5. Investments in Real Estate-Related Securities

The following table details the Company’s investments in real estate-related securities, which consisted solely of CMBS as of December 31, 2017 ($ in thousands):

Number of Positions		Credit Rating⁽¹⁾	Collateral	Weighted Average Coupon⁽²⁾	Weighted Average Maturity Date	Face Amount		Cost Basis		Fair Value
	15	BB	Hospitality, Office, Residential, Retail	L+3.21%	2/1/2033	$	423,770	$	423,658	$	424,419
	10	B	Hospitality, Office, Residential	L+4.05%	6/27/2034		284,371		284,127		285,037
	9	BBB	Office, Hospitality, Residential, Industrial, Retail	L+2.28%	8/17/2032		194,013		193,838		194,549
	3	Other	Residential	L+2.50%	9/15/2026		11,749		11,749		11,737
	37					$	913,903	$	913,372	$	915,742

(1)	BBB represents credit ratings of BBB+, BBB, and BBB-, BB represents credit ratings of BB+, BB, and BB-, and B represents credit ratings of B+, B, and B-. Other consists of investments that, as of December 31, 2017, were either not ratable or have not been submitted to ratings agencies.

(2)	The term “L” refers to the three-month U.S. dollar-denominated London Interbank Offer Rate (“LIBOR”). As of December 31, 2017, three-month LIBOR was equal to 1.7%.

As of December 31, 2017, the Company’s investments in real estate-related securities included 18 CMBS with a total cost basis of $559.6 million collateralized by properties owned by Blackstone-advised investment vehicles and three CMBS with a total cost basis of $63.5 million collateralized by a loan originated by a Blackstone-advised investment vehicle. Such CMBS were purchased in fully or over-subscribed offerings. Each investment in such CMBS by Blackstone and its affiliates (including the Company) represented a minority participation in any individual tranche. The Company acquired its minority participation interests from third-party investment banks on market terms negotiated by the majority third-party investors. Blackstone and its affiliates (including the Company) will forgo all non-economic rights (including voting rights) in such CMBS as long as the Blackstone-advised investment vehicles either own the properties collateralizing, loans underlying, or have an interest in a different part of the capital structure related to such CMBS. For the year ended December 31, 2017, the Company recorded interest income of $10.2 million and an unrealized gain of $1.9 million related to its investments in such CMBS. Such amounts were reported as a component of Income From Real Estate-Related Securities on the Company’s Consolidated Statements of Operations.

As described in Note 2, the Company classifies its investments in real estate-related securities as trading and records these investments at fair value in Real Estate-Related Securities on the Company’s Consolidated Balance Sheets. During the year ended December 31, 2017, the Company recorded an unrealized gain of $2.4 million as a component of Income From Real Estate-Related Securities in the Company’s Consolidated Statements of Operations. During the year ended December 31, 2017, one of the Company’s CMBS investments was fully repaid and two of the Company’s investments partially repaid. As such, the Company recorded a realized loss of $0.2 million as a component of Income From Real Estate-Related Securities on the Company’s Consolidated Statements of Operations. The Company did not sell any securities during the year ended December 31, 2017.