Blackstone REIT Limits Investor Redemptions in March

The $70 billion non-traded real estate investment trust sponsored by private equity giant Blackstone Group (NYSE:BX), Blackstone Real Estate Income Trust, announced the company received repurchase requests of $4.5 billion in March and fulfilled approximately $666 million, just 15% of the shares submitted for repurchase.

The redemptions for March 2023 were 16% lower than the peak in January 2023 in which BREIT fulfilled repurchase requests totaling just $1.3 billion of the estimated $5 billion in total that investors sought to redeem.

This update comes nearly a month after the news that BREIT investor repurchase requests, once again, exceeded 2% of its net asset value in February, the maximum monthly amount permitted under terms of the company’s share repurchase plan. The redemption requests in March were 15% higher than the $3.9 billion made in February, of which $1.4 billion requests were fulfilled.

The company previously limited redemption requests after, for the first time in its six-year history, failing to fulfill all investor repurchase requests made in November 2022.

Yesterday morning, Blackstone’s stock also fell 4.2% to $84.12 per share.

In January, the REIT announced a $4 billion investment from the University of California endowment, which was later increased by an additional $500 million investment.

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