The Blackstone Real Estate Investment Trust continues to experience its slow-motion run on the bank, despite UC's pension and endowment bailout of $4.5 billion. Although BREIT puts a positive spin on it - essentially, the pace of the run is slowing - those trying to get their money out continue to get less than they are asking for:
Blackstone Real Estate Income Trust Inc., a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), announced that they’ve reached the threshold limit for redemptions in November 2023, after twelve consecutive months of prorations. In a letter to stockholders, the company reported that it has returned $13.8 billion of liquidity to investors since Nov. 30, 2022, when redemption proration began, while “maintaining resilient performance.” BREIT says a shareholder who began submitting repurchase requests just two months ago has received “nearly all” of their money back.
In November 2023, BREIT received $1.8 billion in requests under the repurchase plan. This represents an 18% decline from the previous month, October 2023. In accordance with their repurchase plan, BREIT is fulfilling approximately $1.2 billion, which is equal to 2% of NAV and represents 67% of the shares submitted for repurchase...
Full story at https://thediwire.com/blackstone-reit-november-redemption-requests-lowest-since-september-2022/.
As we have said many times before, the issue here is not whether - in the end - the $4.5 billion investment will pay off. The question is whether it was prudently decided.
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