Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), updated its monthly net asset values for its Class S, Class I, Class D and Class T shares of common stock, as of December 31, 2020.
Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $11.59. Last month, Class S shares had a monthly net asset value of approximately $11.48 each.
Class I shares, which have a net asset value per share of nearly $11.56, are sold to endowments, foundations, pension funds and other institutional investors, as well to REIT executives, directors, and their immediate family members. Last month, Class I shares had a net asset value per share of nearly $11.44.
Class T shares have a per share NAV of nearly $11.39 and are available through brokerage and transaction-based accounts. Last month, Class T shares had a per share NAV of $11.27.
Class D shares have a net asset value per share of nearly $11.42 each and 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. Last month, Class D shares had a NAV per share of approximately $11.31.
Blackstone REIT indicated that the NAV per share increase was driven by increases in the value of its industrial assets reflecting the continued acceleration of e-commerce demand.
“We continue to see increasing levels of transaction activity and maintain a robust pipeline of identified transactions ($1.4 billion as of December 31, 2020) consistent with those in our existing portfolio…,” the REIT stated in a filing with the Securities and Exchange Commission. “We continue to maintain a strong financial position with substantial liquidity ($4.3 billion as of January 4, 2021), modest leverage (47 percent loan-to-value as of December 31, 2020) and accelerated fundraising in recent months. In addition, we currently estimate that 97 percent to 100 percent of distributions for the year ended December 31, 2020 will be characterized as return of capital for federal income tax purposes.”
Rent collections for multifamily, industrial, net lease, retail, and office properties were 2.3 percent below a typical month, the company stated.
In other Blackstone REIT news, the board increased the number of directors by two, for a total of nine directors, and added Susan Carras and Brian Kim to the newly created seats. Carras serves as senior managing director of capital markets at Jones Lang LaSalle, and Kim is a senior managing director in the Real Estate Group of The Blackstone Group Inc.
“The board determined that Ms. Carras qualifies as an independent director in accordance with the criteria in the company’s charter and bylaws, the applicable rules of the Securities and Exchange Commission and the listing standards of the New York Stock Exchange, including with respect to committee service, and appointed her to serve on each of the audit committee, affiliate transaction committee and nominating and corporate governance committee of the board,” the REIT said in an SEC filing.
Blackstone Real Estate Income Trust originally registered $5 billion in shares and accepted gross offering proceeds of $4.9 billion from January 1, 2017 to January 1, 2019. The company later registered a $12 billion follow-on offering, and as of mid-January 2021, had received $10.2 billion in investor proceeds.
As of December 31, 2020, the REIT owned a property portfolio valued at roughly $37.7 billion and had positions in real estate-related securities and loans totaling $4.6 billion. The company invests in multifamily, industrial, hotel, and retail properties, and real estate-related securities and loans.