{"id":1451213,"date":"2024-01-17T12:45:00","date_gmt":"2024-01-17T17:45:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1451213"},"modified":"2024-01-17T12:45:00","modified_gmt":"2024-01-17T17:45:00","slug":"blackstones-flagship-breit-records-worst-annual-performance-since-inception","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/blackstones-flagship-breit-records-worst-annual-performance-since-inception\/1451213\/","title":{"rendered":"Blackstone’s Flagship BREIT Records Worst Annual Performance Since Inception"},"content":{"rendered":"

Blackstone’s Flagship BREIT Records Worst Annual Performance Since Inception<\/span><\/p>\n

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The Blackstone Real Estate Income Trust (BREIT) recorded its lowest annual return since its inception in 2017, with a .5% loss in 2023. This shows that Blackstone’s flagship real estate trust for high-net wealth investors was not immune to the Federal Reserve’s interest rate hiking cycle and a commercial real estate downturn.\u00a0<\/p>\n

In a\u00a0recent shareholder update<\/a>, Blackstone told investors, “We built BREIT as an all-weather strategy designed to build long-term wealth across market cycles. We are pleased that BREIT has delivered an 11% annualized net return since inception seven years ago (January 1, 2017).”\u00a0<\/p>\n

<\/a><\/p>\n

Nonetheless, the past year’s sharp increase in interest rates, regional bank meltdowns, and a downturn in the commercial real estate market have ended that era (for now). This shift led to a slight loss (.5%) last year, following returns of 8.4% in 2022 and over 30% in 2021.<\/p>\n

BREIT’s performance also severely lagged behind 26% returns of the S&P500. The fund’s net asset value is around $62 billion.\u00a0<\/p>\n

Meanwhile, Blackstone has limited investor redemption requests for more than a year. It has returned $14.3 billion of investor cash since November 30, 2022, according to a shareholder letter earlier this month. The good news is that a backlog in\u00a0redemption requests<\/a>\u00a0has been easing recently.\u00a0<\/p>\n

Bloomberg<\/a>\u00a0noted, “Blackstone had enlisted interest-rate hedges to mitigate the pain from soaring borrowing costs. The firm said in a memo that even if there might be some immediate sting, sustained lower rates will lift real estate values across the fund’s portfolio.”\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nWed, 01\/17\/2024 – 07:45<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Blackstone’s Flagship BREIT Records Worst Annual Performance Since Inception The Blackstone Real Estate Income Trust (BREIT) recorded its lowest annual return since its inception in…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1451213","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-65wF","jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1451213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1451213"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1451213\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1451213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1451213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1451213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}