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. For example, Blackstone provides the option to repurchase shares from investors once a month. Select REIT Total Return Index (.DWRTFT) 22.19% decline over the same period. On Thursday, the firm said the REIT had agreed to sell its 49.9% interest in two Las Vegas casinos for $1.27 billion. Price as of February 28, 2023, 4:00 p.m. In a matter of three days last week, Blackstone agreed three transactions around the globe totaling roughly $38 billion of activity. According to their 2020 annual report, they hold 1,370 real estate properties and 228 positions in real estate debt investments. Class S shares were the first issued common stock of BREIT in 2017 at $10. Clicca su Gestisci impostazioni per maggiori informazioni e per gestire le tue scelte. *Average returns of all recommendations since inception. Blackstone Group(BX 0.97%) is back in the headlines again this week with another multi-billion-dollar purchase of a real estate investment trust (REIT). Blackstone Group has been on an aggressive REIT buying spree in the last few years. 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? A real estate private equity firm with over 20 years of successful performance, are currently looking to add a Property Accountant to their team. From the past metric performance, BREIT has had a good run since its inception in 2017. Deutsche Bank analyst Carlo Santarelli was sufficiently impressed with the fourth-quarter numbers from two casino-oriented real estate investment trusts (REITs) that he reiterated "Buy" ratings on each. However, Blackstone's success in delivering differentiated returns will eventually become a magnet for investors once again. Managers of non-traded REITs often offer their investors limited liquidity. For a more comprehensive brief of BREITs real estate investment portfolio, refer to the table below. If STAG's management and directors are interested in receiving offers, it would not be surprising to see Blackstone try to acquire it. You can buy or sell with minimal fees with just a few clicks of mouse. However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. JOIN THE CONVERSATION. 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 . Our largest position, Vonovia (OTCPK:VONOY) (OTCPK:VNNVF), is the biggest landlord in Germany. Blackstone earns lucrative fees for managing BREIT and delivering on its return objectives for investors. The company reports its financial statements and regular updates through SEC filings for public reference. Jika diperluas, akan tampil daftar opsi pencarian yang akan mengganti input pencarian agar sesuai dengan pilihan saat ini. Is this happening to you frequently? Is It a Buy Right Now? 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. I think that it is inferior and yet it is a lot more expensive. Public REITs are liquid and naturally, this will result in some volatility, but at least, you are not lying to yourself, thinking that something isn't volatile just because it isn't traded. Blackstone President Jon Gray received $479.2 million as income in 2022. 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). Jussi is also the President of Leonberg Capital - a value-oriented investment boutique specializing in mispriced real estate securities often trading at high discounts to NAV and excessive yields. This time it's buying PS Business Parks . Join us for a 2-week free trial and get access to all my highest conviction investment ideas. 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 . Invest better with The Motley Fool. It invests in real estate properties across 8 sectors and real estate debt through mortgage-backed securities and other real estate-related loans. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. To liquidate their assets, BREIT must repurchase their shares, which is not guaranteed. Under the terms of the agreement, B REIT will acquire the REIT 's portfolio of multifamily, garden-style assets comprised of 42 apartment communities totaling more than 12,600 units. 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. Learn More. Blackstone is the 1000-pound gorilla in any real estate room. Published - Tuesday, 20 Dec, 2022. That, for us at High Yield Landlord, is not enough on its own. Blackstone Makes $524.5M Buyout Offer for Singapore's Soilbuild REIT. I am not receiving compensation for it (other than from Seeking Alpha). Blackstone continues making major deals across the multifamily sector by planning to acquire Bluerock Residential Growth REIT in an all-cash . Using different valuation methods, real estate services firm Jones Lang LaSalle (JLL) recently posited that REITs' discount to NAV is over 15%, commenting that a "sustained dislocation in public and private values could be a precursor of opportunities for fundamentals driven private market participants, leading to take-private M&A.". . Become a Passive Landlord with our 8% Yielding Real Estate Portfolio. Click here to learn more!. Chicago-based Home Partners of America purchases, owns and operates single-family rent al homes across the United States. -. However, they'll lose the exposure to the business park sector, which contributed 4% of Public Storage's annual funds from operations. The majority of investors redeeming were from Asia and needed the liquidity, they said. As of FY 2020, each common stock class received a gross distribution of $0.6354 per share. That's one of, Join Over Half a Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. Blackstone Mortgage Trust is not owned by hedge funds. Matthew DiLallo owns Public Storage. Schwarzman took home more than $1.27 . 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. The index is down 17%, we were up 2.3%. For instance, in the first quarter of this year, cash same-store net operating income grew 4.8%, while the REIT has guided for same-store NOI to grow 4-5% for the full year. Were working to restore it. Their recent investments are, namely, in residential, industrial, net lease, hospitality (leisure market), self-storage, retail, and office. 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. LONDON (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. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Overall, investors have handed Blackstone $83.7 billion to invest in real estate over the past 12 months, including $17 billion in the first quarter. Yahoo fa parte della famiglia di brand di Yahoo. Invest better with The Motley Fool. Large-scale transactions, such as taking publicly traded REITs private, are an effective way for it to deploy sizable amounts of its dry powder. Contrary to traded REITs, BREIT invests in perpetual-life REITs wherein NAV prices are valued daily or monthly with a limited liquidity period. Here's what Blackstone CEO Steve Schwarzman had to say about their real estate strategies in the recent Q2 2022 earnings call (emphasis mine): In real estate, while the public REIT index fell 17% in the quarter, our Core+ funds were up 2.3%. Funds controlled by Stephen . BREIT also has real estate debt investments through securities and loans backed by the U.S. market. That was almost 70% of all the capital raised by non-traded REITs that year. And apparently this is the new target. *Average returns of all recommendations since inception. The Motley Fool has a disclosure policy. Mortgage REITs . Blackstone Inc limited withdrawals from its $69 billion unlisted real estate income trust (REIT) on Thursday after a surge in redemption requests, an unprecedented blow to a franchise that helped it turn into an asset management behemoth. Blackstone is a premier global investment manager. 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 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. So far in 2022, Blackstone has bought or agreed to buy: Preferred Apartment . As of July 2021, BREIT has a total of 1,508 real estate properties located across the U.S. and a small percent in Europe. STAG is a ~$10 billion enterprise value industrial REIT specializing in higher yielding, single-tenant net leased properties largely in secondary and tertiary markets. Does the Stock Market Have You Down? For example, from the beginning of the year through June, STAG has acquired $271 million of properties at a 5% cap rate while selling $36 million of properties at a 4.4% cap rate. Blackstone's purchase of American Campus makes student housing a fully privately held asset class in the US. 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 . Residential, specifically multi-family homes, bring the most rental revenue to BREITs portfolio, followed by the industrial sector. Blackstone Inc. will purchase PS Business Parks, Inc. (NYSE:PSB) in an all-cash deal valued at approximately $7.6 billion, the two companies announced April 25. 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