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Blackstone REIT December Redemption Requests Lowest Since September 2022

Blackstone REIT December Redemption Requests Lowest Since September 2022. Alternative investments, Blackstone, Blackstone REIT, investment, NAV, net asset value, real estate, real estate investment trust, Realty Income Corporation, redemptions, REIT, share, shareholders

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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