The stock has a fifty day moving average price of $22.70 and a 200 day moving average price of $24.69. Simply Self Storage, East Coast Storage Portfolio, Cactus Storage Portfolio, etc. In a regulatory filing last month, Blackstone said that it has secured $24.1 billion of commitments for its latest real estate fund called Blackstone Real Estate Partners X. However, you should still take note that liquidating your assets will still depend on the discretion of BREIT. Jupiter 12 Industrial Portfolio, Canyon Industrial Portfolio, Meridian Industrial Properties, etc. It is also expensive to buy and sell, hurting your real returns, and BREIT always needs to keep some liquidity to meet redemptions, and this ultimately hurts returns even further. HPA's unique, resident-led business model expands housing access and choice, while providing a clear path to . Just a month after, it grew to 1,508 properties. Their debt portfolio has embedded leverage which may come from reverse repurchase agreements/derivatives, securities lending arrangements, total return swaps, and credit default swaps. Is this happening to you frequently? Blackstone has reported a 9.3% year-to-date return for its REIT, net of fees, a contrast to the publicly traded Dow Jones U.S. Jika diperluas, akan tampil daftar opsi pencarian yang akan mengganti input pencarian agar sesuai dengan pilihan saat ini. As a result, it will receive about $2.7 billion in cash when the deal closes. Update 2018-05-11: Blackstone reports that it's leverage has increased from below-average 41% to above average 60% (average for core plus is 50%). PS Business Parks owns a 27 million square foot portfolio of industrial, business park, traditional office, and multifamily properties located primarily in California, Miami, Texas, and . The stockholder distribution across the class shares is shown below. Blackstone will often claim that BREIT is superior to public REITs because it supposedly provides better diversification benefits. 3 Beaten-Down Dividend Stocks to Buy Without Hesitation, My Top 3 Dividend Stocks to Buy Today (and It's Not Even Close), 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 3 Stocks That Could Join Apple, Microsoft, and Alphabet in the $1 Trillion Club, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, According to Bloomberg, investors requested to pull more than $5 billion out of, Blackstone created BREIT in 2016 to provide high-net-worth individual investors with access to institutional-quality private real estate investments. That left it with $36.3 billion of dry powder. Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. Blackstone Inc. will purchase American Campus Communities, Inc. (NYSE: ACC) in a $12.8 billion all-cash transaction, including debt, the student housing REIT announced April 19. If you can't get your money back, does the "paper valuation" then have any meaning? If we were just investing in BREIT, we would miss these opportunities to gain geographic diversification. They are also open to venturing into healthcare and data center sectors. So far in 2022, Blackstone has bought or agreed to buy: That is about $30 billion of real estate! Making the world smarter, happier, and richer. As of July 2021, BREIT has a total of 1,508 real estate properties in the residential, industrial, net lease, self-storage, hotel/hospitality, retail, and office sectors located across the U.S. BREITs occupancy rates are all above 90% for almost all sectors, with the exemption of the hotels/hospitality sector which was heavily affected by the COVID-19 pandemic. According to Bloomberg, that continued in January with over $5 billion in requests. These deals showcase its growing, dominance in the commercial real estate sector, However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. February 27, 2023 3:33 PM. It is today priced at just 35 cents on the dollar due to the war in Ukraine and we think that it is very opportunistic. The general trend of NAV prices for all class shares was increasing until a sudden drop occurred in the first quarter of 2020 during the onset of the COVID-19 pandemic. I wrote this article myself, and it expresses my own opinions. A Blackstone spokesperson declined to comment on how the New York-based firm calculates the valuation of its REIT, but said its portfolio was concentrated in rental housing and logistics in the southern and western United States that have short duration leases and rents outpacing inflation. But I think that public REITs are today far more opportunistic than BREIT. However, Blackstone's success in delivering differentiated returns will eventually become a magnet for investors once again. It only fulfilled about a quarter of those redemptions because it hit its 2% monthly limit. Blackstone's public non-listed REIT, BREIT, has been one of the best-performing REITs of this year.It has managed to deliver a 9% total return with low volatility even as the public . But what about today? That was four times more than the company's redemption limit, forcing it to restrict redemptions once again. Blackstone Group(BX 0.97%) is back in the headlines again this week with another multi-billion-dollar purchase of a real estate investment trust (REIT). The majority of investors redeeming were from Asia and needed the liquidity, they said. Instead of daily price fluctuations, NAV REITs have a much less volatile movement. This year, the company has set its sights particularly on acquisitions of real estate investment trusts ("REITs"). Clearly, the company will buy whatever it views as the most attractive viable deal. Those sectors are benefiting from long-term tailwinds and inflation. As a result, the REIT allowed investors in November to redeem $1.3 billion, equivalent to approximately 43% of investors' repurchase requests. The price history tells you how the company is valued at face value. While commercial real estate itself is performing extraordinarily well this year and retaining its value, publicly traded REITs have shed around 20% of their value and now mostly trade at discounts to NAV. The total revenue coming from rental income also seems to increase consistently. I am not receiving compensation for it (other than from Seeking Alpha). The Vanguard Group, Inc. is currently the company's largest shareholder with 9.3% of shares outstanding. This time it's buying PS Business Parks . Does the Stock Market Have You Down? Their strongest market comes from the West and Southern states. The Motley Fool has a disclosure policy. LONDON (Reuters) -While there has been little wider fallout from this week's surge in redemption requests at an unlisted Blackstone real estate income trust (REIT), it is being read by some as a warning sign. Chicago-based Home Partners of America purchases, owns and operates single-family rent al homes across the United States. The Blackstone Group again advanced its push into the multifamily market with a sizable acquisition spanning in-demand Sun Belt sectors. This time it's buyingPS Business Parks(PSB) for $7.6 billion. Blackstone Inc. agreed to buy student-housing owner American Campus Communities Inc. in a deal valuing the company at about $12.8 billion, including debt, a bet that rents will continue to rise as . It has a strong balance sheet with mostly fixed-rate debt. BREIT has a diverse real estate property portfolio. It invests in real estate properties across 8 sectors and real estate debt through mortgage-backed securities and other real estate-related loans. Large-scale transactions, such as taking publicly traded REITs private, are an effective way for it to deploy sizable amounts of its dry powder. They always want to grow because it maximizes the fees that they own. The company will likely continue to battle this headwind until it works through its current backlog. As of their Q2 2021 report, total real estate debt investments have a fair value of $5.7B with a weighted average coupon of 5% and a weighted average maturity date of July 5, 2025. Were working to restore it. STAG offers an attractive, 4.7% dividend yield with a payout ratio slightly below 70%. Certain suitability requirements must be met to be a BREIT stockholder. I think that it is inferior and yet it is a lot more expensive. However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. In 2021, BREIT raised nearly $25 billion from investors. As of March 17, 2021, it has a total of 112,104 stockholders. They have outperformed the MSCI U.S. REIT Index which generated only -7.6%. Those returns will eventually draw more investors to BREIT. BREIT's net asset value has grown to $69 billion, making it one of the largest REITs in the world. Blackstone limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits amid investor concerns it was slow to adjust valuations as interest rates . Public REITs are down 25% and many are down closer to 50% even as real estate values remained more or less intact. Blackstone Mortgage Trust is not owned by hedge funds. That has put STAG at a 30% discount to NAV, one of the steepest discounts in its history as a public REIT. Cost basis and return based on previous market day close. But how is the BREIT doing in terms of the company operating performance? The private equity giant still has a lot of dry powder to continue shopping. Real estate major DLF has no plans to launch public offer of REIT in the next one year to monetise its rent-yielding commercial properties, its CEO Ashok Tyagi said. This covers BREITs direct property investments, equity in public and private real estate-related companies, and unconsolidated investments. The 100 Market Street site, which sits on top of the Westfield mall on the corner of Pitt Street and is the home of the Australian Taxation Office and retail landlord Scentre Group, will be Link REIT's maiden investment in Australia. I have no business relationship with any company whose stock is mentioned in this article. The industry leader for online information for tax, accounting and finance professionals. Blackstone has been seeking to diversify its investor base after tapping institutional investors, such as public pension funds, insurance firms and sovereign wealth funds, for its products for decades. Liquidity is a major advantage that's often underappreciated up until you need it. You can buy or sell with minimal fees with just a few clicks of mouse. Blackstone is the 1000-pound gorilla in any real estate room. Blackstone of course wants you to invest in BREIT because they earn fees for managing it. Dividends are paid and capital gains, if any, are shared. Please disable your ad-blocker and refresh. ) Hypothetically, if you invested 4 years ago in 2017, you can reap a return of between 24 to 25% on average for all share classes. We're currently running a sale at my private investing ideas service, High Yield Landlord, where members get access to portfolios, market alerts, real-time chat, and more. The latter deal included . Excellent. If I owned BREIT, I would try to get out of it to invest in public REITs instead. At $16.50 per share (as of this writing), BSR trades at a remarkable 25% discount to its Q1 2022 NAV per share of $21.98. BREIT has delivered differentiated returns for its investors since its formation. Blackstone managed a total of $236 billion of wealth held by individuals as of the end of September, up 43% year-on-year. July 16, 2021. So far in 2022, Blackstone has bought or agreed to buy: Preferred Apartment . See here for a complete list of exchanges and delays. Published - Tuesday, 20 Dec, 2022. Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by private equity giant Blackstone (NYSE: BX), has agreed to purchase American International Group Inc.'s (NYSE: AIG) interests in a U.S. affordable housing portfolio for approximately $5.1 billion, in an all-cash . Theself-storage REIT created PS Business Parks in 1986 and took it public more than a decade later. But most public REITs are internally-managed. (the "Adviser"). Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. The 2 main distinctions of REITs in terms of how they earn income are equity and mortgage REITs. DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. Many investors in the REIT are concerned that Blackstone has been slow to adjust the vehicle's valuation to that of publicly traded REITs that have taken a hit amid rising interest rates, a source close to the fund said. Liz Brumer-Smith (Blackstone): Blackstone is one of the leading alternative asset-management companies in the world. Learn More. In addition, it had commitments to deploy another $9.4 billion across its public U.S. REIT privatizations and a deal to buy an Australian casino operator. 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