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. Though the dividend yield of ~3.2% may seem low, it is actually quite high compared to the yields of its closest peers in the Sunbelt multifamily space: With over 30% upside to fair value, it would not be surprising if Blackstone at least made an attempt to buy BSR. Is now still a better time to invest in BREIT, or should you rather consider public REITs? As of July 2021, BREIT has a total of 1,508 real estate properties in the residential, industrial, net lease, self-storage, hotel/hospitality, retail, and office sectors located across the U.S. BREITs occupancy rates are all above 90% for almost all sectors, with the exemption of the hotels/hospitality sector which was heavily affected by the COVID-19 pandemic. Both share classes can be bought through fee-based programs, registered investment advisors, institutional and fiduciary accounts. 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. EmeryTech Office (CA) & Coleman Highline Office. The asset manager partners with big money players like pension funds and insurance companies to provide strong returns and steady income. Were sorry, this feature is currently unavailable. The company reports its financial statements and regular updates through SEC filings for public reference. Blackstone Group (BX 1.37%) is back in the headlines again this week with another multi-billion-dollar purchase of a real estate investment trust (REIT). This is a big draw for investor interest in 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. Blackstone is also active in credit, infrastructure, hedge funds, insurance, secondaries, and growth . 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). CRE Herald. NAV REITs do away with daily price fluctuations, making them less volatile compared to traded REITs. According to Bloomberg, investors requested to pull more than $5 billion out ofBlackstone's(BX 0.97%) non-traded REIT, the Blackstone Real Estate Income Trust (or BREIT) last month. They always want to grow because it maximizes the fees that they own. Dividends are paid and capital gains, if any, are shared. US private equity giant Blackstone Group has defied market jitters and pulled off a mega sale of an office tower above the Westfield mall in Sydney's CBD to Hong Kong-based Link REIT for $683 . 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. Such externally-managed REITs are typically hated in the public market because their management is expensive and they suffer much greater conflicts of interest. 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. Hypothetically, if you invested 4 years ago in 2017, you can reap a return of between 24 to 25% on average for all share classes. In addition to having passed all CFA exams, Jussi holds a BSc in Real Estate Finance from University Nrtingen-Geislingen (Germany) and a BSc in Property Management from University of South Wales (UK). As of June 30, 2021, their total properties were 1,463. To be fair, BREIT is a pretty vehicle and it has a strong track record. That, for us at High Yield Landlord, is not enough on its own. Blackstone will often claim that BREIT is superior to public REITs because it supposedly provides better diversification benefits. BREITs common stocks are priced at their fair value in terms of NAV net asset value. I wrote this article myself, and it expresses my own opinions. 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. Even if Blackstone does not acquire BSR or STAG, we think both REITs will perform well in the future. In addition, it had commitments to deploy another $9.4 billion across its public U.S. REIT privatizations and a deal to buy an Australian casino operator. I don't know many asset classes that perform -- outperform indexes by 3,000 basis points. Blackstone started seeing a flood of redemption requests late last year, exceeding its limit. 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. Those sectors are benefiting from long-term tailwinds and inflation. Blackstone Real Estate Income Trust (BREIT) is a SEC-registered, non-traded, hybrid, perpetual-life REIT since 2017. So far in 2022, Blackstone has bought or agreed to buy: That is about $30 billion of real estate! And the company isn't obligated to make any repurchases, so it could choose to buy back even fewer shares than the limit or none at all. ", stunning outperformance continued last year. Were working to restore it. At times, they might not even repurchase at all when you need the money urgently. 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. Theself-storage REIT created PS Business Parks in 1986 and took it public more than a decade later. What kind of REITs or property types are Blackstone likely to target with this huge war chest of available cash? In the . Information regarding Blackstone and Blackstone Real Estate is included to provide information regarding the experience of our sponsor and its affiliates. Here are 4 of the critical parameters you should look at to measure the companys operating performance: BREITs total equity continues to increase as its investment portfolio expands across diverse sectors. The chart below shows the YTD performance of all class share classes, plus the since inception date returns. Nexus Select Trust has a portfolio of 17 operational shopping malls . 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. The asset manager is buying so aggressively because REIT valuations are significantly below the private market valuations of their real estate. Image courtesy of Bluerock Residential Growth REIT. BREITs common stocks are priced at their fair value in terms of NAV net asset value. So far, its highest total net distribution (includes deductions of corresponding fees already) was Class I shares in FY 2019. Clearly, as the Vanguard Real Estate Index (VNQ) has sold off along with the broader market this year, Blackstone believes that there is ample value to be found in REITs. He added that the REIT had ample cash reserves to "weather pretty much any storm." The price history tells you how the company is valued at face value. The sale was part of Blackstone's acquisition of the Scentre Group office portfolio in August 2019 and Link's financing was completed late last week. The national CBD office market vacancy rate increased by 0.1 percentage point from 8.3 per cent to 8.4 per cent in three months ending March 31. Public REITs, on the other hand, trade at a >6% dividend yield in many cases with lower payout ratios, and also offer significant upside potential since they are priced at large discounts to their net asset value. Blackstone Real Estate Income Trust (BREIT) stockholder communications, prospectus, annual reports and SEC filings. Global investment firm Blackstone-sponsored Nexus Select Trust has filed the draft paper with market regulator Sebi to launch India's first public issue of retail REIT to raise around US$ 500 million (about Rs 4,000 crore), sources said. The unconsolidated investments come from their joint venture with MGM Growth Properties LLC, wherein BREIT owns 49.9% of interest. Per maggiori informazioni sulle modalit di utilizzo dei dati, consulta la nostra Informativa sulla privacy e lInformativa sui cookie. This limits your ability to get in and out of the real estate market, increasing risks, and potentially also limiting your ability to act on new investment opportunities. The stockholder distribution across the class shares is shown below. Raven Select Service Portfolio, Hyatt Regency Atlanta (GA), JW Marriott San Antonio Hill Resort (TX), etc. 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. By 2030, the institutions may hold some 7.6 million homes, or more than 40% of all single-family rentals on the market, according to the 2022 forecast by MetLife Investment Management. By Milana Vinn. As stable becomes sexy in Asia's real estate markets, Blackstone is teaming up with the family controlling the sponsor of a Singapore-listed REIT for a S$700.3 million ($524.5 million) offer to buy out the industrial real estate trust. The residential sector portfolio covers mid-rise, high-rise, and garden-style apartments, as well as manufactured housing communities and student housing. BREIT outsources third-party pricing service providers to determine the fair value for these debt investments. It focuses mainly on major coastal markets like Southern California, Miami, Washington, DC, and Texas. The 2 main distinctions of REITs in terms of how they earn income are equity and mortgage REITs. STAG offers an attractive, 4.7% dividend yield with a payout ratio slightly below 70%. course argue that BREIT is the better investment opportunity because BREIT is uniquely attractive for a number of reasons: 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. This was followed by the Class I shares, Class D shares, and then the Class T shares. This covers BREITs direct property investments, equity in public and private real estate-related companies, and unconsolidated investments. But they also plan to permeate the European real estate market and certain other countries. Excellent. Blackstone claims that its REIT is superior to others. 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. 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