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EBGuy
2023 Mar 22, 12:53pm
On the flip side this BREIT may have turned a corner...
Blackstone Real Estate Income Trust Inc., the Blackstone Inc. fund for affluent individual investors, reported its biggest monthly total return in six months as February’s dividend payments and rising rents offset a decline in property valuations.BREIT’s lowest-fee share class had a total return of 0.7% for the month, bringing trailing 12-month returns to 5.7%, according to a report posted Tuesday. The share class posted an 8.4% gain in all of 2022 and a 30.2% increase in 2021. Growth slowed last year as rising interest rates undercut real estate values and the tide of investor inflows reversed into a torrent of redemption requests. BREIT restricted withdrawals for the four months through February as redemption demand exceeded monthly and quarterly limits.In addition to higher income from rent and steady dividends, BREIT’s February returns benefited from hedging positions that added value as interest rates rose. Commercial real estate prices fell 1.4% across all asset classes in February and are down 15% in the trailing 12 months, according to Green Street.
Blackstone Real Estate Income Trust Inc., the Blackstone Inc. fund for affluent individual investors, reported its biggest monthly total return in six months as February’s dividend payments and rising rents offset a decline in property valuations.BREIT’s lowest-fee share class had a total return of 0.7% for the month, bringing trailing 12-month returns to 5.7%, according to a report posted Tuesday. The share class posted an 8.4% gain in all of 2022 and a 30.2% increase in 2021. Growth slowed last year as rising interest rates undercut real estate values and the tide of investor inflows reversed into a torrent of redemption requests. BREIT restricted withdrawals for the four months through February as redemption demand exceeded monthly and quarterly limits.In addition to higher income from rent and steady dividends, BREIT’s February returns benefited from hedging positions that added value as interest rates rose. Commercial real estate prices fell 1.4% across all asset classes in February and are down 15% in the trailing 12 months, according to Green Street.
2
EBGuy
2023 Apr 3, 12:10am
Interesting development...
As private trading platforms establish their own markets for non-traded funds like BREIT, issuers like Blackstone will lose control over who gets to buy the fund and how new buyers can access it. Until now, investors had to have an account at a broker-dealer that had a selling agreement with Blackstone.
...
Prices in the private REIT market have held up much better than those of publicly traded REITs, prompting some investors to question the disparity. Others have questioned whether the models of BREIT and SREIT, both sold through brokers and advisors, were properly explained to investors. Many of the redemption requests rportedly have come from Asia.
I've been wondering about this disparity as well...
As private trading platforms establish their own markets for non-traded funds like BREIT, issuers like Blackstone will lose control over who gets to buy the fund and how new buyers can access it. Until now, investors had to have an account at a broker-dealer that had a selling agreement with Blackstone.
...
Prices in the private REIT market have held up much better than those of publicly traded REITs, prompting some investors to question the disparity. Others have questioned whether the models of BREIT and SREIT, both sold through brokers and advisors, were properly explained to investors. Many of the redemption requests rportedly have come from Asia.
I've been wondering about this disparity as well...
Quarterly and calendar year (last column) net returns