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<\/p>\nDecember 9, 2021 | James Sprow | Blue Vault<\/p>\n
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Using the 424b3 filings with the SEC, we can estimate the capital being raised by Blackstone Real Estate Income Trust. For the period October 14, 2021 through November 12, 2021, the REIT has issued 164.3 million shares, compared to 112.3 million shares issued over the previous period of September 15 through October 14. That reflects an increase of 46% from the earlier period.<\/p>\n
The REIT also provided a portfolio update in the filing, as well as an updated December 1, 2021, transaction price for the four classes of shares:<\/p>\n
Portfolio Update (from the 424b3 November 12)\u00a0<\/strong><\/p>\n For the month ended October 31, 2021, BREIT\u2019s Class I NAV per share increased $0.40, from $13.50 as of September 30, 2021, to $13.90 as of October 31, 2021.1<\/sup>\u00a0This price movement reflects broad-based increases in the value of assets, particularly among our residential, industrial and net lease properties.\u00a0<\/em><\/p>\n We have oriented BREIT\u2019s portfolio to markets and sectors where we see opportunities for outsized growth. Today, our portfolio is nearly 80% concentrated in industrial and residential, two of the best performing sectors where growth is outpacing inflation.2\u00a0<\/sup>These sectors typically have shorter duration leases which provide the opportunity to regularly adjust rents to the market, resulting in higher cash flows. In addition, increases in the cost to develop make new supply more costly and less financially feasible,\u00a0generally supporting\u00a0higher occupancies and stronger pricing power for existing assets. These dynamics are driving increased cash flows across the real estate sectors where BREIT is concentrated:\u00a0<\/em><\/p>\n a.\u00a0Residential\u00a0<\/strong>(47% of BREIT\u2019s real estate portfolio): BREIT\u2019s top residential markets are experiencing double digit multifamily rent growth.3\u00a0<\/sup><\/em><\/p>\n b.\u00a0Industrial<\/strong>\u00a0(32% of BREIT\u2019s real estate portfolio): BREIT\u2019s industrial assets are executing leases at 13% higher rents in Q3\u201921 driven by continued e-commerce growth and disrupted supply chains.4<\/sup>\u00a0<\/em><\/p>\n As a result of BREIT\u2019s thoughtful sector and market selection, we believe BREIT is well-positioned for a rising-rate, inflationary environment.\u00a0<\/em><\/p>\n In addition, we continue to identify differentiated opportunities to acquire high-quality, income-generating assets in growth markets. For example, on October 20, 2021, BREIT completed the acquisition of WPT Industrial Real Estate Investment Trust ((TSX: WIR.U; WIR.UN) (OTCQX: WPTIF) (\u201cWPT\u201d), a Canadian-listed REIT, in an all-cash transaction valued at $3.2 billion including the\u00a0assumption of debt. As part of this transaction, we acquired nearly 30 million square feet of high-quality industrial assets across the U.S in established industrial submarkets concentrated in Atlanta, Dallas, Indianapolis, L.A, Memphis,\u00a0and Minneapolis. We believe the industrial sector is benefitting from continued strong demand driven by e-commerce growth and disrupted supply chains. This transaction further orients BREIT\u2019s real estate portfolio toward the industrial sector.\u00a0<\/em><\/p>\n In addition, we currently estimate that 90% – 100% of distributions for the year ended December 31, 2021 will be characterized as return of capital for federal income tax purposes.\u00a0<\/em><\/p>\n Source: SEC\u00a0<\/em><\/p>\n <\/p>\n Using the 424b3 filings with the SEC, we can estimate the capital being raised by Blackstone Real Estate Income Trust…<\/p>\n","protected":false},"author":3464,"featured_media":24671,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[3010,2710,2964,2965],"tags":[],"class_list":["post-154346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asset-manager-news","category-blackstone","category-nav","category-performance"],"acf":[],"yoast_head":"\n![](\"https:\/\/qa.bluevaultpartners.com\/download\/news_articles\/2021\/december\/Blackstone-REIT-article-12.9.JPG\")
\nSource: Blue Vault<\/span><\/p>\n1<\/sup>\u00a0BREIT\u2019s Class S NAV per share increased from $13.51 to $13.91, BREIT\u2019s Class T NAV per share increased from $13.32 to $13.71 and BREIT\u2019s Class D NAV per share increased from $13.26 to $13.65.<\/span><\/div>\n2<\/sup>\u00a0Morningstar, FTSE Nareit Equity REITs as of October 31, 2021. Based on performance of industrial and residential public REITs YTD and since BREIT’s inception.<\/span><\/div>\n3\u00a0<\/sup>RealPage, as of September 30, 2021. Represents effective rent growth change between Q3\u201920 and Q3\u201921 for BREIT\u2019s top ten residential markets.<\/span><\/div>\n4<\/sup>\u00a0Leasing spreads reflect Q3\u201921 leasing spreads as of September 30, 2021 and compare new or renewal rent to prior rent or expiring rent, as applicable.<\/span><\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"