BREIT Meets Investor Withdrawals, Waives Limits for June

BREIT fully honored investor redemption requests for June 2024, surpassing its usual withdrawal limits for the third time in four months, amid a significant decline in overall redemption requests.

July 05, 2024

Blackstone Real Estate Income Trust Inc. (BREIT), a publicly registered non-traded REIT sponsored by The Blackstone Group, announced that it will fully honor investor redemption requests for June 2024. This is the third time in four months that BREIT has surpassed its own monthly or quarterly redemption limits.

In June, BREIT received $806 million in redemption requests, close to the lowest level in two years and an 85% decrease from the peak in January 2023. This figure also represents a 50% decline from the previous month, following Starwood REIT’s amendment to its share repurchase program.

Due to unusual conditions that caused a spike in May, BREIT’s majority independent board of directors approved exceeding the 5% net asset value (NAV) quarterly limit to satisfy 100% of June repurchase requests. BREIT had already fulfilled 100% of repurchase requests for February through May 2024. The June repurchase requests equaled approximately 1.4% of NAV.

Since its inception over seven years ago, BREIT has delivered a 10.3% annualized net return, more than double that of publicly traded REITs, and has significantly outperformed the broader private real estate market over the same period. In 2024, BREIT has experienced positive momentum with five consecutive months of gains and Class I shares returning +2.3% year-to-date.

BREIT highlighted its focus on high-growth sectors and markets, with about 85% growth in rental housing, industrial properties, and data centers, and approximately 70% growth located in Sunbelt markets. The trust also emphasized its robust balance sheet, featuring nearly 90% fixed-rate debt for the next five years, and growth opportunities in its data center development pipeline and warehouse portfolio driven by demand for AI and cloud services.