The Blackstone Group again advanced its push into the multifamily market with a sizable acquisition spanning in-demand Sun Belt sectors. 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. The asset management behemoth boasts roughly $50 billion in dry powder capital earmarked for global real estate, including a new real estate fund with over $24 billion in commitments from investors so far. Blackstone told investors in a letter it would curb withdrawals from its REIT after it received redemption requests in November greater than 2% of its monthly net asset value and 5% of its quarterly net asset value. PS Business Parks owns a 27 million square foot portfolio of industrial, business park, traditional office, and multifamily properties located primarily in California, Miami, Texas, and . At times, they might not even repurchase at all when you need the money urgently. Blackstone Inc on Monday agreed to buy real estate investment trust (REIT) PS Business Parks for $7.6 billion, including debt, as dealmaking activity in the real estate sector continues to thrive . Blackstone Mortgage Trust, Inc. has a 12 month low of $20.87 and a 12 month high of $32.90. Clearly, that is Blackstone's view. He has authored award-winning academic papers on REIT investing, been featured on numerous financial media outlets, has over 50,000 followers on SeekingAlpha, and built relationships with many top REIT executives. However, it recovered by the end of 2020. Dollar Tree Inc forecast annual profit well below estimates on Wednesday, hurt by elevated freight and investment costs and as consumers rein back spending on discretionary items. This time it's buying PS Business Parks . It owns mainly rental housing and industrial properties. Liz Brumer-Smith (Blackstone): Blackstone is one of the leading alternative asset-management companies in the world. With public REITs, you have much more flexibility. The Motley Fool has a disclosure policy. HPA has a portfolio of over 17,000 homes throughout the U.S. Currently, BSR trades at a particularly stark discount. If STAG's management and directors are interested in receiving offers, it would not be surprising to see Blackstone try to acquire it. If you want full access to our Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Yield Investor. Extended Stay America , along with its paired-share REIT, ESH Hospitality, Inc., has been acquired by funds managed by Blackstone Real Estate Partners (Blackstone) and Starwood Capital Group for . Please be aware of the risks associated with these stocks. Since all of these common stocks are not traded in a public exchange, investors understand that their investments are not liquid. He added that the REIT had ample cash reserves to "weather pretty much any storm." To be fair, BREIT is a pretty vehicle and it has a strong track record. Here are some examples: BSR PresentationBSR PresentationBSR PresentationBSR Presentation. Blackstone Stock Keeps Soaring Higher. Blackstone limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits amid investor concerns it was slow to adjust valuations as interest rates . It only fulfilled about a quarter of those redemptions because it hit its 2% monthly limit. However, it recovered by the end of 2020 and soared in the first half of 2021. 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. Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile. Overall, BREIT is one of the leading players in the NAV REIT market industry. Currently, Blackstone has a market capitalization of $66.78 billion. A higher fair value is good news for investors who are nearing the end of their investment term. Cap rates have expanded a bit, but so has the property NOI in most cases. Blackstone's public non-listed REIT, BREIT, has been one of the best-performing REITs of this year.It has managed to deliver a 9% total return with low volatility even as the public . Despite the pandemic, they acquired worth $10.5B of real estate properties in the multifamily, industrial, and net lease sectors in 2020. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. Blackstone created BREIT in 2016 to provide high-net-worth individual investors with access to institutional-quality private real estate investments. When expanded it provides a list of search options that will switch the search inputs to match the current selection. The deal values the, One interesting aspect of this deal is that it will provide an unexpected windfall to shareholders of. Even if you expected its property values to drop a bit, its share price could still double before reaching its net asset value. Jupiter 12 Industrial Portfolio, Canyon Industrial Portfolio, Meridian Industrial Properties, etc. Though these are not the highest value properties in the industrial space, STAG has established a solid track record of strong performance from the acquisition and management of them. Please disable your ad-blocker and refresh. DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. Class S and T shares dont include the upfront 3.5% sales charge at initial subscription yet. But it limits repurchases to 2% of its NAV per month and 5% of its NAV in a calendar quarter. The industry leader for online information for tax, accounting and finance professionals. While a cheaper fair value is good news for new investors. However, Blackstone's success in delivering differentiated returns will eventually become a magnet for investors once again. I have no business relationship with any company whose stock is mentioned in this article. Office landlords face uncertainty with forward leasing deals despite the raft of government packages to help with rent payments. Blackstone has been seeking to diversify its investor base after tapping institutional investors, such as public pension funds, insurance firms and sovereign wealth funds, for its products for decades. BREITs common stocks are priced at their fair value in terms of NAV net asset value. Try it Free for 2-Weeks. Residential, specifically multi-family homes, bring the most rental revenue to BREITs portfolio, followed by the industrial sector. That, for us at High Yield Landlord, is not enough on its own. Today, he is the author of "High Yield Landlord - the #1 ranked real estate service on Seeking Alpha. Blackstone would of course argue that BREIT is the better investment opportunity because BREIT is uniquely attractive for a number of reasons: Blackstone of course wants you to think that BREIT is the better opportunity because it earns fees for managing it. BREIT is a hybrid REIT because it deals with both. The REIT turmoil is a setback for two of Blackstone's strategies that helped it become the world's biggest alternative asset manager with $951 billion in assets: real estate investing and attracting high net-worth individuals. However, net losses have been incurred since 2017 which can be attributed to the real estate debt portfolio. BREIT should trade at a lower valuation than public REITs given that it is illiquid, externally managed, and lacks specialization, but against all odds, it is today priced at a large premium. Jussi Askola is a former private equity real estate investor with experience working for a +$250 million investment firm in Dallas, Texas; and performing property acquisition in Germany. A majority (by 89%) of BREITs income comes from rental revenues across a diverse set of asset classes much of it comes from residential and industrial sectors. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Blackstone REIT agreed to buy all of the outstanding shares of Preferred Apartment Communities for $25.00 each, and once the transaction closes, the REIT's common stock will no longer be listed on the New York Stock Exchange. This button displays the currently selected search type. Disclosure: I/we have a beneficial long position in the shares of CORE PORTFOLIO + RETIREMENT PORTFOLIO + INTERNATIONAL PORTFOLIO either through stock ownership, options, or other derivatives. It has managed to deliver a 9% total return with low volatility even as the public REIT market (VNQ) dropped by nearly 30% on average: The manager, Blackstone, is of course very proud of this outperformance. And our opportunistic funds protected capital, down only 1%, so we only performed by 16% for our customers over the index. I wrote this article myself, and it expresses my own opinions. For FY 2020, Class I shares were still the highest ($0.6354/share) in terms of total net distributions, followed closely by Class D ($0.608/share). This is the most important reason. 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. EmeryTech Office (CA) & Coleman Highline Office. 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. 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. 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 . BREIT outperformed the MSCI U.S. REIT Index net return in 2020 (-7.6%) with a 6.1% net return of Class S shares which has the most number of stockholders among its common shares. 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. Select REIT Total Return Index (.DWRTFT) 22.19% decline over the same period. That's one of several long-term growth drivers. As of June 30, 2021, their total properties were 1,463. The continued surge in such requests has kept the pressure on Blackstone's stock price. Blackstone has reported a 9.3% year-to-date return for its REIT, net of fees, a contrast to the publicly traded Dow Jones U.S. They are also open to venturing into healthcare and data center sectors. Therefore, I continue to accumulate real estate through the public market. Is this happening to you frequently? On Thursday, the firm said the REIT had agreed to sell its 49.9% interest in two Las Vegas casinos for $1.27 billion. "Our business is built on performance, not fund flows, and performance is rock solid," the spokesperson said. HPA's unique, resident-led business model expands housing access and choice, while providing a clear path to . 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. Managing more than $975 billion, the company invests money for wealthy . Puoi cambiare le tue preferenze in qualunque momento nella sezione Le tue impostazioni per la privacy. Class S shares were the first issued common stock of BREIT in 2017 at $10. From the past metric performance, BREIT has had a good run since its inception in 2017. I have no business relationship with any company whose stock is mentioned in this article. Blackstone has agreed to pay $187.50 per share in cash for PS Business Parks, a roughly 15% premium to its average share price over the last two months. 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%. Associate Director at Atlantic Group. Blackstone limited withdrawals from its $69 billion unlisted REIT on Thursday after redemption requests hit pre-set limits amid investor concerns it was slow to adjust valuations as . 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