5. Investments in Real Estate-Related Securities

The following table details the Company’s investments in CMBS as of September 30, 2017 ($ in thousands):

Number of Investments		Credit Rating⁽¹⁾	Collateral	Weighted Average Coupon⁽²⁾	Weighted Average Maturity Date	Face Amount		Cost Basis		Fair Value
	5	BBB	Office, Hospitality, Industrial, Retail	L+2.16%	4/28/2030	$	132,034	$	132,034	$	132,363
	11	BB	Hospitality, Office, Retail, Multifamily	L+3.22%	4/5/2034		333,578		333,466		333,777
	8	B	Hospitality, Office, Multifamily	L+4.12%	11/30/2032		177,950		177,878		178,231
	24					$	643,562	$	643,378	$	644,371

(1)

BBB represents credit ratings of BBB+, BBB, and BBB-, BB represents credit ratings of BB+, BB, and BB-, and B represents credit ratings of B+, B, and B-.

(2)

The term “L” refers to the three-month U.S. dollar-denominated London Interbank Offer Rate (“LIBOR”). As of September 30, 2017, three-month LIBOR was equal to 1.3%.

As of September 30, 2017, the Company’s investments in real estate-related securities included 11 CMBS with a total cost basis of $369.3 million collateralized by properties owned by Blackstone-advised investment vehicles and three CMBS with a total cost basis of $63.5 million collateralized by a loan originated by a Blackstone-advised investment vehicle. Such CMBS were purchased in fully or over-subscribed offerings. Each investment in such CMBS by Blackstone and its affiliates (including the Company) represented no more than a 49% 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, or have an interest in a different part of the capital structure related to such CMBS. For the three and nine months ended September 30, 2017, the Company recorded interest income of $3.1 million and $4.3 million, respectively, related to its investments in such CMBS. Such amounts were reported as a component of Income From Real Estate-Related Securities on the Company’s Consolidated Statements of Operations.

As described in Note 2, the Company classifies its investments in real estate-related securities as trading and records these investments at fair value in Real Estate-Related Securities on the Company’s Consolidated Balance Sheets. During the three and nine months ended September 30, 2017, the Company recorded an unrealized loss of $0.6 million and an unrealized gain of $1.0 million, respectively, as a component of Income From Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. During the nine months ended September 30, 2017, one of the Company’s CMBS investments was repaid and the Company recorded a realized loss of $0.2 million as a component of Income From Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. The Company did not sell any securities during the three and nine months ended September 30, 2017.