Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), updated the monthly net asset values for its Class S, Class I, Class D and Class T shares of common stock, as of June 30, 2022.
Class S shares had an NAV per share of $14.98, unchanged from the previous month. The total return for Class S shares in June 2022 was 0.3 percent (not annualized).
Class I shares had an NAV per share of $14.98, unchanged from the previous month. The total return for Class I shares was 0.4 percent.
Class T shares had an NAV per share of $14.76, unchanged from the previous month. The total return for Class T shares was 0.3 percent.
Class D shares had an NAV per share of $14.67, unchanged from the previous month. The total return was 0.4 percent.
*All dollar amounts are rounded to the nearest cent.
“Strong real estate fundamentals in the rental housing and industrial sectors are currently driving record rent growth and low vacancy, despite continued market volatility. Importantly, unlike prior cycles, supply continues to be muted in these sectors and leverage remains in check,” the company said in a filing with the Securities and Exchange Commission, noting that 77 percent of its portfolio is concentrated in rental housing and industrial.
In addition, Blackstone REIT reported that same property net operating income “remains strong,” with year-to-date growth estimated to be 16 percent. “We believe this strong cash flow growth may help offset potential pressure on multiples (cap rates) due to rising interest rates, particularly as [the REIT’s] balance sheet is 82 percent fixed rate in-place financing.”
Investments in real estate increased from $97.9 billion in May to $104.4 billion in June, while investments in real estate debt decreased from $11.1 billion to $10.7 billion. Investments in unconsolidated entities increased slightly from $9.7 billion in May to $9.8 billion in June.
Cash and cash equivalents decreased from $2.9 billion to $2.3 billion, restricted cash decreased from $2.5 billion to $2.1 billion, and other assets remained flat at $4.3 billion.
Mortgage notes, term loans and revolving credit facilities increased from ($47.7 billion) in May to ($52.2 billion) in June. Secured financings on investments in real estate debt increased from ($4.8 billion) to ($5.4 billion).
Subscriptions received in advance decreased from ($1.5 billion) to ($1.0 billion), and other liabilities decreased from ($4 billion) to ($3.8 billion). The company had nearly 4.6 billion shares outstanding as of June 30, 2022, compared to nearly 4.5 billion the previous month.
Blackstone Real Estate Income Trust’s initial offering launched in August 2016 and has raised $59 billion in three public offerings as of June 2022. The currently offering has raised $5.6 billion, and as of June 30, 2022, its aggregate NAV was $68.3 billion.