Equity and Redeemable Non-controlling Interest

3 Months Ended

Mar. 31, 2021

Equity and Redeemable Non-controlling Interest

13. Equity and Redeemable Non-controlling Interest

Authorized Capital

As of March 31, 2021, 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 table details the movement in the Company’s outstanding shares of common stock (in thousands):

	Three Months Ended March 31, 2021
	Class S			Class I			Class T			Class D			Total
December 31, 2020		702,853			927,080			45,943			124,141			1,800,017
Common stock issued		81,771			145,218			1,383			22,621			250,993
Distribution reinvestment		5,696			5,835			337			1,001			12,869
Common stock repurchased		(6,799	)		(35,388	)		(548	)		(809	)		(43,544	)
Independent directors' restricted stock grant⁽¹⁾		—			5		—			—				5
March 31, 2021		783,521			1,042,750			47,115			146,954			2,020,340

⁽¹⁾

The independent directors’ restricted stock grant represents $0.1 million of the annual compensation paid to a new independent director which has been prorated for the period from January 2021 through August 2021. The grant is amortized over the service period and the shares vest in August 2021.

Share and Unit Repurchases

For the three months ended March 31, 2021, the Company repurchased 43.5 million shares of common stock and 9.8 million BREIT OP units representing a total of $508.3 million and $113.2 million, respectively. The Company had no unfulfilled repurchase requests during the three months ended March 31, 2021.

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 table details the aggregate distributions declared for each applicable class of common stock for the three months ended March 31, 2021:

	Three Months Ended March 31, 2021
	Class S			Class I		Class T			Class D
Aggregate gross distributions declared per share of common stock	$	0.1600		$	0.1600	$	0.1600		$	0.1600
Stockholder servicing fee per share of common stock		(0.0247	)		—		(0.0244	)		(0.0071	)
Net distributions declared per share of common stock	$	0.1353		$	0.1600	$	0.1356		$	0.1529

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 details the redeemable non-controlling interest activity related to the Special Limited Partner for the three months ended March 31, 2021 and 2020 ($ in thousands):

	March 31, 2021			March 31, 2020
Balance at the beginning of the year	$	274		$	272
Settlement of performance participation allocation		192,648			141,396
Repurchases		(111,949	)		(83,625	)
Conversion to Class I and Class B units		(68,453	)		(48,543	)
Conversion to Class I shares		(12,246	)		(9,228	)
GAAP income allocation		—			(20	)
Distributions		(4	)		(2	)
Fair value allocation		14			—
Ending balance	$	284		$	250

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 March 31, 2021 and December 31, 2020, $31.9 million and $29.8 million, respectively, 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 $2.8 million and $0.5 million during the three months ended March 31, 2021 and March 31, 2020, respectively, between Additional Paid-in Capital and Redeemable Non-controlling Interest.