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 April 30, 2020.
In a filing with the Securities and Exchange Commission, Blackstone REIT explained that the global outbreak of COVID-19 has adversely impacted global commercial activity and contributed to significant volatility in financial markets.
Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $10.48. Last month, Class S shares had a monthly net asset value of approximately $10.46 each.
Class I shares, which have a net asset value per share of approximately $10.45, 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 $10.44.
Class D shares have a net asset value per share of approximately $10.35 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 $10.31.
Class T shares have a per share NAV of approximately $10.30 and are available through brokerage and transaction-based accounts. Last month, Class T shares had a per share NAV of $10.27.
The pre-pandemic NAVs per share for February 2020 were $11.44 per Class S share, $11.42 per Class I share, $11.27 per Class D share, and $11.23 per Class T share.
Blackstone said that the NAV per share movement was driven by mark-to-market increases in its real estate debt portfolio as pricing across securities, including CMBS, recovered modestly from significant declines in the prior month.
“This increase was partially offset by incremental reductions in the valuations of our hospitality, retail and, to a lesser extent, student housing properties, which represent 6 percent, 2 percent and 3 percent of our real estate portfolio, respectively,” said Blackstone REIT. “These moderate reductions reflected the potential of a greater prolonged recovery in these sectors due to reduced travel, decreased foot traffic resulting from store closures, increased reliance on e-commerce due to COVID-19 and potential delays in the school year.”
The company added, “Despite the challenges posed by COVID-19, our April rent collections for our multifamily, industrial, net lease, retail, and office properties were only 2.5 percent lower compared to a typical month.”
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 May 20, 2020, had received $7.5 billion in investor proceeds.
As of April 30, 2020, the REIT owned a property portfolio valued at $31.5 billion and had positions in real estate-related securities and loans totaling nearly $4.4 billion. The company currently invests in multifamily, industrial, hotel, and retail properties, and real estate-related securities and loans.