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Thursday, March 16, 2023

Blackstone’s BREIT Information Its Greatest Advance in 6 Months

(Bloomberg)—Blackstone Actual Property Revenue Belief Inc., the Blackstone Inc. fund for prosperous particular person traders, reported its greatest month-to-month whole return in six months as February’s dividend funds and rising rents offset a decline in property valuations.

BREIT’s lowest-fee share class had a complete return of 0.7% for the month, bringing trailing 12-month returns to five.7%, in response to a report posted Tuesday. The share class posted an 8.4% achieve in all of 2022 and a 30.2% improve in 2021.

Development slowed final yr as rising rates of interest undercut actual property values and the tide of investor inflows reversed right into a torrent of redemption requests. BREIT restricted withdrawals for the 4 months via February as redemption demand exceeded month-to-month and quarterly limits.

Along with increased earnings from hire and regular dividends, BREIT’s February returns benefited from hedging positions that added worth as rates of interest rose. Business actual property costs fell 1.4% throughout all asset lessons in February and are down 15% within the trailing 12 months, in response to Inexperienced Avenue.

After its launch in 2017, BREIT grew voraciously, buying nearly 300,000 housing models, 453 million sq. ft (4.2 million sq. meters) of business house, inns, knowledge facilities, buying facilities and different actual property. The fund nonetheless has about $14 billion in liquidity for potential new acquisitions.

“The place you make investments issues and the overwhelming majority of BREIT’s portfolio is in rental housing and logistics within the Sunbelt,” Blackstone mentioned in an announcement.

BREIT’s web asset worth decreased to $70.5 billion after traders withdrew $1.4 billion final month. The web asset worth consists of an preliminary $4 billion dedicated by the College of California in January however not a $500 million follow-up funding from the college.

© 2023 Bloomberg L.P.

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