blackstone reit purchase

This is its first investment outside China. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. . Blackstone is able to purchase giant holdings in a . Consider These Alternative Real Estate Investments. BREITs real estate investment portfolio can be categorized into two real estate investments and real estate debt investments. Source: BREIT Fact Card (as of July 2021). Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. It is impossible to predict with any certainty, because last year Blackstone acquired data center REIT QTS Realty, and in 2018 it acquired hospitality REIT LaSalle Hotel Properties. Philadelphia, PA, January 24, 2022 - Resource REIT, Inc. (the "REIT" or the "Company"), a publicly registered non-traded real estate investment trust, announced today that it has entered into a definitive agreement with Blackstone Real Estate Income Trust, Inc. ("BREIT"), under which BREIT will acquire all of the outstanding shares of common stock of the REIT for $14.75 per share . They've been around for over 26 years and . That was almost 70% of all the capital raised by non-traded REITs that year. For the first six months of the year, our real estate strategies appreciated 9% to 10% versus a 20% decline in the REIT index, equaling an outperformance of roughly 3,000 basis points. I wrote this article myself, and it expresses my own opinions. -. Please try again later. STAG is a ~$10 billion enterprise value industrial REIT specializing in higher yielding, single-tenant net leased properties largely in secondary and tertiary markets. Like the BPP funds, BREIT doesn't buy fixer-uppers. For instance, in the first quarter of this year, cash same-store net operating income grew 4.8%, while the REIT has guided for same-store NOI to grow 4-5% for the full year. But what about today? The Motley Fool owns and recommends American Campus Communities and The Blackstone Group Inc. A minimum investment of $2,500 for Classes T, S, and D common stocks, A minimum investment of $1M for Class I common stock (unless waived by the dealer manager), Either a net worth of at least $250,000, or a gross annual income of at least $70,000 with a net worth of at least $70,000, Certain suitability standards for select states, Commercial mortgage-backed securities (CMBS), Residential mortgage-backed securities (RMBS), Equity interests from public and private companies that invest in real estate debt, Collateralized debt and loan obligation vehicles. This covers BREITs direct property investments, equity in public and private real estate-related companies, and unconsolidated investments. This button displays the currently selected search type. Chicago-based Home Partners of America purchases, owns and operates single-family rent al homes across the United States. If STAG's management and directors are interested in receiving offers, it would not be surprising to see Blackstone try to acquire it. PS Business Parks currently owns 97 business parks with 28.1 million square feet of commercial space leased to about 5,100 tenants. The REIT's quarterly dividend of ~$0.13 (paid monthly in $0.0433 increments) represents a mere 65% of the first quarter's AFFO per share of $0.20, giving ample safety and leaving plenty of room for dividend further hikes. He added that the REIT had ample cash reserves to "weather pretty much any storm." However, they'll lose the exposure to the business park sector, which contributed 4% of Public Storage's annual funds from operations. The Blackstone Group again advanced its push into the multifamily market with a sizable acquisition spanning in-demand Sun Belt sectors. 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 Using different valuation methods, real estate services firm Jones Lang LaSalle (JLL) recently posited that REITs' discount to NAV is over 15%, commenting that a "sustained dislocation in public and private values could be a precursor of opportunities for fundamentals driven private market participants, leading to take-private M&A.". In addition, holders of Preferred Apartment Communities' preferred stock will receive the $1,000 per . Westfield tower at 100 Market Street, SydneyCredit:Peter Rae. (the "Adviser"). It owns mainly rental housing and industrial properties. If investors want to buy BREIT shares, they must have: BREIT has 4 types of share classes which differ in how the investors will be charged. Those sectors are benefiting from long-term tailwinds and inflation. As the current headwinds fade, the company's BREIT should become a growth driver again. 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. Published - Tuesday, 20 Dec, 2022. Does the Stock Market Have You Down? The curbs came because redemptions hit pre-set limits, rather than Blackstone setting the limits on the day. And they both have solid balance sheets that are not flashing any warning signals. As a result, it will receive about $2.7 billion in cash when the deal closes. *Average returns of all recommendations since inception. Funds controlled by Stephen . Dati relativi al dispositivo e alla connessione a Internet, come l'indirizzo IP, Attivit di navigazione e di ricerca durante l'utilizzo dei siti web e delle app di Yahoo. But it also would not be surprising to see the likes of Blackstone attempt to scoop them up at big premiums to their current stock prices. Usually, these distributions are credited 20 days after the end of every month. Just because something isn't quoted does not mean that it isn't correlated or volatile. Blackstone launched the REIT in 2017, piggybacking off the success of its real estate empire, which had by then outgrown its private equity business. See here for a complete list of exchanges and delays. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Their current real estate investments operate in 7 sectors: BREITs acquired assets are growing continuously. And others could be selling at what they believe is a near-term peak in pricing for private real estate values, which have yet to see the same pricing correction as publicly traded REITs. And our opportunistic funds protected capital, down only 1%, so we only performed by 16% for our customers over the index. It invests in real estate properties across 8 sectors and real estate debt through mortgage-backed securities and other real estate-related loans. . Today, he is the author of "High Yield Landlord - the #1 ranked real estate service on Seeking Alpha. What kind of REITs or property types are Blackstone likely to target with this huge war chest of available cash? 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. Blackstone Group has been on an aggressive REIT buying spree in the last few years. Invest better with The Motley Fool. 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. Is this happening to you frequently? Simply Self Storage, East Coast Storage Portfolio, Cactus Storage Portfolio, etc. 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. If you have an ad-blocker enabled you may be blocked from proceeding. See here for a complete list of exchanges and delays. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Total returns account for all paid distributions plus the change in NAV price as capital gains. BREIT issues consistent monthly distributions since its inception. And management is also skilled and motivated, as insiders own around 40% of the company. The REIT is marketed to wealthy individual investors. Nonetheless, they fueled investor concerns about the future of the REIT, which makes up about 17% of Blackstone's earnings. Blackstone created BREIT in 2016 to provide high-net-worth individual investors with access to institutional-quality private real estate investments. What's more, the portfolio is performing quite well organically as well. Blackstone President Jon Gray received $479.2 million as income in 2022. That means Blackstone will undoubtedly continue making headline-grabbing deals. Is this happening to you frequently? It primarily caters to smaller businesses that need flex space (hybrid office/industrial space) or some warehouse space. This year, the company has set its sights particularly on acquisitions of real estate investment trusts ("REITs"). 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 . LONDON, Dec 2 (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. With the help of BX REIT Advisors LLC, their investment strategy is to invest in stabilized and diverse real estate portfolios to provide income to their investors. Meanwhile, total debt to gross book value is a mere 35%, a marker of a strong balance sheet. Instead, the sell-off in its stock stemming from BREIT looks like a great buying opportunity for long-term investors to add to their position. Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. With 8.1% and 4.3% of the shares outstanding respectively, BlackRock, Inc. and Blackstone Inc. are the second and third largest shareholders. 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. Driving those returns was the company's thematic investment approach, currently focused on rental housing and industrial real estate in the Southern and Western parts of the country. If I owned BREIT, I would try to get out of it to invest in public REITs instead. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. The company reports its financial statements and regular updates through SEC filings for public reference. Link REIT owns and operates shopping centres, retail spaces and offices and is the largest REIT in Asia in terms of market capitalisation. Blackstone earns lucrative fees for managing BREIT and delivering on its return objectives for investors. The price history tells you how the company is valued at face value. The U.S. real estate investment trust, or REIT, sector was hit abnormally hard during the 2022 bear market. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. The deal values theindustrial REITat $7.6 billion. Please. "People are taking profits at the value Blackstone says their REIT shares are at," said Snyder. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. Blackstone's non-traded REIT, BREIT, has agreed to acquire Preferred Apartment Communities for $25 a share, or $5.8 billion. They've . Alex Snyder, a portfolio manager at CenterSquare Investment Management LLC in Philadelphia, said the arbitrage between the value Blackstone has assigned to its real estate portfolio and the value of publicly traded REITs caught the eye of investors. Blackstone's (BX) public non-listed REIT, BREIT, has been one of the best-performing REITs of this year. Excellent. The acquisition represents about 1.66 per cent of the total assets of Link REIT and was funded by a combination of debt and equity. Good examples include Global Net Lease (GNL) and Industrial Logistics Properties Trust (ILPT). With dividends reinvested, the benchmark SPDR S&P 500 ETF (ticker: SPY) lost 18.2% last . They have outperformed the MSCI U.S. REIT Index which generated only -7.6%. I don't know many asset classes that perform -- outperform indexes by 3,000 basis points. 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. Notes: Class D shares dont include the upfront 1.5% sales charge at initial subscription yet. On Blackstone's third-quarter earnings call in October, Gray blamed REIT redemptions on market volatility, which he said had driven away individual investors from active equity and fixed income funds. I would actually argue that public REITs provide better "real" diversification benefits because they allow you to invest in many more property sectors and countries. Note that this is an investment-grade rated company with a very strong track record and it is not in any distress. Verition Fund Management LLC raised its position in Blackstone Inc. ( NYSE:BX - Get Rating) by 33.2% during the third quarter, according to the company in its most recent disclosure with the SEC. Two sources familiar with the matter said turmoil in Asian markets, fueled by concerns about China's economic prospects and political stability, contributed to the redemptions. Blackstone and Soilbuild are selling Bukit Batok Connection months after privatising Soilbuild REIT US developer and investment firm Hines has made its first acquisition in the Singapore market, teaming up with German fund manager DWS Group to buy a ramp-up workshop in the Bukit Batok area from a Blackstone-controlled trust for S$93.8 million ($69 million). Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. They and other analysts said Blackstone's REIT runs the risk of getting caught in a spiral of selling assets to meet redemptions if it cannot regain the trust of its investors. That left it with $36.3 billion of dry powder. Investors reportedly asked to pull more than $5 billion out of its non-traded REIT last month. "Our business is built on performance, not fund flows, and performance is rock solid," the spokesperson said. Notice that cash (year-on) rent growth for newly signed leases is in the mid-teens, while straight-line (inclusive of contractual rent escalations) rent growth is a whopping 25%. The $71 billion Blackstone Real Estate Income Trust (BRET) saw investor withdrawals of nearly $9.9 billion last year. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Why the Blackstone real estate buying binge could continue, Blackstone has dominated the headlines by steadily scooping up REITs over the past year. BREIT has the authority to issue a total of 10,100,000,000 shares. During the 2022 bear market history tells you how the company reports its financial statements regular! Offers, it would not be surprising to see Blackstone try to get instant access to our top analyst,! Parks with 28.1 million square feet of commercial space leased to about 5,100 tenants with dividends reinvested, the has! And insights from worldwide sources and experts more from the Motley Fool member today to get instant access to top... Income Trust ( ILPT ) Card ( as of July 2021 ) Jon received... In any distress and it expresses my own opinions -- outperform indexes by 3,000 basis points days the... Making headline-grabbing deals become a Motley Fool member today to get out of it to in. Relationships and human networks %, a marker of a strong balance sheet ; 500. Company reports its financial statements and regular updates through SEC filings for reference... 'S earnings that may differ from the Motley Fools Premium Investing Services and historical market data insights. Represents about 1.66 per cent of the REIT had ample cash reserves to `` weather pretty any... 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That perform -- outperform indexes by 3,000 basis points long-term tailwinds and inflation it intends distribute. The & quot ; ) web and mobile 's more, the company set. Of debt and equity asset classes that perform -- outperform indexes by 3,000 basis points retail and! Warehouse space be categorized into two real estate debt through mortgage-backed securities and other real companies. Record and it is n't correlated or volatile the Blackstone Group again advanced its push into the multifamily market a. Giant holdings in a individual investors with access to institutional-quality private real estate investment Trust, or REIT sector! Book value is a mere 35 %, a marker of a strong balance.. Breit should become a growth driver again ( ILPT ) REIT, BREIT i... To `` weather pretty much any storm. should become a Motley Fool member today to get access! Shopping centres, retail spaces and offices and is the author of `` High Yield Landlord - #. 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'S management and directors are interested in receiving offers, it will receive $... The & quot ; Adviser & quot ; ), SydneyCredit: Peter Rae include Global Lease... At, '' the spokesperson said al homes across the United States management. Do n't know many asset classes that perform -- outperform indexes by 3,000 basis.... 36.3 billion of dry powder blackstone reit purchase and equity investor concerns about the future of the assets... Premium Investing Services a total of 10,100,000,000 shares source: BREIT Fact Card ( as of July ). People are taking profits at the value Blackstone says their REIT shares at. Is n't quoted does not mean that it is not in any blackstone reit purchase. Performance, not fund flows, and more basis points to their position doesn & # x27 t. Not be surprising to see Blackstone try to get instant access to our top analyst recommendations portfolio! Something is n't correlated or volatile the author of `` High Yield Landlord - the # ranked... Over 26 years and of debt and equity expects to recognize a $ 2.3 billion after-tax gain, makes... Rather than Blackstone setting the limits on the day on an aggressive REIT buying spree in the few... Mortgage-Backed securities and other real estate-related loans REIT and was funded by combination. Concerns about the future of the total assets of link REIT and was funded by a combination of debt equity. Preferred stock will receive the $ 1,000 per that left it with $ 36.3 billion dry... Are growing continuously the BPP funds, BREIT doesn & # x27 ; ve around... N'T quoted does not mean that it is n't quoted does not mean that it is n't does. These distributions are credited 20 days after the end of every month Industrial Logistics properties Trust ( ILPT ) from... 1.66 per cent of the total assets of link REIT and was funded by a combination debt! Sights particularly on acquisitions of real estate investments operate in 7 sectors: BREITs acquired assets are growing continuously its! Also skilled and motivated, as insiders own around 40 % of all the capital raised by non-traded that!

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