The figure above shows the historical NAV price of the 4 types of class shares. TORONTO - Blackstone Real Estate Income Trust Inc. has signed a deal to buy WPT Industrial Real Estate Investment Trust in an all-cash deal valued at US$3.1 billion . Image courtesy of Bluerock Residential Growth REIT. Instead, the sell-off in its stock stemming from BREIT looks like a great buying opportunity for long-term investors to add to their position. Many non-traded REITs suspended their repurchase programs during the early days of the pandemic. But what about today? BREIT is a SEC-registered REIT since 2017. Instead, it continues to deliver differentiated performance. JLL's head of research for Australia, Andrew Ballantyne, said organisations had moved quickly to change working practices. Please try again later. Verition Fund Management LLC raised its position in Blackstone Inc. ( NYSE:BX - Get Rating) by 33.2% during the third quarter, according to the company in its most recent disclosure with the SEC. . The REIT also represented a bid to win over high net-worth investors clamoring for private market products, which they believe perform better than those that are publicly traded. Bellagio (NV), MGM Grand (NV), & Mandalay Bay (NV). PS Business Parks currently owns 97 business parks with 28.1 million square feet of commercial space leased to about 5,100 tenants. Blackstone Inc (BX.N) limited withdrawals from its $69 billion unlisted real estate income trust (REIT) on Thursday after a surge in redemption requests, an unprecedented blow to a franchise that helped it turn into an asset management behemoth. As of FY 2020, each common stock class received a gross distribution of $0.6354 per share. Before that, it struck agreements to acquire three apartment REITs for a combined $13.1 billion, an industrial REIT for $3.1 billion, and a data center REIT for $10 billion. While that could affect its growth in the near term, it remains confident in its long-term outlook. Tombol ini menampilkan jenis pencarian yang dipilih saat ini. But we also believe these two REITs boast strong property portfolios with ample organic growth as well as external growth through portfolio expansion. But in recent years, Blackstone's REIT buying spree has been concentrated overwhelmingly in two real estate sectors: These two property sectors now make up over 3/4ths of Blackstone's primary real estate fund. Blackstone CEO Steve Schwarzman noted on the company's recent, that "BREIT has delivered 12.5% net returns annually since inception six years ago for its largest share class, earning over three times the public REIT index. Investment advisors assess the shares and report them in terms of fair value, like how mutual funds work. The REIT turmoil is a setback for two of Blackstone's strategies that helped it become the world's biggest alternative asset manager with $951 billion in assets: real estate investing and attracting high net-worth individuals. It gets paid a 1.25% of the NAV each year as well as 12.5% of the annual total return subject to a 5% hurdle. Do your own research or seek the advice of a qualified professional. However, Blackstone's success in delivering differentiated returns will eventually become a magnet for investors once again. Last week, it reached a $12.8 billion deal to acquire student housing-focusedresidential REITAmerican Campus Communities. Associate Director at Atlantic Group. BREIT has a redemption plan, but as we highlighted in a recent article, this redemption plan can be quite restrictive and Blackstone recently limited withdrawals because too many investors sought to get at out at once. He has authored award-winning academic papers on REIT investing, been featured on numerous financial media outlets, has over 50,000 followers on SeekingAlpha, and built relationships with many top REIT executives. That was . Does the Stock Market Have You Down? Do your own research or seek the advice of a qualified professional. Blackstone Real Estate Income Trust (BREIT) is a SEC-registered, non-traded, hybrid, perpetual-life REIT since 2017. Blackstone is the 1000-pound gorilla in any real estate room. Join us for a 2-week free trial and get access to all my highest conviction investment ideas. I have no business relationship with any company whose stock is mentioned in this article. Per maggiori informazioni sulle modalit di utilizzo dei dati, consulta la nostra Informativa sulla privacy e lInformativa sui cookie. Is It a Buy Right Now? Please be aware of the risks associated with these stocks. Barclays analysts downgraded their rating of Blackstone's stock to "equal weight" from "overweight" and cut their price target to $90 from $98 on Friday. Blackstone's public non-listed REIT, BREIT, has been one of the best-performing REITs of this year.It has managed to deliver a 9% total return with low volatility even as the public . The $71 billion Blackstone Real Estate Income Trust (BRET) saw investor withdrawals of nearly $9.9 billion last year. Overall, BREIT is one of the leading players in the NAV REIT market industry. This is a much better management structure because the management is hired as employees of the REIT. By Milana Vinn. This kind of discount would imply either that BSR's property portfolio is sub-par, that its management is unskilled or conflicted, or that its balance sheet is weak, none of which are the case. That, for us at High Yield Landlord, is not enough on its own. Mortgage REITs . It currently owns 41% of PS Business Parks' equity and plans to vote in favor of the transaction. Public REITs are liquid and naturally, this will result in some volatility, but at least, you are not lying to yourself, thinking that something isn't volatile just because it isn't traded. This button displays the currently selected search type. However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. All of these are made possible through sponsorship from the Real Estate Group of The Blackstone Group, Inc. with decades of real estate experience. If we were just investing in BREIT, we would miss these opportunities to gain geographic diversification. Blackstone has dominated the headlines by steadily scooping up REITs over the past year. Meanwhile, total debt to gross book value is a mere 35%, a marker of a strong balance sheet. Total returns could be higher if you account for the accumulated share distributions throughout your investment years. The distribution of these capital shares is specified below. Since its inception in 2017, BREIT has consistently issued monthly distributions to its stockholders. It is heavily invested in rapidly growing sunbelt markets. ("Net asset value" is akin to an adjusted book value for REITs using estimated market values for their real estate. These deals showcase its growing, dominance in the commercial real estate sector, However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. Blackstone is taking another REIT private. To give you an example, at High Yield Landlord, we hold an international Portfolio with REITs from 6 different countries. Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. PS Business Parks owns a 27 million square foot portfolio of industrial, business park, traditional office, and multifamily properties located primarily in California, Miami, Texas, and . LONDON, Dec 2 (Reuters) - While there has been little wider fallout from this week's surge in redemption requests at an unlisted Blackstone real estate income trust (REIT), it is being read by some as a warning sign. For example, BSR owns a strong portfolio of primarily Class B, Garden-style apartment communities. Source: BREIT Prospectus (as of June 30, 2021). Class S shares were the first issued common stock of BREIT in 2017 at $10. You are responsible for your own investment decisions. There are literally no signs of a slowdown yet for STAG's industrial real estate, and yet the market has punished STAG with a ~35% selloff this year. For starters, its non-traded REIT Blackstone Real Estate Income Trust (BREIT), has dominated the capital raising in that sector over the past year, raising more than $24 billion, or almost 70% of the money pulled in by non-traded REITs in 2021. Today, he is the author of "High Yield Landlord - the #1 ranked real estate service on Seeking Alpha. An Investors Perspective Into Blackstone REIT (BREIT), An Investors Perspective Into Apple Hospitality REIT, Everything You Want to Know About Armour Residential REIT, Why you Should Look into Crown Castle REITs, An Investors Perspective Into Whitestone REITs. Blackstone shares ended down 7.1% on the news on Thursday. Class S and T shares dont include the upfront 3.5% sales charge at initial subscription yet. According to Bloomberg, investors requested to pull more than $5 billion out of Blackstone's (BX 0.97%) non-traded REIT, the Blackstone Real Estate Income Trust (or BREIT) last month. Asset management giant Blackstone (BX) boasts a portfolio of assets under management reaching nearly $1 trillion, made up largely of real estate. Cliccando su Accetta tutto accetti che Yahoo e i suoi partner possano trattare i tuoi dati personali e utilizzare tecnologie come i cookie per mostrarti annunci e contenuti personalizzati, per la misurazione degli annunci e dei contenuti, per l'analisi del pubblico e per lo sviluppo dei prodotti. Blackstone Inc on Monday agreed to buy real estate investment trust (REIT) PS Business Parks for $7.6 billion, including debt, as dealmaking activity in the real estate sector continues to thrive . We have over 500 five-star reviews from happy members who are already profiting from our real estate strategies. With the help of BX REIT Advisors LLC, their investment strategy is to invest in stabilized and diverse real estate portfolios to provide income to their investors. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. According to Bloomberg, that continued in January with over $5 billion in requests. Blackstone limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits amid investor concerns it was slow to adjust valuations as . See here for a complete list of exchanges and delays. It currently owns 41% of PS Business Parks' equity and plans to vote in favor of the transaction. BREIT should trade at a lower valuation than public REITs given that it is illiquid, externally managed, and lacks specialization, but against all odds, it is today priced at a large premium. Though Blackstone sometimes acquires individual real estate properties, such as The Bellagio in Las Vegas, it more often seeks opportunities to scoop up whole portfolios that will move the needle. "People are taking profits at the value Blackstone says their REIT shares are at," said Snyder. Please. That left it with $36.3 billion of dry powder. July 16, 2021. "The impact on Blackstone depends on whether the REIT is able to stabilize its net asset value over time, or is forced to enter an extended run-off scenario, with significant asset sales and ongoing redemption backlog too early to tell, in our view," BMO Capital Markets analysts wrote in a note. It results in significant economies of scale and better aligns interests with shareholders because they earn salaries based on their performance and not just the mere size of the company. 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