Blackstone Real Estate Income Trust recorded $496.7 million in impairment charges during the third quarter, up from $27.4 million a year earlier. The charges covered 13 rental housing properties, one office building, and single-family rentals, plus $43 million in write-downs for assets held for sale. BREIT did not disclose which properties triggered the impairments. Despite the charges, the nontraded REIT posted a 2% return for the quarter and 7.3% year-to-date, with subscriptions up roughly 40% from last year.

BREIT deployed $3.4 billion into preleased data center developments through QTS in the third quarter, bringing its 2024 investment in the sector to approximately $9 billion. The fund now holds a 34.8% stake in QTS, the data center operator Blackstone took private in 2021. Data centers now represent 29% of BREIT’s real estate value, exceeding its 20% industrial allocation and 17% multifamily weighting. The fund sold $7 billion in noncore assets this year, including its remaining self-storage and manufactured housing portfolios.

BREIT sold 65 rental housing properties, nine industrial assets, and one office building in the quarter for $2 billion, generating a $366.1 million realized gain that partially offset the impairment charges. Total assets under management declined from $98.6 billion at year-end 2023 to $88.9 billion at the end of September. Since inception, BREIT has delivered a 9.3% annualized net return, about 55% higher than publicly traded REITs. Management attributed its optimism to constrained supply across property sectors, arguing that portfolios built on cash flow growth can perform even as rates remain elevated.

Bisnow

BREIT Takes $500M Hit Even As It Posts Q3 Returns

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