Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), updated the monthly net asset values for its Class S, Class I, Class D and Class T shares of common stock, as of October 31, 2021.
Class S shares have an NAV per share of approximately $13.91, compared to the previous month’s valuation of $13.51 per share. Class S are purchased through brokerage and transaction-based accounts.
Class I shares have a net asset value per share of nearly $13.90, compared to $13.50 per share the previous month. Class I shares are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members.
Class T shares have a per share NAV of nearly $13.71, compared to $13.32 the previous month. Class T shares are available through brokerage and transaction-based accounts.
Class D shares have a net asset value per share of $13.65 each, compared to $13.26 the previous month. Class D shares are sold through fee-based programs known as wrap accounts, and through participating broker-dealers, certain registered investment advisers, and through bank trust departments or other organizations.
Blackstone REIT indicated that the NAV increase was due to “broad-based increases” in the value of assets, particularly its residential, industrial and net lease properties.
“We have oriented BREIT’s portfolio to markets and sectors where we see opportunities for outsized growth,” the company said in a filing with the Securities and Exchange Commission. “Today, our portfolio is nearly 80 percent concentrated in industrial and residential, two of the best performing sectors where growth is outpacing inflation.”
“These sectors typically have shorter duration leases which provide the opportunity to regularly adjust rents to market, resulting in higher cash flows,” the company added. “In addition, increases in the cost to develop make new supply more costly and less financially feasible, which is generally supportive of higher occupancies and stronger pricing power for existing assets.”
Blackstone REIT said that its “top residential markets are experiencing double digit multifamily rent growth.” Residential makes up 47 percent of the REIT’s real estate portfolio.
The REIT’s industrial assets, which comprise 32 percent of its property portfolio, are executing leases at 13 percent higher rents in the third quarter of 2021 driven by continued e-commerce growth and disrupted supply chains, the company said.
In addition, Blackstone REIT estimates that 90 percent to 100 percent of distributions for the year ended December 31, 2021 will be characterized as return of capital for federal income tax purposes.
Investments in real estate increased from $55.8 billion in September to $61.1 billion in October, while investments in real estate debt increased from $6.9 billion to $7.7 billion. Investments in unconsolidated entities increased from $4.5 billion in September to $5 billion in October.
Cash and cash equivalents decreased from $1.6 billion to $830.2 million, restricted cash decreased from nearly $2.1 billion to $1.9 billion, and other assets increased from nearly $4.1 billion to roughly $4.6 billion.
Mortgage notes, term loans and revolving credit facilities increased from ($25.1 billion) in September to ($26.8 billion) in October. Secured financings on investments in real estate debt decreased from ($2.8 billion) to nearly ($3.2 billion) month-over-month.
Subscriptions received in advance decreased from ($1.7 billion) in September to ($1.6 billion) in October, and other liabilities increased from ($1.3 billion) to ($1.9 billion). The company had close to 3.3 billion shares outstanding as of October 31, 2021, compared to 3.1 billion the previous month.
Blackstone Real Estate Income Trust’s initial offering launched in August 2016 and has raised $38.2 billion in three public offerings as of September 2021. The REIT has raised $12.7 billion in the current offering, as of mid-November. As of October 31, 2021, the REIT’s aggregate NAV was $45.3 billion.