BREIT Completes Self-Storage Exit, Pours $3.3B Into Data Centers in Q2
Blackstone Real Estate Income Trust exited the self-storage business entirely in the second quarter, selling its remaining 79 self-storage properties for $852.3 million in net proceeds, according to the company’s second-quarter reporting. The sale was part of $2.1 billion in total property dispositions during the quarter, which also included 20 rental housing properties and 27 industrial properties, producing a combined net realized gain of $294 million.
The move completes a self-storage retreat that began in 2023, when BREIT sold its Simply Self Storage platform – 127 properties totaling nine million square feet – to Public Storage for $2.2 billion. BREIT had continued to hold a smaller set of self-storage assets outside that transaction; the second-quarter sale disposes of the remainder.
The proceeds fed a deepening bet on data centers. BREIT deployed $3.3 billion, at its share, into development through its QTS platform during the quarter, the company said, describing the developments as fully preleased, in substantially all cases to investment-grade tenants. Data centers now represent 27% of the portfolio by fair value, up from 23% in the first quarter, when BREIT deployed $2.4 billion into the sector following $5.8 billion in 2025, as AltsWire reported in May.
The pace of the buildout tracks what Blackstone president and chief operating officer Jon Gray and chief financial officer Michael Chae told analysts on the company’s July 23 earnings call, when they credited data centers as a driver of BREIT’s improved performance, as AltsWire reported at the time. That call put BREIT’s second-quarter capital raise at $1.2 billion; the fund’s 10-Q instead reports $1.1 billion raised from the sale of shares and BREIT OP units during the same period.
BREIT repurchased $0.9 billion of shares and units from investors during the second quarter. For the six months ended June 30, the fund repurchased 148.1 million shares of common stock and one million BREIT OP units for a total of $2.1 billion, satisfying all repurchase requests submitted during the period. The result extends a recovery in investor sentiment AltsWire has tracked over the past several months, including the fund’s best net flows in nearly four years reported alongside the July earnings call.
Class I shares carried a net asset value of $14.5256 per share as of June 30, with an average annualized distribution rate of 4.6% for the quarter, unchanged from recent periods.
BREIT’s portfolio consisted of 4,530 properties as of June 30, concentrated in rental housing (42% by fair value), data centers (27%) and industrial (20%), with the largest regional concentrations in the South (35%) and West (28%).
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