Blackstone Funds Take a Hit in the Wake of the Coronavirus Outbreak

April 23, 2020 | Madeleine Farman | S&P Global Market Intelligence

The Blackstone Group Inc.’s funds have taken a hit in the first quarter of 2020 as industries and businesses across the board battle with the fallout from the coronavirus pandemic.

Blackstone Real Estate Partners funds depreciated 8.8% in the first quarter, while its core-plus funds, including Blackstone Real Estate Income Trust, depreciated 3.9%, the firm’s CFO Michael Chae said during the firm’s first-quarter earnings call.

Investments in the hotel and retail sectors are the most directly impacted by the outbreak of COVID-19 and the firm saw “meaningful markdowns” to investments in those areas, which comprise approximately 15% of the firm’s global real estate portfolio, Chae said.

However, Chae said the firm’s thematic investing in real estate means its portfolio is well positioned to weather the fallout of the pandemic. Approximately 80% of its real estate portfolio comprises “logistics, high-quality office and residential assets — logistics being the most dominant theme,” he added.

Source:  S&P Global Market Intelligence