Managing more than $975 billion, the company invests money for wealthy . Published - Tuesday, 20 Dec, 2022. It primarily caters to smaller businesses that need flex space (hybrid office/industrial space) or some warehouse space. 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. BREIT is an externally-managed REIT. The U.S. real estate investment trust, or REIT, sector was hit abnormally hard during the 2022 bear market. DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. Blackstone continues making major deals across the multifamily sector by planning to acquire Bluerock Residential Growth REIT in an all-cash . 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. 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. Blackstone Mortgage Trust is not owned by hedge funds. Please be aware of the risks associated with these stocks. STAG offers an attractive, 4.7% dividend yield with a payout ratio slightly below 70%. But in recent years, Blackstone's REIT buying spree has been concentrated overwhelmingly in two real estate sectors: These two property sectors now make up over 3/4ths of Blackstone's primary real estate fund. Blackstone is also active in credit, infrastructure, hedge funds, insurance, secondaries, and growth . Is this happening to you frequently? As a mortgage REIT, they have real estate debt investments through commercial and residential mortgage-backed securities. The 28,385 square metre building is 10-storeys and was redeveloped in 2010-11 as part of the Westfield Sydney redevelopment. Dividends are paid and capital gains, if any, are shared. Last REIT standing. Their recent property acquisitions recorded as of June 2021 were 15 investments 17 residential properties, 28 industrial properties, and 1 office property amounting to $2.1B. What Blackstone's REIT Acquisition Spree Is Telling Investors, Blackstone Is Becoming a Real Estate Powerhouse, 2 FAANG Stocks Billionaires Are Selling in Droves and 1 They Can't Stop Buying, 3 Stocks That Could Join Apple, Microsoft, and Alphabet in the $1 Trillion Club, 1 Bargain-Basement Warren Buffett Stock Down 78% to Buy Before It Starts Soaring, 2 Growth Stocks That Can Turn $250,000 Into $1 Million by 2030, With billions of dollars in dry powder across its real estate private equity funds and cash continuing to pour into its funds. . I wrote this article myself, and it expresses my own opinions. Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. ET, This 4.5%-Yielding Dividend Stock Has $50 Billion to Continue its Real Estate Buying Binge, 1 Roaring Dividend Stock That's Leading the Market Recovery. 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. Do your own research or seek the advice of a qualified professional. Total returns could be higher if you account for the accumulated share distributions throughout your investment years. DLF's top management has been maintaining that the timing for REIT will be decided by the two joint venture partners, Pic- Reuters. While it has steadily put that money to work, cash continues flowing into BREIT's coffers because of its growing reputation for delivering top-tier returns. "These all will continue put pressure on Blackstone's premium valuation," they wrote. Their corporate headquarters is located at 345 Park Avenue, New York. 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. All of these are made possible through sponsorship from the Real Estate Group of The Blackstone Group, Inc. with decades of real estate experience. We do not believe it is a good idea to buy a REIT simply because it looks like an attractive buyout prospect for big-money asset managers and private real estate funds. These properties are overwhelmingly concentrated in Texas, especially Austin, Dallas/Fort Worth, and Houston. In the first quarter, same-community net operating income surged 16.3% year-over-year on the back of rent growth for new leases of 17.4% and renewals of 9.0%. Click here to learn more!. While commercial real estate itself is performing extraordinarily well this year and retaining its value, publicly traded REITs have shed around 20% of their value and now mostly trade at discounts to NAV. Investment advisors assess the shares and report them in terms of fair value, like how mutual funds work. By. As of their Q2 2021 report, total real estate debt investments have a fair value of $5.7B with a weighted average coupon of 5% and a weighted average maturity date of July 5, 2025. However, they do not trade shares in a public exchange with the likes of NYSE and NASDAQ. However, they also have non-U.S. investments, particularly in Europe, to a small extent (by about 1%). Last week, it reached a $12.8 billion deal to acquire student housing-focused, . Investors always going with the big names to their detriment. The $71 billion Blackstone Real Estate Income Trust (BRET) saw investor withdrawals of nearly $9.9 billion last year. Ascendas Hospitality and Hong Kong-based Gaw Capital declined to comment. 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. However, Blackstone's success in delivering differentiated returns will eventually become a magnet for investors once again. I am not receiving compensation for it (other than from Seeking Alpha). This button displays the currently selected search type. BREITs occupancy rates are all above 90% for almost all sectors, with the exemption of the hotels/hospitality sector. BREITs common stocks are priced at their fair value in terms of NAV net asset value. Ultimately, private REITs pool investors' capital and purchase various properties based on the fund's mandate. 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. Having invested in data centres in the US and Europe, Blackstone has eyes on Asia-Pacific - starting with India. I don't know many asset classes that perform -- outperform indexes by 3,000 basis points." 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. Those sectors are benefiting from long-term tailwinds and inflation. Making the world smarter, happier, and richer. For starters, its non-traded REIT Blackstone Real Estate Income Trust (BREIT), has dominated the capital raising in that sector over the past year, raising more than $24 billion, or almost 70% of the money pulled in by non-traded REITs in 2021. 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. And management is also skilled and motivated, as insiders own around 40% of the company. Is this happening to you frequently? Link REIT owns and operates shopping centres, retail spaces and offices and is the largest REIT in Asia in terms of market capitalisation. Please. (Reuters) - Cvent Holding Corp, a U.S. software provider that facilitates in-person and virtual meetings, has rejected a $3.9 billion acquisition offer from buyout firm Blackstone . 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 . However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. These deals showcase its growing, dominance in the commercial real estate sector, However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. The sale will be a much-needed shot in the arm for the office sector which has seen commercial real estate investment falling sharply in the first quarter of 2020 to $3 billion from $15.9 billion in the previous quarter. But most public REITs are internally-managed. And our opportunistic funds protected capital, down only 1%, so we only performed by 16% for our customers over the index. Mortgage REITs . BREIT issues consistent monthly distributions since its inception. (the "Adviser"). Plus, the REIT has over 40% upside to NAV. Its a consequence of the travel restrictions due to the COVID-19 community quarantine guidelines around the world. Consider These Alternative Real Estate Investments. Blackstone also said in the prospectus it had access to $9.3 billion in "immediate liquidity.". The stock, however, is only traded over the counter in the US as well as on the Toronto Stock Exchange under the ticker symbol HOM.U. The surge in redemptions at BREIT continues to get a lot of attention. 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. What kind of REITs or property types are Blackstone likely to target with this huge war chest of available cash? Digging into Blackstone's latest real estate deal, 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. BREIT has the option to repurchase all or maybe some of the shares you request to liquidate. An Investors Perspective Into Blackstone REIT (BREIT), An Investors Perspective Into Apple Hospitality REIT, Everything You Want to Know About Armour Residential REIT, Why you Should Look into Crown Castle REITs, An Investors Perspective Into Whitestone REITs. , Blackstone will likely continue its real estate shopping spree. In 2021, BREIT raised nearly $25 billion from investors. BREIT is a Maryland corporation founded in 2015 and started operating as a non-traded REIT in 2017. This means that there is an external asset manager, in this case, Blackstone, that takes care of the management in exchange for fees. This is surely a huge factor in the discount at which BSR typically trades. . Just to give you a few examples of REITs that own similar properties as BREIT: Why would you pay a much higher valuation to invest in BREIT instead? The stock has a fifty day moving average price of $22.70 and a 200 day moving average price of $24.69. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. NEW YORK, Dec 1 (Reuters) - (This Dec. 1 story has been corrected to fix part of Snyder's quote to reference to arbitrage). BREIT had been a big growth driver for Blackstone. Blackstone Inc. is an American alternative investment management company based in New York City.Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate. I wrote this article myself, and it expresses my own opinions. Some investors are seeking liquidity to cover losses incurred elsewhere. It is a lot cheaper and offers better upside potential going forward. This year, the company has set its sights particularly on acquisitions of real estate investment trusts ("REITs"). 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. This is its first investment outside China. According to Bloomberg, that continued in January with over $5 billion in requests. One interesting aspect of this deal is that it will provide an unexpected windfall to shareholders of Public Storage(PSA 1.26%). Why the Blackstone real estate buying binge could continue, Blackstone has dominated the headlines by steadily scooping up REITs over the past year. "It's not a surprise that you would see a deceleration in flows from individual investors when you've had this kind of market decline," Gray said. Some investors are Seeking liquidity to cover losses incurred elsewhere losses incurred elsewhere for it ( other from... Paid and capital gains, if any, are shared almost all sectors, with the of! 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