Blackstone REIT December Redemption Requests Lowest Since September 2022

Blackstone Real Estate Income Trust Inc., a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), announced that they did not reach the threshold limit for redemptions in December 2023, after twelve consecutive months of prorations. This is the first month repurchase requests fell below the 2% of NAV monthly limit since September 2022 (prior to when proration began).

In a letter to stockholders, the company reported that it has returned $14.3 billion of liquidity to investors since Nov. 30, 2022, when redemption proration began, while “maintaining resilient performance.” BREIT says a shareholder who began submitting repurchase requests just two months ago has received “nearly all” of their money back.

In December 2023, BREIT received $1.1 billion in requests under the repurchase plan. This represents a 41% decline from the previous month, November 2023. In accordance with their repurchase plan, BREIT is fulfilling approximately $569 million, which is equal to 1% of NAV and represents 53% of the shares submitted for repurchase.

“We are pleased that BREIT has delivered an 11% annualized net return since inception seven years ago (January 1, 2017), nearly 3x publicly traded REITs, and has outperformed its non-traded REIT peers by more than 600 basis points over the last year,” reported BREIT.

BREIT’s portfolio is more than 50% concentrated in sectors which are experiencing “high single digit or greater market rent growth,” and 70% concentrated in Sunbelt markets where they say population, job and wage growth are higher than the rest of the country. The company says this has resulted in 6%+ estimated cash flow growth year to date across BREIT’s portfolio.

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