Get them exclusively at High Yield Landlord. If you have an ad-blocker enabled you may be blocked from proceeding. Like the BPP funds, BREIT doesn't buy fixer-uppers. Meanwhile, from the inception date to July 31, 2021, total returns (without initial sales charge fees) were between 10% 11% across all types of share classes. Cost basis and return based on previous market day close. With dividends reinvested, the benchmark SPDR S&P 500 ETF (ticker: SPY) lost 18.2% last . As of June 30, 2021, their total properties were 1,463. Blackstone of course wants you to invest in BREIT because they earn fees for managing it. 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. It still has a lot of dry powder after its latest deal, suggesting its shopping REIT shopping spree could continue. The continued surge in such requests has kept the pressure on Blackstone's stock price. Because of those returns, Blackstone has become a victim of its own success as some investors seek to cash in on their profitable BREIT shares to deploy that capital into other investments. Receive at least 75% of gross income from real estate, such as real property rents . Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. Per maggiori informazioni sulle modalit di utilizzo dei dati, consulta la nostra Informativa sulla privacy e lInformativa sui cookie. By. Proof in point: BREIT just had to limit withdrawals because too many investors are currently seeking to get out of it. Do your own research or seek the advice of a qualified professional. Blackstone is the 1000-pound gorilla in any real estate room. Rising interest rates weigh on real estate values because they make financing properties more expensive. 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. You are responsible for your own investment decisions. BREIT outsources third-party pricing service providers to determine the fair value for these debt investments. ACC was the last public REIT dedicated to the sector to be taken private, following Campus Crest Communities' privatization by Harrison Street in 2015 and EdR by Greystar in 2018. Their recent investments are, namely, in residential, industrial, net lease, hospitality (leisure market), self-storage, retail, and office. US private equity giant Blackstone Group has defied market jitters and pulled off a mega sale of an office tower above the Westfield mall in Sydney's CBD to Hong Kong-based Link REIT for $683 million. Real estate major DLF has no plans to launch public offer of REIT in the next one year to monetise its rent-yielding commercial properties, its CEO Ashok Tyagi said. Today, he is the author of "High Yield Landlord - the #1 ranked real estate service on Seeking Alpha. BREIT also has real estate debt investments through securities and loans backed by the U.S. market. Blackstone Group has been on an aggressive REIT buying spree in the last few years. Two sources familiar with the matter said turmoil in Asian markets, fueled by concerns about China's economic prospects and political stability, contributed to the redemptions. It leads to "growth at all costs", which hurts returns, and this is why such externally-managed REITs are disliked by investors. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. While this differential in performance between publicly traded and privately held real estate is interesting and good for Blackstone, it also signals opportunity for the average REIT investor. BREIT is an externally-managed REIT. BREITs common stocks are priced at their fair value in terms of NAV net asset value. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. These deals showcase its growingdominance in the commercial real estate sector. In terms of the location of the target market, BREITs investment strategy is focused on the U.S. market. Price as of February 28, 2023, 4:00 p.m. But we also believe these two REITs boast strong property portfolios with ample organic growth as well as external growth through portfolio expansion. Cap rates have expanded a bit, but so has the property NOI in most cases. Public REITs are down 25% and many are down closer to 50% even as real estate values remained more or less intact. Blackstone Mortgage Trust is not owned by hedge funds. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Note that this is an investment-grade rated company with a very strong track record and it is not in any distress. The mega-manager executed the biggest private real estate deal on record with its 21 billion recapitalization of its European logistics company Mileway; reached an agreement to purchase the Australian gaming operator Crown Resorts for nearly A$8.9 billion ($6. They claim that, unlike public REITs, BREIT is uncorrelated with the public stock market because it is a non-listed real estate investment vehicle. However, you should still take note that liquidating your assets will still depend on the discretion of BREIT. The Motley Fool owns and recommends American Campus Communities and The Blackstone Group Inc. From the past metric performance, BREIT has had a good run since its inception in 2017. Despite the pandemic, they acquired worth $10.5B of real estate properties in the multifamily, industrial, and net lease sectors in 2020. However, they do not trade shares in a public exchange with the likes of NYSE and NASDAQ. The Blackstone Group again advanced its push into the multifamily market with a sizable acquisition spanning in-demand Sun Belt sectors. New York, June 22, 2021 - Blackstone Real Estate Income Trust, Inc. ("BREIT") announced today that it has entered into a definitive agreement to acquire Home Partners of America ("HPA"), valuing the company at $6.0 billion. What's more, the portfolio is performing quite well organically as well. The stock has a fifty day moving average price of $22.70 and a 200 day moving average price of $24.69. Certain suitability requirements must be met to be a BREIT stockholder. Instead of trading at the going market rate, which can fluctuate with investor sentiment, non-traded REIT shares sell for the net asset value (NAV) of their underlying real estate. Their current real estate investments operate in 7 sectors: BREITs acquired assets are growing continuously. What Blackstone's REIT Acquisition Spree Is Telling Investors, Blackstone Is Becoming a Real Estate Powerhouse, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 3 Stocks That Could Join Apple, Microsoft, and Alphabet in the $1 Trillion Club, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, With billions of dollars in dry powder across its real estate private equity funds and cash continuing to pour into its funds. This was followed by the Class I shares, Class D shares, and then the Class T shares. Hence, we find Blackstone's President & Chief Operating Officer Jon Gray concluding that: The best opportunities today are clearly in the public markets on the screen and that's where we're spending a lot of time. US private equity giant Blackstone Group has defied market jitters and pulled off a mega sale of an office tower above the Westfield mall in Sydney's CBD to Hong Kong-based Link REIT for $683 . As of FY 2020, each common stock class received a gross distribution of $0.6354 per share. Blackstone's purchase of American Campus makes student housing a fully privately held asset class in the US. 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 . Blackstone Group (BX 1.37%) is back in the headlines again this week with another multi-billion-dollar purchase of a real estate investment trust (REIT). Blackstone is able to purchase giant holdings in a . Is this happening to you frequently? Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. The $71 billion Blackstone Real Estate Income Trust (BRET) saw investor withdrawals of nearly $9.9 billion last year. Just a month after, it grew to 1,508 properties. Blackstone Real Estate Income Trust, Inc. (B REIT) has agreed to acquire Home Partners of America (HPA) for $6 billion. However, they'll lose the exposure to the business park sector, which contributed 4% of Public Storage's annual funds from operations. The Motley Fool has a disclosure policy. The company reports its financial statements and regular updates through SEC filings for public reference. Image courtesy of Bluerock Residential Growth REIT. 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. That's one of several long-term growth drivers. BREIT has the option to repurchase all or maybe some of the shares you request to liquidate. I think that it is inferior and yet it is a lot more expensive. The company sees a massive untapped opportunity for high-net-worth investors since they have a low percentage of their portfolios currently allocated to alternatives. It has managed to deliver a 9% total return with low volatility even as the public REIT market (VNQ) dropped by nearly 30% on average: The manager, Blackstone, is of course very proud of this outperformance. 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. High Yield Landlord is managed by Leonberg Capital. In 2021, BREIT raised nearly $25 billion from investors. Though the dividend yield of ~3.2% may seem low, it is actually quite high compared to the yields of its closest peers in the Sunbelt multifamily space: With over 30% upside to fair value, it would not be surprising if Blackstone at least made an attempt to buy BSR. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. More investors are entrusting it with more of their capital, giving it the funds to acquire more real estate. July 16, 2021. An Investors Perspective Into Blackstone REIT (BREIT), An Investors Perspective Into Apple Hospitality REIT, Everything You Want to Know About Armour Residential REIT, Why you Should Look into Crown Castle REITs, An Investors Perspective Into Whitestone REITs. 22/06/2021. Those returns will eventually draw more investors to BREIT. I have no business relationship with any company whose stock is mentioned in this article. However, they'll lose the exposure to the business park sector, which contributed 4% of Public Storage's annual funds from operations. Global investment firm Blackstone-sponsored Nexus Select Trust has filed the draft paper with market regulator Sebi to launch India's first public issue of retail REIT to raise around US$ 500 million (about Rs 4,000 crore), sources said. But it limits repurchases to 2% of its NAV per month and 5% of its NAV in a calendar quarter. Though these are not the highest value properties in the industrial space, STAG has established a solid track record of strong performance from the acquisition and management of them. The average annual cost of a public internally-managed REIT is around 0.6%, and some REITs like Realty Income (O) have it as low as 0.4%. As of July 2021, BREIT has a total of 1,508 real estate properties in the . JLL's head of research for Australia, Andrew Ballantyne, said organisations had moved quickly to change working practices. The residential rental market is another. In a matter of three days last week, Blackstone agreed three transactions around the globe totaling roughly $38 billion of activity. 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. The general trend of NAV prices for all class shares was increasing until a sudden drop occurred in the first quarter of 2020 during the onset of the COVID-19 pandemic. Information regarding Blackstone and Blackstone Real Estate is included to provide information regarding the experience of our sponsor and its affiliates. DLF holds bulk of its rental assets (offices and . Class S and T shares dont include the upfront 3.5% sales charge at initial subscription yet. Associate Director at Atlantic Group. On Blackstone's third-quarter earnings call in October, Gray blamed REIT redemptions on market volatility, which he said had driven away individual investors from active equity and fixed income funds. This limits your ability to get in and out of the real estate market, increasing risks, and potentially also limiting your ability to act on new investment opportunities. Blackstone continues making major deals across the multifamily sector by planning to acquire Bluerock Residential Growth REIT in an all-cash . 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. That suggests it could make more headline-grabbing deals this year. Dati relativi al dispositivo e alla connessione a Internet, come l'indirizzo IP, Attivit di navigazione e di ricerca durante l'utilizzo dei siti web e delle app di Yahoo. Those sectors are benefiting from long-term tailwinds and inflation. . Blackstone Real Estate Income Trust (BREIT) is a SEC-registered, non-traded, hybrid, perpetual-life REIT since 2017. DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. Is now still a better time to invest in BREIT, or should you rather consider public REITs? The company sees a massive untapped opportunity for high-net-worth investors since they have a low percentage of their portfolios currently allocated to alternatives. We are the fastest-growing and best-rated stock-picking service on Seeking Alpha with 2,500+ members on board and a perfect 5/5 rating from 500+ reviews: You won't be charged a penny during the free trial, so you have nothing to lose and everything to gain. With more of their capital, giving it the funds to acquire Residential. Is a SEC-registered, non-traded, hybrid, perpetual-life REIT since 2017 quickly to change practices! 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