Blackstone-REIT Still Draining - Part 10

The slow-motion run on the bank at the Blackstone Real Estate Investment Trust (BREIT) continues. UC provided $4.5 billion bailout funding early on in the run from the pension and endowment. With one exception, the Regents questions about the deal, to the extent they had questions, dealt mainly with landlord-tenant relations. As blog readers will know, there are questions about the financial and legal prudence of that investment, regardless of how it may turn out in the end.

From Yahoo-Finance:

...Blackstone Real Estate Income Trust’s investors sought to pull $2.2 billion last month, compared with $2.1 billion in September, according to a letter to shareholders Wednesday. BREIT returned about $1.3 billion to investors, or about 56% of what was requested, the “highest payout percentage” since redemptions were restricted last year, according to the letter. The real estate trust is a colossus in US property markets, with its reach spanning from apartments to data centers. In late 2022, BREIT curbed withdrawals after redemption requests picked up and its wealthy clients became jittery about having money locked into commercial real estate. Property values have fallen as the costs of borrowing increased with the Federal Reserve’s rate hikes...

Full story at https://finance.yahoo.com/news/blackstone-66-billion-real-estate-124602222.html.