Philadelphia, PA, January 24, 2022 - Resource REIT, Inc. (the "REIT" or the "Company"), a publicly registered non-traded real estate investment trust, announced today that it has entered into a definitive agreement with Blackstone Real Estate Income Trust, Inc. ("BREIT"), under which BREIT will acquire all of the outstanding shares of common stock of the REIT for $14.75 per share . They both have quality management teams with significant skin in the game. . It only fulfilled about a quarter of those redemptions because it hit its 2% monthly limit. Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. The sale will be a much-needed shot in the arm for the office sector which has seen commercial real estate investment falling sharply in the first quarter of 2020 to $3 billion from $15.9 billion in the previous quarter. 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. I am not receiving compensation for it (other than from Seeking Alpha). Today, he is the author of "High Yield Landlord - the #1 ranked real estate service on Seeking Alpha. By. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Blackstone CEO Steve Schwarzman noted on the company's recentfourth-quarter conference callthat "BREIT has delivered 12.5% net returns annually since inception six years ago for its largest share class, earning over three times the public REIT index.". BREIT has 4 types of common shares which differ in how the investors will be charged. And our opportunistic funds protected capital, down only 1%, so we only performed by 16% for our customers over the index. The Vanguard Group, Inc. is currently the company's largest shareholder with 9.3% of shares outstanding. Currently, BSR trades at a particularly stark discount. Tombol ini menampilkan jenis pencarian yang dipilih saat ini. Making the world smarter, happier, and richer. Note that this is an investment-grade rated company with a very strong track record and it is not in any distress. And others could be selling at what they believe is a near-term peak in pricing for private real estate values, which have yet to see the same pricing correction as publicly traded REITs. Last week, it reached a $12.8 billion deal to acquire student housing-focusedresidential REITAmerican Campus Communities. That was . Those sectors are benefiting from long-term tailwinds and inflation. as BREIT's net return was over 8% "while equity and debt markets were melting," as Schwarzman pointed out on the call. Herbert Smith Freehills, JLL and Cushman & Wakefield advised on the sale. Certain parameters from financial statements will tell you how the company managed its investments through the ups and downs of the business cycle. I have no business relationship with any company whose stock is mentioned in this article. BREITs common stocks are priced at their fair value in terms of NAV net asset value. Even Blackstone's COO indirectly told us in the Q2 conference call that public REITs are a lot more opportunistic today: "The best opportunities today are clearly in the public markets on the screen and that's where we're spending a lot of time.". The stockholder distribution across the class shares is shown below. Blackstone claims that its REIT is superior to others. However, net losses have been incurred since 2017 which can be attributed to the real estate debt portfolio. This is surely a huge factor in the discount at which BSR typically trades. Blackstone told investors in a letter it would curb withdrawals from its REIT after it received redemption requests in November greater than 2% of its monthly net asset value and 5% of its quarterly net asset value. Excellent. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. 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. Is this happening to you frequently? It still has a lot of dry powder after its latest deal, suggesting its shopping REIT shopping spree could continue. Though the dividend yield of ~3.2% may seem low, it is actually quite high compared to the yields of its closest peers in the Sunbelt multifamily space: With over 30% upside to fair value, it would not be surprising if Blackstone at least made an attempt to buy BSR. As of their Q2 2021 report, total real estate debt investments have a fair value of $5.7B with a weighted average coupon of 5% and a weighted average maturity date of July 5, 2025. Despite the COVID-19 pandemic, BREIT achieved a 6.1% net return in 2020 for the Class S shares which has the most number of stockholders among its common shares. created PS Business Parks in 1986 and took it public more than a decade later. In addition to having passed all CFA exams, Jussi holds a BSc in Real Estate Finance from University Nrtingen-Geislingen (Germany) and a BSc in Property Management from University of South Wales (UK). In the . 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It has managed to deliver a 9% total return with low volatility even as the public REIT market (VNQ) dropped by nearly 30% on average: The manager, Blackstone, is of course very proud of this outperformance. Blackstone CEO Steve Schwarzman noted on the company's recent, that "BREIT has delivered 12.5% net returns annually since inception six years ago for its largest share class, earning over three times the public REIT index. Having invested in data centres in the US and Europe, Blackstone has eyes on Asia-Pacific - starting with India. As of July 2021, BREIT has a total of 1,508 real estate properties in the . In 2021, BREIT raised nearly $25 billion from investors. For the first half of 2021, the NAV price soared high with Class S shares at the top values at $12.92/share (July 2021). Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers. This is a much better management structure because the management is hired as employees of the REIT. More investors are entrusting it with more of their capital, giving it the funds to acquire more real estate. While they will be a headwind for Blackstone's growth in the near term as the company works through its backlog, they aren't due to any issues with that investment vehicle. That suggests it could make more headline-grabbing deals this year. Image courtesy of Bluerock Residential Growth REIT. Click here to learn more!. Blackstone REIT agreed to buy all of the outstanding shares of Preferred Apartment Communities for $25.00 each, and once the transaction closes, the REIT's common stock will no longer be listed on the New York Stock Exchange. This covers BREITs direct property investments, equity in public and private real estate-related companies, and unconsolidated investments. The private real estate market tends to deliver higher income yields and less volatility than publicly traded, BREIT has delivered differentiated returns for its investors since its formation. 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. Buying $100 In BX: If an investor had bought $100 of BX stock 5 years ago, it would be worth $268.05 today based on a price of . They are also open to venturing into healthcare and data center sectors. Managing more than $975 billion, the company invests money for wealthy . Their corporate headquarters is located at 345 Park Avenue, New York. Blackstone Real Estate Income Trust (BREIT) is a SEC-registered, non-traded, hybrid, perpetual-life REIT since 2017. And Blackstone's financial capacity to continue scooping up undervalued REITs is massive. This means you can buy real estate at 50 cents on the dollar through the public market. The REIT is marketed to wealthy individual investors. We're currently running a sale at my private investing ideas service, High Yield Landlord, where members get access to portfolios, market alerts, real-time chat, and more. . Each type of share has a par value of $0.01. "The impact on Blackstone depends on whether the REIT is able to stabilize its net asset value over time, or is forced to enter an extended run-off scenario, with significant asset sales and ongoing redemption backlog too early to tell, in our view," BMO Capital Markets analysts wrote in a note. Matthew DiLallo has positions in Blackstone and has the following options: short June 2023 $60 puts on Blackstone. He has authored award-winning academic papers on REIT investing, been featured on numerous financial media outlets, has over 50,000 followers on SeekingAlpha, and built relationships with many top REIT executives. If I owned BREIT, I would try to get out of it to invest in public REITs instead. He added that the REIT had ample cash reserves to "weather pretty much any storm." You are responsible for your own investment decisions. Information regarding Blackstone and Blackstone Real Estate is included to provide information regarding the experience of our sponsor and its affiliates. For a more comprehensive brief of BREITs real estate investment portfolio, refer to the table below. "Our business is built on performance, not fund flows, and performance is rock solid," the spokesperson said. 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. 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. ), And this is based on conservative estimates of property values. The curbs came because redemptions hit pre-set limits, rather than Blackstone setting the limits on the day. Disclosure: I/we have a beneficial long position in the shares of CORE PORTFOLIO + RETIREMENT PORTFOLIO + INTERNATIONAL PORTFOLIO either through stock ownership, options, or other derivatives. JOIN THE CONVERSATION. Blackstone Inc. agreed to buy student-housing owner American Campus Communities Inc. in a deal valuing the company at about $12.8 billion, including debt, a bet that rents will continue to rise as . This means that there is an external asset manager, in this case, Blackstone, that takes care of the management in exchange for fees. Blackstone will often claim that BREIT is superior to public REITs because it supposedly provides better diversification benefits. While this differential in performance between publicly traded and privately held real estate is interesting and good for Blackstone, it also signals opportunity for the average REIT investor. The unconsolidated investments come from their joint venture with MGM Growth Properties LLC, wherein BREIT owns 49.9% of interest. It gets paid a 1.25% of the NAV each year as well as 12.5% of the annual total return subject to a 5% hurdle. We do not believe it is a good idea to buy a REIT simply because it looks like an attractive buyout prospect for big-money asset managers and private real estate funds. Florence Chong speaks to Anil Reddy You need to be a registered user to read this content Instead of daily price fluctuations, NAV REITs have a much less volatile movement. Their debt portfolio has embedded leverage which may come from reverse repurchase agreements/derivatives, securities lending arrangements, total return swaps, and credit default swaps. The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs. The real estate group of Blackstone, Blackstone Real Estate, is our sponsor and an affiliate of BX REIT Advisors L.L.C. As an equity REIT, they have a diverse coverage of real estate investments. Jussi Askola is a former private equity real estate investor with experience working for a +$250 million investment firm in Dallas, Texas; and performing property acquisition in Germany. If we were just investing in BREIT, we would miss these opportunities to gain geographic diversification. Therefore, I continue to accumulate real estate through the public market. It is today priced at just 35 cents on the dollar due to the war in Ukraine and we think that it is very opportunistic. Cuando se ampla, se proporciona una lista de opciones de bsqueda para que los resultados coincidan con la seleccin actual. The curbs came because redemptions hit pre-set limits, rather than Blackstone setting the limits on the day. The total revenue coming from rental income also seems to increase consistently. Published - Tuesday, 20 Dec, 2022. Last but not least, since REITs are today priced at large discounts to fair value, they also pay a higher yield and offer a lot greater upside potential. Is now still a better time to invest in BREIT, or should you rather consider public REITs? All of these are made possible through sponsorship from the Real Estate Group of The Blackstone Group, Inc. with decades of real estate experience. Just a month after, it grew to 1,508 properties. Blackstone has outperformed the market over the past 15 years by 5.0% annually. Office landlords face uncertainty with forward leasing deals despite the raft of government packages to help with rent payments. See here for a complete list of exchanges and delays. And the company isn't obligated to make any repurchases, so it could choose to buy back even fewer shares than the limit or none at all. I think that the risk-to-reward of these discounted public REITs are far better. Those returns will eventually draw more investors to BREIT. Focusing on the common shares, BREIT has a total of 112,104 holders across the 4 types of class shares as of March 17, 2021. Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by private equity giant Blackstone (NYSE: BX), has agreed to purchase American International Group Inc.'s (NYSE: AIG) interests in a U.S. affordable housing portfolio for approximately $5.1 billion, in an all-cash . Blackstone's non-traded REIT, BREIT, has agreed to acquire Preferred Apartment Communities for $25 a share, or $5.8 billion. In fact, Blackstone is close to finalizing what could be the biggest traditional private-equity real estate investment fund in history, according to the Wall Street Journal. Blackstone is the 1000-pound gorilla in any real estate room. Jika diperluas, akan tampil daftar opsi pencarian yang akan mengganti input pencarian agar sesuai dengan pilihan saat ini. That left it with $36.3 billion of dry powder. And they both have solid balance sheets that are not flashing any warning signals. If you have an ad-blocker enabled you may be blocked from proceeding. That's a 39% premium to its stock price on Feb. 9, when news broke that .
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