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Blackstone REIT Redemption Requests Decline for Fifth Straight Month

Blackstone REIT Redemption Requests Decline for Fifth Straight Month. Alternative investments, Blackstone, Blackstone REIT, investment, NAV, net asset value, real estate, real estate investment trust, Realty Income Corporation, redemptions, REIT, share, shareholders

Blackstone Real Estate Income Trust Inc., a non-traded real estate investment trust sponsored by Blackstone Inc. (NYSE: BX), received redemption requests totaling approximately $2.1 billion in September, which BREIT says was the lowest month of repurchase requests since October 2022 (prior to when the company began to prorate redemptions), 60% lower than the peak in January 2023, and the fifth consecutive month of declining repurchase requests.

In accordance with their repurchase plan, BREIT is fulfilling approximately $625 million, which is equal to 1% of NAV and represents 29% of the shares submitted for repurchase. The company says repurchases were fulfilled at the August 31, 2023, NAV per share for each applicable share class.

BREIT has paid out $11.3 billion to redeeming shareholders since November 30, 2022. The company says a shareholder who began submitting repurchase requests in November has received approximately 97% of their money back and that “the semi-liquid structure is working as intended.”

As previously reported by The DI Wire, Blackstone REIT, for the first time in its six-year history, began to limit fulfillment of redemption requests in November, after large amounts of repurchase requests from investors exceeded the 5% quarterly limit of the company’s net asset value.

The company recently announced that Realty Income has signed a definitive agreement to invest approximately $950 million to acquire common and preferred equity interests from BREIT in a new joint venture that owns a 95% interest in the real estate assets of The Bellagio Las Vegas. The transaction values the asset at $5.1 billion.

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