Income Tax Information NorthStar Real Estate Capital Income

NORTHSTAR REAL ESTATE CAPITAL INCOME MASTER FUND NOTES TO FINANCIAL STATEMENTS CONTINUED constitute a return of capital. The Distribution Support Agreement expires at the earlier of: a two years from the date on which the Trust, or another investment company registered under the 1940 Act which has a principal investment strategy of investing substantially all of its assets in the Master Fund, first commences an offering; or b the date upon which neither the Advisor nor its affiliate is serving as the Master Fund’s Advisor. For the period from May 6, 2016 commencement of operations through December 31, 2016, there was no distribution support provided by NorthStar Realty. On February 23, 2017, the Distribution Support Agreement was amended to replace NorthStar Realty with an affiliate of Colony NorthStar. The Distribution Support Agreement was also amended such that during any month when the Distribution Support Agreement is effective, if the cash distributions exceed the net investment income for such month “Distribution Shortfall”, an affiliate of Colony NorthStar will purchase shares required in order to cover the Distribution Shortfall up to an amount equal to a 6.0 cumulative, non-compounded annual return on the Fund’s shareholders’ invested capital prorated for such month. Notwithstanding an affiliate of Colony NorthStar’s obligations pursuant to the Distribution Support Agreement, the Master Fund will not be required to pay distributions to the Master Fund shareholders, including the Trusts. Capital Contribution by NorthStar Realty Finance Limited Partnership “NRFLP” Prior to commencement of operations, NRFLP, an affiliate of NorthStar Realty, contributed 2,000,100 to purchase 222,233 common shares of the Master Fund at 9.00 per share.

5. Income Tax Information

The components of the deferred tax asset as of December 31, 2016, for the Master Fund as a C-corporation, consist of the following: December 31, 2016 Deferred Tax Asset Net loss carryforwards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,459 Total Deferred Tax Asset . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,459 Less: Valuation Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138,459 Net Deferred Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — At December 31, 2016, the Master Fund had total net operating and capital loss carry forwards of approximately 0.3 million for federal income tax purposes available to offset future taxable income. The loss carry forwards can be carried forward 20 years and will expire in 2036. A reconciliation of the federal tax rate to the Master Fund’s effective income tax rate is as follows: December 31, 2016 Tax at Federal Statutory Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0 State and Local Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.0 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.0 Valuation Allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.0 Provision for Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.0 At December 31, 2016, the cost basis of investments for Federal income tax purposes was substantially the same as the basis per U.S. GAAP. At December 31, 2016, gross unrealized appreciation and depreciation on investments for Federal income tax purposes were 0 and 100, respectively. B-29 NORTHSTAR REAL ESTATE CAPITAL INCOME MASTER FUND NOTES TO FINANCIAL STATEMENTS CONTINUED

6. Investment in NS Capital Income Master Fund REIT, Inc. the “REIT Subsidiary”