Select REIT Total Return Index (.DWRTFT) 22.19% decline over the same period. Usually, these distributions are credited 20 days after the end of every month. Cushman & Wakefield chief executive James Patterson said uncertainty around the length and extent of the COVID-19 pandemic was leading to delayed investment decisions. Jupiter 12 Industrial Portfolio, Canyon Industrial Portfolio, Meridian Industrial Properties, etc. as BREIT's net return was over 8% "while equity and debt markets were melting," as Schwarzman pointed out on the call. And management is also skilled and motivated, as insiders own around 40% of the company. We have over 500 five-star reviews from happy members who are already profiting from our real estate strategies. 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. But I think that public REITs are today far more opportunistic than BREIT. Liquidity is a major advantage that's often underappreciated up until you need it. It leads to "growth at all costs", which hurts returns, and this is why such externally-managed REITs are disliked by investors. BREIT has the authority to issue a total of 10,100,000,000 shares. See here for a complete list of exchanges and delays. Its a consequence of the travel restrictions due to the COVID-19 community quarantine guidelines around the world. Westfield tower at 100 Market Street, SydneyCredit:Peter Rae. STAG is a ~$10 billion enterprise value industrial REIT specializing in higher yielding, single-tenant net leased properties largely in secondary and tertiary markets. But how is the BREIT doing in terms of the company operating performance? Join us for a 2-week free trial and get access to all my highest conviction investment ideas. Blackstone of course wants you to invest in BREIT because they earn fees for managing it. Cliccando su Accetta tutto accetti che Yahoo e i suoi partner possano trattare i tuoi dati personali e utilizzare tecnologie come i cookie per mostrarti annunci e contenuti personalizzati, per la misurazione degli annunci e dei contenuti, per l'analisi del pubblico e per lo sviluppo dei prodotti. As of FY 2020, each common stock class received a gross distribution of $0.6354 per share. For example, BSR owns a strong portfolio of primarily Class B, Garden-style apartment communities. They were down a further 2% on Friday morning at $83.45. The latter deal included . ), And this is based on conservative estimates of property values. This is the most important reason. The REIT also represented a bid to win over high net-worth investors clamoring for private market products, which they believe perform better than those that are publicly traded. We spend 1000s of hours and over $100,000 per year researching the market for the most profitable investment opportunities and share the results with you at a tiny fraction of the cost. This kind of discount would imply either that BSR's property portfolio is sub-par, that its management is unskilled or conflicted, or that its balance sheet is weak, none of which are the case. Is It a Buy Right Now? Blackstone Inc. will purchase PS Business Parks, Inc. (NYSE:PSB) in an all-cash deal valued at approximately $7.6 billion, the two companies announced April 25. BREITs common stocks are priced at their fair value in terms of NAV net asset value. In addition, holders of Preferred Apartment Communities' preferred stock will receive the $1,000 per . The REIT is marketed to wealthy individual investors. But what about today? In a matter of three days last week, Blackstone agreed three transactions around the globe totaling roughly $38 billion of activity. Bellagio (NV), MGM Grand (NV), & Mandalay Bay (NV). Is now still a better time to invest in BREIT, or should you rather consider public REITs? Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Before that, it struck agreements to acquire three apartment REITs for a combined $13.1 billion, an industrial REIT for $3.1 billion, and a data center REIT for $10 billion. Since its inception in 2017, BREIT has consistently issued monthly distributions to its stockholders. Blackstone also said in the prospectus it had access to $9.3 billion in "immediate liquidity.". Blackstone Inc (BX.N) limited withdrawals from its $69 billion unlisted real estate income trust (REIT) on Thursday after a surge in redemption requests, an unprecedented blow to a franchise that . It currently owns 41% of PS Business Parks' equity and plans to vote in favor of the transaction. That means Blackstone will undoubtedly continue making headline-grabbing deals. 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). If you have an ad-blocker enabled you may be blocked from proceeding. Image courtesy of Bluerock Residential Growth REIT. More investors are entrusting it with more of their capital, giving it the funds to acquire more real estate. I am not receiving compensation for it (other than from Seeking Alpha). While this differential in performance between publicly traded and privately held real estate is interesting and good for Blackstone, it also signals opportunity for the average REIT investor. The deal values theindustrial REITat $7.6 billion. With dividends reinvested, the benchmark SPDR S&P 500 ETF (ticker: SPY) lost 18.2% last . 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. Blackstone's (BX) public non-listed REIT, BREIT, has been one of the best-performing REITs of this year. As of July 2021, BREIT has a total of 1,508 real estate properties in the . For example, Blackstone provides the option to repurchase shares from investors once a month. The company sees a massive untapped opportunity for high-net-worth investors since they have a low percentage of their portfolios currently allocated to alternatives. Blackstone Real Estate Income Trust, Inc. (BREIT) has real estate investments in diverse sectors such as residential, industrial, office, storage, and hotel/hospitality. Making the world smarter, happier, and richer. Their strongest market comes from the West and Southern states. The Motley Fool has positions in and recommends Blackstone. Aside from contributing to the overall returns, real estate debt investments also provide added liquidity especially for cash management in the Companys share repurchase plans. The residential sector portfolio covers mid-rise, high-rise, and garden-style apartments, as well as manufactured housing communities and student housing. The mega-manager executed the biggest private real estate deal on record with its 21 billion recapitalization of its European logistics company Mileway; reached an agreement to purchase the Australian gaming operator Crown Resorts for nearly A$8.9 billion ($6. Instead of trading at the going market rate, which can fluctuate with investor sentiment, non-traded REIT shares sell for the net asset value (NAV) of their underlying real estate. Certain parameters from financial statements will tell you how the company managed its investments through the ups and downs of the business cycle. Global investment firm Blackstone-sponsored Nexus Select Trust has filed the draft paper with market regulator Sebi to launch India's first public issue of retail REIT to raise around US$ 500 million (about Rs 4,000 crore), sources said. Do your own research or seek the advice of a qualified professional. 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. Class S shares were the first issued common stock of BREIT in 2017 at $10. Write by: We are the fastest-growing and best-rated stock-picking service on Seeking Alpha with 2,500+ members on board and a perfect 5/5 rating from 500+ reviews: You won't be charged a penny during the free trial, so you have nothing to lose and everything to gain. Editing by Rosalba O'Brien and Sam Holmes, Investors pull around $6 billion out of Binance's stablecoin, Revolut auditor flags concern about $576 mln of revenue in long-delayed 2021 accounts, Analysis: Traders relaxed as ECB starts running down massive bond holdings, Analysis: Rebounding U.S. dollar a growing headache for investors, Dollar Tree sees weak 2023 profit as costs mount, shoppers curb spending, Concerns about prospects of COVID vaccine maker Novavax sink shares, Russian internet speeds drop on hardware shortage, research finds, EU silence over Pfizer COVID contract talks is problem that won't go away -watchdog, Kohl's swings to surprise loss as margins crumble on steep discounts, Exclusive news, data and analytics for financial market professionals. Currently, BSR trades at a particularly stark discount. The private equity giant still has a lot of dry powder to continue shopping. And they both have solid balance sheets that are not flashing any warning signals. DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. 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. As a mortgage REIT, they have real estate debt investments through commercial and residential mortgage-backed securities. Credit Suisse analysts wrote in a note that they expected the REIT's woes to weigh on Blackstone's fee-related earnings and assets under management. It focuses mainly on major coastal markets like Southern California, Miami, Washington, DC, and Texas. By 2030, the institutions may hold some 7.6 million homes, or more than 40% of all single-family rentals on the market, according to the 2022 forecast by MetLife Investment Management. They are also open to venturing into healthcare and data center sectors. Clicca su Gestisci impostazioni per maggiori informazioni e per gestire le tue scelte. 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. Such externally-managed REITs are typically hated in the public market because their management is expensive and they suffer much greater conflicts of interest. Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Blackstone (BX.N) limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits . Three stocks that look particularly appealing considering their high-dividend yields and beaten-up share prices are Blackstone ( BX 0.30%), UMH Properties ( UMH 0.38%), and Mid-America Apartment . If you dont like it, we wont charge you a penny! This is to avoid market volatility especially with factors that do not directly relate to real estate. Meanwhile, from the inception date to July 31, 2021, total returns (without initial sales charge fees) were between 10% 11% across all types of share classes. The transaction has been unanimously approved by the REIT's Board of Directors and represents a premium of 63 percent to the REIT's most recently published Net Asset Value of $9.06 per share . While a cheaper fair value is good news for new investors. (the "Adviser"). The surge in redemptions at BREIT continues to get a lot of attention. 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. The residential rental market is another. The Blackstone Group again advanced its push into the multifamily market with a sizable acquisition spanning in-demand Sun Belt sectors. Ultimately, private REITs pool investors' capital and purchase various properties based on the fund's mandate. STAG offers an attractive, 4.7% dividend yield with a payout ratio slightly below 70%. They always want to grow because it maximizes the fees that they own. Source: BREIT Prospectus (as of June 30, 2021). Blackstone launched the REIT in 2017, piggybacking off the success of its real estate empire, which had by then outgrown its private equity business. If we were just investing in BREIT, we would miss these opportunities to gain geographic diversification. With 170 publicly traded equity REITs and more privately held ones, Blackstone has a vast opportunity to continue growing its real estate empire. Goldman Sachs mulls deal options after consumer flop, TotalEnergies buys CEPSAs upstream assets in Abu Dhabi, Reporting by Chibuike Oguh and Herb Lash in New York New York, June 22, 2021 - Blackstone Real Estate Income Trust, Inc. ("BREIT") announced today that it has entered into a definitive agreement to acquire Home Partners of America ("HPA"), valuing the company at $6.0 billion. Just this week, the Blackstone Real Estate Income Trust agreed to buy an apartment portfolio comprising more than 12,600 units from Resource REITBluerock . Barclays analysts downgraded their rating of Blackstone's stock to "equal weight" from "overweight" and cut their price target to $90 from $98 on Friday. Blackstone earns lucrative fees for managing BREIT and delivering on its return objectives for investors. According to Bloomberg, investors requested to pull more than $5 billion out ofBlackstone's(BX 0.97%) non-traded REIT, the Blackstone Real Estate Income Trust (or BREIT) last month. Nonetheless, they fueled investor concerns about the future of the REIT, which makes up about 17% of Blackstone's earnings. The majority of investors redeeming were from Asia and needed the liquidity, they said. 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