Blackstone Real Estate Income Trust Inc., a non-traded real estate investment trust sponsored by Blackstone Inc. (NYSE: BX), received redemption requests totaling approximately $3.0 billion in August, which BREIT says was the lowest month of repurchase requests since October 2022 (prior to when the company began to prorate redemptions), 44% lower than the peak in January 2023, and the fourth consecutive month of declining repurchase requests.
In accordance with their repurchase plan, BREIT is fulfilling approximately $1.3 billion of the $3.0 billion requested, which is equal to 2% of NAV and represents 43% of the shares submitted for repurchase. The company says repurchases were fulfilled at the July 31, 2023 NAV per share for applicable share classes.
BREIT has paid out $10.7 billion to redeeming shareholders since November 30, 2022. The company says a shareholder who began submitting repurchase requests in November has received approximately 96% 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.
The company also recently sold Simply Self Storage for $2.2 billion in July 2023.