March 5, 2024
BREIT Fulfills All Redemption Requests For First Time Since 2022
"BREIT fulfilled 100% of repurchase requests in February and has now provided full liquidity to all investors seeking it,” the company said in a statement Friday morning...

Dee Stribling | Bisnow National 

Blackstone Real Estate Income Trust fulfilled all of the redemption requests made by its investors in February, which totaled $961M.

This is the first month the company has been able to repay the full request amount since November 2022, when spooked investors upped their requests beyond the monthly withdrawal limit.

Redemption requests were 26% lower in February than in January and 82% off the peak for such requests, which was in January 2023, according to a letter to investors posted by the nontraded REIT.

“BREIT fulfilled 100% of repurchase requests in February and has now provided full liquidity to all investors seeking it,” the company said in a statement Friday morning, which also pointed out that the company enjoyed 11% annualized returns since its inception seven years ago.

On the other hand, BREIT recorded a 0.5% loss in 2023, its worst annual performance since its inception, meaning that it wasn’t able to earn carried interest for Blackstone executives and dealmakers for the year, according to Bloomberg.

To earn carried interest, a major part of compensation for execs, returns for the year had to be at least 5%. In 2021, BREIT returned more than 30%. But as interest rate increases and other headwinds hit real estate, BREIT’s returns dropped to 8.4% in 2022.

In January 2024, the nontraded REIT was able to fulfill 88% of the $1.3B in requests. In December 2023, BREIT received $1.1B in redemption requests and paid out $569M, or about 52%.

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