current Report on Form 8-K, as filed by the Registrant with the Securities and Exchange Commission on May 1, 2018)

10.14		Form of Selected Dealer Agreement (incorporated by reference to Exhibit 1.2 to the Registrant’s Current Report on Form 8-K, as filed by the Registrant with the Securities and Exchange Commission on May 1, 2018)

21.1*		Subsidiaries of the Registrant

31.1*		Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2*		Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1*		Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*		Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101.INS+		XBRL Instance Document

101.SCH+		XBRL Taxonomy Extension Schema Document

101.SCH+		XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB+		XBRL Taxonomy Extension Label Linkbase Document

101.PRE+		XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF+		XBRL Taxonomy Extension Definition Linkbase Document

		BLACKSTONE REAL ESTATE INCOME TRUST, INC.

March 24, 2020		/s/ Frank Cohen
Date		Frank Cohen
		Chief Executive Officer
		(Principal Executive Officer)


Consolidated Financial Statements:

Consolidated Balance Sheets as of December 31, 2019 and 2018	F-3

Consolidated Statements of Operations for Years Ended December 31, 2019, 2018 and 2017	F-4

Consolidated Statements of Changes in Equity for the Years Ended December 31, 2019, 2018 and 2017	F-5

Consolidated Statements of Cash Flows for Years Ended December 31, 2019, 2018 and 2017	F-6

Notes to Consolidated Financial Statements	F-8

	December 31, 2019			December 31, 2018
Assets
Investments in real estate, net	$	26,326,868		$	10,259,687
Real estate debt investments		4,523,260			2,259,913
Cash and cash equivalents		204,269			68,089
Restricted cash		905,433			238,524
Other assets		1,079,993			410,945
Total assets	$	33,039,823		$	13,237,158

Liabilities and Equity
Mortgage notes, term loans, and secured revolving credit facilities, net	$	16,929,659		$	6,833,269
Repurchase agreements		3,092,137			1,713,723
Unsecured revolving credit facilities		—			—
Due to affiliates		690,143			301,581
Accounts payable, accrued expenses, and other liabilities		1,692,087			464,398
Total liabilities		22,404,026			9,312,971

Commitments and contingencies		—			—
Redeemable non-controlling interests		21,149			9,233

Equity
Preferred stock, $0.01 par value per share, 100,000 shares authorized; no shares issued and outstanding as of December 31, 2019 and 2018		—			—
Common stock — Class S shares, $0.01 par value per share, 1,000,000 shares authorized; 530,813 and 276,989 shares issued and outstanding as of December 31, 2019 and 2018, respectively		5,308			2,770
Common stock — Class I shares, $0.01 par value per share, 1,000,000 shares authorized; 474,279 and 108,261 shares issued and outstanding as of December 31, 2019 and 2018, respectively		4,743			1,083
Common stock — Class T shares, $0.01 par value per share, 500,000 shares authorized; 39,767 and 23,313 shares issued and outstanding as of December 31, 2019 and 2018, respectively		398			233
Common stock — Class D shares, $0.01 par value per share, 500,000 shares authorized; 84,657 and 30,375 shares issued and outstanding as of December 31, 2019 and 2018, respectively		847			304
Additional paid-in capital		11,716,721			4,327,444
Accumulated deficit and cumulative distributions		(1,422,885	)		(587,548	)
Total stockholders' equity		10,305,132			3,744,286
Non-controlling interests attributable to third party joint ventures		157,795			75,592
Non-controlling interests attributable to BREIT OP unitholders		151,721			95,076
Total equity		10,614,648			3,914,954
Total liabilities and equity	$	33,039,823		$	13,237,158

Non-cash investing and financing activities:
Assumption of mortgage notes in conjunction with acquisitions of real estate	$	1,202,713	$	208,480	$	199,365
Assumption of other liabilities in conjunction with acquisitions of real estate	$	71,784	$	66,525	$	23,008
Issuance of BREIT OP units as consideration for acquisitions of real estate	$	64,698	$	—	$	—
Recognition of financing lease liability	$	56,008	$	—	$	—
Assumed operating ground lease liabilities	$	50,612	$	—	$	—
Acquired non-controlling interests	$	—	$	12,802	$	—
Accrued capital expenditures and acquisition related costs	$	17,589	$	2,452	$	2,109
Contributions from non-controlling interests	$	2,520	$	—	$	—
Accrued distributions	$	34,849	$	13,644	$	7,716
Accrued stockholder servicing fee due to affiliate	$	240,043	$	136,420	$	102,076
Accrued offering costs due to affiliate	$	—	$	—	$	8,322
Redeemable non-controlling interest issued as settlement of performance participation allocation	$	37,484	$	16,974	$	—
Exchange of redeemable non-controlling interest for Class I shares	$	11,620	$	—	$	—
Allocation to redeemable non-controlling interest	$	6,830	$	2,192	$	—
Distribution reinvestment	$	245,335	$	101,985	$	25,527
Accrued common stock repurchases	$	46,247	$	6,961	$	—
Payable for investments in real estate debt	$	362	$	—	$	—
Issuance of BREIT OP units as settlement of affiliate incentive compensation awards	$	4,714	$	—	$	—

Description		Depreciable Life
Building		30 - 42 years
Building- and land improvements		10 years
Furniture, fixtures and equipment		1 - 10 years
Lease intangibles		Over lease term

Segment and Investment	Number of Transactions		Number of Properties		Sq. Feet (in thousands)/ Units/ Keys⁽¹⁾	Purchase Price⁽²⁾
Industrial:
Jupiter 12 Industrial Portfolio		1		316	63,965 sq. ft.	$	5,466,697
Other industrial properties		8		127	12,927 sq. ft.		1,118,566
Total Industrial properties		9		443	76,892 sq. ft.		6,585,263

Multifamily:
Roman Multifamily Portfolio		1		14	3,743 units		857,540
Other multifamily properties		31		64	19,576 units		3,679,446
Total Multifamily properties		32		78	23,319 units		4,536,986

Net Lease:
Bellagio		1		1	8,507 sq. ft.		4,265,530
Total Net Lease properties		1		1	8,507 sq. ft.		4,265,530

Hotel properties		5		34	5,826 keys		1,053,166

Retail properties		4		4	750 sq. ft.		282,072

Office properties		1		1	228 sq. ft.		123,348

Other properties		1		21	1,347 sq. ft.		150,703

Total Investments in Real Estate		53		582		$	16,997,068


Assets:	December 31, 2019
Investments in real estate, net	$	141,344
Other assets		2,035
Total assets	$	143,379

Liabilities:
Mortgage notes, term loans, and secured revolving credit facilities, net	$	104,314
Other liabilities		4,097
Total liabilities	$	108,411

	December 31, 2019			December 31, 2018
Intangible assets:
In-place lease intangibles	$	811,254		$	354,261
Above-market lease intangibles		42,483			21,626
Prepaid ground lease intangibles		—			16,114
Below-market ground lease intangibles		—			5,415
Other		26,400			5,676
Total intangible assets		880,137			403,092
Accumulated amortization:
In-place lease amortization		(200,629	)		(104,745	)
Above-market lease amortization		(10,977	)		(4,903	)
Prepaid ground lease amortization		—			(378	)
Below-market ground lease amortization		—			(162	)
Other		(3,189	)		(246	)
Total accumulated amortization		(214,795	)		(110,434	)
Intangible assets, net	$	665,342		$	292,658
Intangible liabilities:
Below-market lease intangibles	$	167,032		$	62,199
Above-market ground lease intangibles		—			4,657
Total intangible liabilities		167,032			66,856
Accumulated amortization:
Below-market lease amortization		(30,078	)		(11,132	)
Above-market ground lease amortization		—			(15	)
Total accumulated amortization		(30,078	)		(11,147	)
Intangible liabilities, net	$	136,954		$	55,709

	In-place Lease Intangibles		Above-market Lease Intangibles		Below-market Lease Intangibles
2020	$	212,672	$	8,242	$	(30,025	)
2021		128,309		7,296		(26,403	)
2022		88,947		5,707		(21,074	)
2023		60,529		3,423		(17,174	)
2024		39,089		2,280		(13,853	)
Thereafter		81,079		4,558		(28,425	)
	$	610,625	$	31,506	$	(136,954	)

	Fair Value				Interest Income
	Year Ended December 31,				Year Ended December 31,
	2019		2018		2019		2018		2017
CMBS collateralized by properties	$	1,418,056	$	919,392	$	52,562	$	38,581	$	8,917
CMBS collateralized by a loan		155,978		163,404		7,993		5,423		1,310
Loans collateralized by properties		134,076		—		—		—		—
Total	$	1,708,110	$	1,082,796	$	60,555	$	44,004	$	10,227

					Principal Balance Outstanding⁽³⁾
Indebtedness	Weighted Average Interest Rate⁽¹⁾	Weighted Average Maturity Date⁽²⁾	Maximum Facility Size		December 31, 2019			December 31, 2018
Fixed rate
Fixed rate mortgages	3.80%	6/2/2027	N/A		$	12,424,717		$	4,782,326
Mezzanine loan	5.85%	4/5/2025	N/A			195,878			200,000
Total fixed rate loans	3.83%	5/21/2027				12,620,595			4,982,326
Variable rate
Floating rate mortgages	L+1.71%	11/24/2025	N/A			1,826,435			675,116
Variable rate term loans	L+1.58%	3/25/2024	N/A			1,533,561			603,500
Variable rate secured revolving credit facilities	L+1.54%	6/17/2025	$	2,233,020		1,063,837			624,200
Total variable rate loans	L+1.63%	3/19/2025				4,423,833			1,902,816
Total loans secured by the Company's properties	3.74%	7/30/2027				17,044,428			6,885,142
Premium on assumed debt, net						10,794			1,673
Deferred financing costs, net						(125,563	)		(53,546	)
Mortgage notes, term loans, and secured revolving credit facilities, net					$	16,929,659		$	6,833,269

	December 31, 2019		December 31, 2018
Real estate intangibles, net	$	665,342	$	292,658
Held for sale assets		143,379		—
Receivables		101,106		45,799
Straight-line rent receivable		38,287		10,337
Deferred leasing costs, net		28,792		7,621
Deferred financing costs, net		28,494		5,822
Prepaid expenses		28,334		10,746
Pre-acquisition costs		9,861		15,361
Other		36,398		22,601
Total	$	1,079,993	$	410,945

Classification	Number of Shares (in thousands)		Par Value
Preferred Stock		100,000	$	0.01
Class S Shares		1,000,000	$	0.01
Class I Shares		1,000,000	$	0.01
Class T Shares		500,000	$	0.01
Class D Shares		500,000	$	0.01
Total		3,100,000

	Year Ended December 31, 2019
	Class S			Class I		Class T			Class D
Gross distributions declared per share of common stock	$	0.6363		$	0.6363	$	0.6363		$	0.6363
Stockholder servicing fee per share of common stock		(0.0951	)		—		(0.0935	)		(0.0276	)
Net distributions declared per share of common stock	$	0.5412		$	0.6363	$	0.5428		$	0.6087

	Year Ended December 31, 2018
	Class S			Class I		Class T			Class D
Gross distributions declared per share of common stock	$	0.6286		$	0.6286	$	0.6286		$	0.6286
Stockholder servicing fee per share of common stock		(0.0917	)		—		(0.0902	)		(0.0267	)
Net distributions declared per share of common stock	$	0.5369		$	0.6286	$	0.5384		$	0.6019