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 May 31, 2020.
Class S shares, which are purchased through brokerage and transaction-based accounts, have a net asset value per share of approximately $10.58. Last month, Class S shares had a monthly net asset value of approximately $10.48 each.
Class I shares, which have a net asset value per share of approximately $10.55, 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 $10.45.
Class D shares have a net asset value per share of approximately $10.44 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 $10.35.
Class T shares have a per share NAV of approximately $10.40 and are available through brokerage and transaction-based accounts. Last month, Class T shares had a per share NAV of $10.30.
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.
In a filing with the Securities and Exchange Commission, Blackstone REIT said that the NAV per share increase was driven by mark-to-market increases in its real estate debt portfolio as pricing across securities, including CMBS, continued to recover from significant declines in March.
The company also pointed to modest increases in the valuations of its industrial, multifamily and hospitality properties, reflecting continued demand for industrial assets driven by e-commerce, rent collections above expected levels, and hotel re-openings ahead of anticipated timing, respectively.
Rent collections for multifamily, industrial, net lease, retail, and office properties improved in May and were 2 percent lower compared to a typical month, the company said, versus 2.5 percent lower compared to a typical month as recorded during the same period in April.
“BREIT continues to maintain substantial liquidity ($3.3 billion as of June 15, 2020) and modest leverage (49 percent loan-to-value as of May 31, 2020),” the company said in the 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 May 20, 2020, had received $7.7 billion in investor proceeds.
As of April 30, 2020, the REIT owned a property portfolio valued at $31.8 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.