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BREIT Limits Redemption Requests for Sixth Straight Month

Blackstone Real Estate Income Trust Inc., a non-traded real estate investment trust sponsored by Blackstone Group, announced that the company limited redemption requests again last month.

April marks the sixth month in which BREIT has limited investor requests to redeem their shares.

The company received repurchase requests totaling $4.5 billion in April, which is flat month-over-month and 15% lower than the peak in January 2023. In accordance with the company’s repurchase plan, BREIT is fulfilling approximately $1.3 billion, which is equal to 2% of NAV and represents 29% of the shares submitted for repurchase. Repurchases were fulfilled at the March 31, 2023, NAV per share for the applicable share class.

In March 2023, the $70 billion non-traded real estate investment trust received repurchase requests of $4.5 billion and fulfilled approximately $666 million, just 15% of the shares submitted for repurchase.

BREIT noted that 96% of their U.S. investor base and 93% of investors overall elected to remain invested in BREIT this month. As The DI Wire previously reported, Blackstone Group’s chief executive officer Steve Schwarzman defended the company’s flagship non-traded real estate investment trust by claiming that redemptions were predominantly coming from overseas investors.

Blackstone REIT, for the first time in its six-year history, began to gate redemption requests in November, after large amount of repurchase requests from investors exceeded the 5% quarterly limit of the company’s net asset value. Since, the company has paid out $6.2 billion to redeeming shareholders.

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

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