Equity and Redeemable Non-controlling Interest

6 Months Ended

Jun. 30, 2020

Equity and Redeemable Non-controlling Interest

12. Equity and Redeemable Non-controlling Interest

Authorized Capital

As of June 30, 2020, the Company had the authority to issue 10,100,000,000 shares, consisting of the following:

Classification	Number of Shares (in thousands)		Par Value
Preferred Stock		100,000	$	0.01
Class S Shares		3,000,000	$	0.01
Class I Shares		6,000,000	$	0.01
Class T Shares		500,000	$	0.01
Class D Shares		500,000	$	0.01
Total		10,100,000

Common Stock

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

	Three Months Ended June 30, 2020
	Class S			Class I			Class T			Class D			Total
March 31, 2020		611,149			783,816			43,898			96,382			1,535,245
Common stock issued		25,770			47,450			1,177			7,329			81,726
Distribution reinvestment		5,433			5,132			352			844			11,761
Common stock repurchased		(10,144	)		(15,585	)		(1,470	)		(1,393	)		(28,592	)
June 30, 2020		632,208			820,813			43,957			103,162			1,600,140

	Six Months Ended June 30, 2020
	Class S			Class I			Class T			Class D			Total
December 31, 2019		530,813			474,279			39,767			84,657			1,129,516
Common stock issued		124,298			372,282			5,988			21,438			524,006
Distribution reinvestment		9,931			8,820			649			1,531			20,931
Common stock repurchased		(32,834	)		(34,568	)		(2,447	)		(4,464	)		(74,313	)
June 30, 2020		632,208			820,813			43,957			103,162			1,600,140

Share and Unit Repurchases

For the three months ended June 30, 2020, the Company repurchased 28,591,683 shares of common stock and 136,023 BREIT OP units representing a total of $299.1 million. For the six months ended June 30, 2020, the Company repurchased 74,312,521 shares of common stock and 7,470,443 BREIT OP units representing a total of $898.9 million. The Company had no unfulfilled repurchase requests during the three or six months ended June 30, 2020.

Distributions

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 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 tables detail the aggregate distributions declared for each applicable class of common stock for the three and six months ended June 30, 2020:

	Three Months Ended June 30, 2020
	Class S			Class I		Class T			Class D
Aggregate gross distributions declared per share of common stock	$	0.1577		$	0.1577	$	0.1577		$	0.1577
Stockholder servicing fee per share of common stock		(0.0224	)		—		(0.0221	)		(0.0065	)
Net distributions declared per share of common stock	$	0.1353		$	0.1577	$	0.1356		$	0.1512

	Six Months Ended June 30, 2020
	Class S			Class I		Class T			Class D
Aggregate gross distributions declared per share of common stock	$	0.3169		$	0.3169	$	0.3169		$	0.3169
Stockholder servicing fee per share of common stock		(0.0463	)		—		(0.0457	)		(0.0135	)
Net distributions declared per share of common stock	$	0.2706		$	0.3169	$	0.2712		$	0.3034

Redeemable Non-controlling Interest

In connection with its performance participation interest, the Special Limited Partner holds Class I units in BREIT OP. See Note 9 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 Condensed Consolidated Balance Sheets.

The following table summarizes the redeemable non-controlling interest activity related to the Special Limited Partner for the six months ended June 30, 2020 ($ in thousands):

	Amount
December 31, 2019	$	272
Settlement of 2019 performance participation allocation		141,396
Repurchases		(83,625	)
Conversion to Class I and Class B units		(48,543	)
Conversion to Class I shares		(9,228	)
GAAP income allocation		(15	)
Distributions		(6	)
Fair value allocation		4
June 30, 2020	$	255

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 June 30, 2020, $21.4 million related to such third party joint ventures was included in Redeemable Non-controlling Interests on the Company’s Condensed 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. Accordingly, the Company recorded an allocation adjustment of $0.2 million and $(0.3) million during the three and six months ended June 30, 2020, respectively, between Additional Paid-in Capital and Redeemable Non-controlling Interest.