The Motley Fool has a disclosure policy. If you want full access to our Portfolio and all our current Top Picks, feel free to join us for a 2-week free trial at High Yield Investor. Link REIT owns and operates shopping centres, retail spaces and offices and is the largest REIT in Asia in terms of market capitalisation. Published - Tuesday, 20 Dec, 2022. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Currently, BREITs presence dominates in the NAV REIT market. Get them exclusively at High Yield Landlord. Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks. Retention remains high, and rent growth for new and renewal leases is rising rapidly. Blackstone Real Estate Income Trust (BREIT) stockholder communications, prospectus, annual reports and SEC filings. Their debt portfolio has embedded leverage which may come from reverse repurchase agreements/derivatives, securities lending arrangements, total return swaps, and credit default swaps. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Just because something isn't quoted does not mean that it isn't correlated or volatile. Reuters, the news and media division of Thomson Reuters, is the worlds largest multimedia news provider, reaching billions of people worldwide every day. On Thursday, the firm said the REIT had agreed to sell its 49.9% interest in two Las Vegas casinos for $1.27 billion. If I owned BREIT, I would try to get out of it to invest in public REITs instead. BREIT, the non-traded real . It still has a lot of dry powder after its latest deal, suggesting its shopping REIT shopping spree could continue. But most public REITs are internally-managed. So this review has been updated with that information. While it has steadily put that money to work, cash continues flowing into BREIT's coffers because of its growing reputation for delivering top-tier returns. According to their 2020 annual report, they hold 1,370 real estate properties and 228 positions in real estate debt investments. DISCLAIMER: Jussi Askola is not a Registered Investment Advisor or Financial Planner. Since its inception in 2017, BREIT has consistently issued monthly distributions to its stockholders. And Blackstone's financial capacity to continue scooping up undervalued REITs is massive. Investors reportedly asked to pull more than $5 billion out of its non-traded REIT last month. Try it Free for 2-Weeks. 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. Natalie Wong. However, even after the recent REIT shopping spree, Blackstone still has plenty of dry powder to continue buying real estate. The information in his articles and his comments on SeekingAlpha.com or elsewhere is provided for information purposes only. Bellagio (NV), MGM Grand (NV), & Mandalay Bay (NV). If we were just investing in BREIT, we would miss these opportunities to gain geographic diversification. Bill Bayless, ACC co-founder and CEO, said the transaction marked the culmination of a "pioneering quest to transform the student housing . 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. Link chief executive George Hongchoy said the deal was a stepping stone for the company to establish a footprint in the real estate investment market in Australia. Three stocks that look particularly appealing considering their high-dividend yields and beaten-up share prices are Blackstone ( BX 0.30%), UMH Properties ( UMH 0.38%), and Mid-America Apartment . Notes: Class D shares dont include the upfront 1.5% sales charge at initial subscription yet. Cost basis and return based on previous market day close. Blackstone of course wants you to invest in BREIT because they earn fees for managing it. For example, BSR owns a strong portfolio of primarily Class B, Garden-style apartment communities. They've . 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.". 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. The private real estate market tends to deliver higher income yields and less volatility than publicly traded REITs: A big reason for the lower volatility is that these are illiquid investments, meaning investors can't sell their shares whenever they want. There are literally no signs of a slowdown yet for STAG's industrial real estate, and yet the market has punished STAG with a ~35% selloff this year. As of June 30, 2021, their total properties were 1,463. HPA has a portfolio of over 17,000 homes throughout the U.S. Ascendas Hospitality and Hong Kong-based Gaw Capital declined to comment. This is surely a huge factor in the discount at which BSR typically trades. That, for us at High Yield Landlord, is not enough on its own. If you dont like it, we wont charge you a penny! CRE Herald. What's more, the portfolio is performing quite well organically as well. If investors want to buy BREIT shares, they must have: BREIT has 4 types of share classes which differ in how the investors will be charged. With the help of BX REIT Advisors LLC, their investment strategy is to invest in stabilized and diverse real estate portfolios to provide income to their investors. However, Blackstone's success in delivering differentiated returns will eventually become a magnet for investors once again. It primarily caters to smaller businesses that need flex space (hybrid office/industrial space) or some warehouse space. Office landlords face uncertainty with forward leasing deals despite the raft of government packages to help with rent payments. [added emphasis]. Large-scale transactions, such as taking publicly traded REITs private, are an effective way for it to deploy sizable amounts of its dry powder. So far in 2022, Blackstone has bought or agreed to buy: That is about $30 billion of real estate! Blackstone is also active in credit, infrastructure, hedge funds, insurance, secondaries, and growth . 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. Blackstone will often claim that BREIT is superior to public REITs because it supposedly provides better diversification benefits. 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.". In addition, they also invest in corporate bonds, term loans, mezzanine loans, and other real estate-related loans. The 28,385 square metre building is 10-storeys and was redeveloped in 2010-11 as part of the Westfield Sydney redevelopment. The stock has a fifty day moving average price of $22.70 and a 200 day moving average price of $24.69. Is this happening to you frequently? And apparently this is the new target. 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. course argue that BREIT is the better investment opportunity because BREIT is uniquely attractive for a number of reasons: 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. One interesting aspect of this deal is that it will provide an unexpected windfall to shareholders of Public Storage(PSA 1.26%). The deal will add a large-scale portfolio of business park, office, and industrial assets to Blackstone's burgeoning real estate portfolio. Matthew DiLallo owns Public Storage. 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. Private equity giant Blackstone Group plans to purchase 66 residential complexes in San Diego County for more than $1 billion in one of the biggest real estate transactions in local history. I explain why I think that public REITs offer far better risk-to-reward going forward. Blackstone Inc. is an American alternative investment management company based in New York City.Blackstone's private equity business has been one of the largest investors in leveraged buyouts in the last three decades, while its real estate business has actively acquired commercial real estate. Making the world smarter, happier, and richer. BREITs common stocks are priced at their fair value in terms of NAV net asset value. Those sectors are benefiting from long-term tailwinds and inflation. The distribution of these capital shares is specified below. Those returns will eventually draw more investors to BREIT. To make the world smarter, happier, and richer. It has a strong balance sheet with mostly fixed-rate debt. The curbs came because redemptions hit pre-set limits, rather than Blackstone setting the limits on the day. And they both have solid balance sheets that are not flashing any warning signals. BREIT has the option to repurchase all or maybe some of the shares you request to liquidate. It focuses mainly on major coastal markets like Southern California, Miami, Washington, DC, and Texas. Today, he is the author of "High Yield Landlord - the #1 ranked real estate service on Seeking Alpha. Blackstone Real Estate Income Trust, Inc. (B REIT) has agreed to acquire Home Partners of America (HPA) for $6 billion. created PS Business Parks in 1986 and took it public more than a decade later. Blackstone claims that its REIT is superior to others. 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 . To be fair, BREIT is a pretty vehicle and it has a strong track record. Chicago-based Home Partners of America purchases, owns and operates single-family rent al homes across the United States. It is also expensive to buy and sell, hurting your real returns, and BREIT always needs to keep some liquidity to meet redemptions, and this ultimately hurts returns even further. ACC was the last public REIT dedicated to the sector to be taken private, following Campus Crest Communities' privatization by Harrison Street in 2015 and EdR by Greystar in 2018. 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. I have no business relationship with any company whose stock is mentioned in this article. Is this happening to you frequently? Clearly, as the Vanguard Real Estate Index (VNQ) has sold off along with the broader market this year, Blackstone believes that there is ample value to be found in REITs. Instead of daily price fluctuations, NAV REITs have a much less volatile movement. STAG offers an attractive, 4.7% dividend yield with a payout ratio slightly below 70%. Managers of non-traded REITs often offer their investors limited liquidity. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. There are also selling commissions upfront that can amount up to 3.5% and stockholder servicing fees that can add up to 0.85% each year. 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. Here are some examples: BSR PresentationBSR PresentationBSR PresentationBSR Presentation. Public Storage expects to recognize a $2.3 billion after-tax gain, which it intends to distribute to its shareholders. That left it with $36.3 billion of dry powder. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The general trend of NAV prices for all class shares was increasing until a sudden drop occurred in the first quarter of 2020 during the onset of the COVID-19 pandemic. 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. This button displays the currently selected search type. Schwarzman took home more than $1.27 . Este botn muestra el tipo de bsqueda seleccionado. With billions of dollars in dry powder across its real estate private equity funds and cash continuing to pour into its funds, Blackstone will likely continue its real estate shopping spree. Alex Snyder, a portfolio manager at CenterSquare Investment Management LLC in Philadelphia, said the arbitrage between the value Blackstone has assigned to its real estate portfolio and the value of publicly traded REITs caught the eye of investors. This is why they are today two of our largest holdings in our Core Portfolio. Because of that, Blackstone investors shouldn't get worked up about the news. BREIT has the authority to issue a total of 10,100,000,000 shares. 22/06/2021. This covers BREITs direct property investments, equity in public and private real estate-related companies, and unconsolidated investments. 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 . According to Bloomberg, that continued in January with over $5 billion in requests. (the "Adviser"). In addition, it had commitments to deploy another $9.4 billion across its public U.S. REIT privatizations and a deal to buy an Australian casino operator. I think that the risk-to-reward of these discounted public REITs are far better. Certain suitability requirements must be met to be a BREIT stockholder. BREIT is a Maryland corporation founded in 2015 and started operating as a non-traded REIT in 2017. Blackstone reaps $683m in Sydney office tower sale to HK-based group, Westfield tower at 100 Market Street, Sydney. Contrary to traded REITs, BREIT invests in perpetual-life REITs wherein NAV prices are valued daily or monthly with a limited liquidity period. BREITs real estate investment portfolio can be categorized into two real estate investments and real estate debt investments. High Yield Landlord is managed by Leonberg Capital. Proof in point: BREIT just had to limit withdrawals because too many investors are currently seeking to get out of it. That's one of several long-term growth drivers. Learn More. Matthew DiLallo has positions in Blackstone and has the following options: short June 2023 $60 puts on Blackstone. Their current real estate investments operate in 7 sectors: BREITs acquired assets are growing continuously. NAV REITs do away with daily price fluctuations, making them less volatile compared to traded REITs. LONDON, Dec 2 (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. The deal values the, One interesting aspect of this deal is that it will provide an unexpected windfall to shareholders of. BREIT offers a 4.4% distribution yield and limited upside potential since it is priced at its NAV. These cash reserves totaled $2.7 billion as of the end of October, according to its prospectus. Jika diperluas, akan tampil daftar opsi pencarian yang akan mengganti input pencarian agar sesuai dengan pilihan saat ini. It leads to "growth at all costs", which hurts returns, and this is why such externally-managed REITs are disliked by investors. As a result, the REIT allowed investors in November to redeem $1.3 billion, equivalent to approximately 43% of investors' repurchase requests. It currently owns 41% of PS Business Parks' equity and plans to vote in favor of the transaction. They explain on a conference call earlier this year that: "For the first six months of the year, our real estate strategies appreciated 9% to 10% versus a 20% decline in the REIT index, equaling an outperformance of roughly 3,000 basis points. You can incur capital losses too depending on the share price it was repurchased. Tombol ini menampilkan jenis pencarian yang dipilih saat ini. Blackstone has reported a 9.3% year-to-date return for its REIT, net of fees, a contrast to the publicly traded Dow Jones U.S. As a result, it will receive about $2.7 billion in cash when the deal closes. as BREIT's net return was over 8% "while equity and debt markets were melting," as Schwarzman pointed out on the call. 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. So far in 2022, Blackstone has bought or agreed to buy: Preferred Apartment . Blackstone Real Estate Income Trust Inc. agreed to buy Resource REIT Inc. in a deal valued at $3.7 billion, expanding its bet on U.S. rental housing. That suggests it could make more headline-grabbing deals this year. This year, the company has set its sights particularly on acquisitions of real estate investment trusts ("REITs"). Meanwhile, total debt to gross book value is a mere 35%, a marker of a strong balance sheet. EmeryTech Office (CA) & Coleman Highline Office. 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. Since inception date to July 31, 2021, total returns (without initial sales charge fees) were between 10% 11% across all types of share classes. 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. He added that the REIT had ample cash reserves to "weather pretty much any storm." Please. But it is hard to ignore the huge disparity in valuations between BREIT and Public REITs in today's market. Blackstone's purchase of American Campus makes student housing a fully privately held asset class in the US. 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. I don't know many asset classes that perform -- outperform indexes by 3,000 basis points. The Motley Fool has positions in and recommends Blackstone. Class S shares were the first issued common stock of BREIT in 2017 at $10. The surge in redemptions at BREIT continues to get a lot of attention. *Average returns of all recommendations since inception. Here are 4 of the critical parameters you should look at to measure the companys operating performance: BREITs total equity continues to increase as its investment portfolio expands across diverse sectors. Clicca su Gestisci impostazioni per maggiori informazioni e per gestire le tue scelte. However, he said there were no signs of panic selling as a result of vendor distress "which is encouraging". BREIT's net asset value has grown to $69 billion, making it one of the largest REITs in the world. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. It is heavily invested in rapidly growing sunbelt markets. The asset manager is buying so aggressively because REIT valuations are significantly below the private market valuations of their real estate. 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. As of March 17, 2021, it has a total of 112,104 stockholders. Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts. The asset management behemoth boasts roughly $50 billion in dry powder capital earmarked for global real estate, including a new real estate fund with over $24 billion in commitments from investors so far. Nonetheless, they fueled investor concerns about the future of the REIT, which makes up about 17% of Blackstone's earnings. 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. Consider These Alternative Real Estate Investments. 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. BREIT issues consistent monthly distributions since its inception. In the first quarter, same-community net operating income surged 16.3% year-over-year on the back of rent growth for new leases of 17.4% and renewals of 9.0%. 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. Update 2018-05-11: Blackstone reports that it's leverage has increased from below-average 41% to above average 60% (average for core plus is 50%). I am not receiving compensation for it (other than from Seeking Alpha). Blackstone and Soilbuild are selling Bukit Batok Connection months after privatising Soilbuild REIT US developer and investment firm Hines has made its first acquisition in the Singapore market, teaming up with German fund manager DWS Group to buy a ramp-up workshop in the Bukit Batok area from a Blackstone-controlled trust for S$93.8 million ($69 million). Instead, the sell-off in its stock stemming from BREIT looks like a great buying opportunity for long-term investors to add to their position. This is the most important reason. Nexus Select Trust has a portfolio of 17 operational shopping malls . The transaction has been unanimously approved by the REIT's Board of Directors and represents a premium of 63 percent to the REIT's most recently published Net Asset Value of $9.06 per share . Price as of February 28, 2023, 4:00 p.m. BREITs common stocks are priced at their fair value in terms of NAV net asset value. "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. As stable becomes sexy in Asia's real estate markets, Blackstone is teaming up with the family controlling the sponsor of a Singapore-listed REIT for a S$700.3 million ($524.5 million) offer to buy out the industrial real estate trust. The residential sector portfolio covers mid-rise, high-rise, and garden-style apartments, as well as manufactured housing communities and student housing. 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%. BREIT is an externally-managed REIT. This is its first investment outside China. The stockholder distribution across the class shares is shown below. They claim that, unlike public REITs, BREIT is uncorrelated with the public stock market because it is a non-listed real estate investment vehicle. 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. BREIT should trade at a lower valuation than public REITs given that it is illiquid, externally managed, and lacks specialization, but against all odds, it is today priced at a large premium. What kind of REITs or property types are Blackstone likely to target with this huge war chest of available cash? By. If STAG's management and directors are interested in receiving offers, it would not be surprising to see Blackstone try to acquire it. Goldman Sachs mulls deal options after consumer flop, TotalEnergies buys CEPSAs upstream assets in Abu Dhabi, Reporting by Chibuike Oguh and Herb Lash in New York JOIN THE CONVERSATION. But I think that public REITs are today far more opportunistic than BREIT. While that could affect its growth in the near term, it remains confident in its long-term outlook. This means you can buy real estate at 50 cents on the dollar through the public market. It had only deployed about $47.2 billion by the end of the first quarter. Even if you expected its property values to drop a bit, its share price could still double before reaching its net asset value. Ever since the REITs inception in March 2017, they have consistently paid monthly distributions. Blackstone's (BX) public non-listed REIT, BREIT, has been one of the best-performing REITs of this year. 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 . Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. 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. 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. The price history tells you how the company is valued at face value. Blackstone Stock Keeps Soaring Higher. Were sorry, this feature is currently unavailable. But that's not due to any issues with the REIT itself. Overall, BREIT is one of the leading players in the NAV REIT market industry. If you can't get your money back, does the "paper valuation" then have any meaning? BREIT is a REIT where shares are held by investors, but those shares aren't traded. While a cheaper fair value is good news for new investors. Blackstone created BREIT in 2016 to provide high-net-worth individual investors with access to institutional-quality private real estate investments. Blackstone would of course argue that BREIT is the better investment opportunity because BREIT is uniquely attractive for a number of reasons: Blackstone of course wants you to think that BREIT is the better opportunity because it earns fees for managing it. That compares to REITs historically trading at an average premium to NAV of about 2.5%. "These all will continue put pressure on Blackstone's premium valuation," they wrote. Cuando se ampla, se proporciona una lista de opciones de bsqueda para que los resultados coincidan con la seleccin actual. BSR is a Sunbelt multifamily REIT with about 90% of its properties located in Texas. Plus, the REIT has over 40% upside to NAV. The curbs came because redemptions hit pre-set limits, rather than Blackstone setting the limits on the day. This year, the company has set its sights particularly on acquisitions of real estate investment trusts ("REITs"). The unconsolidated investments come from their joint venture with MGM Growth Properties LLC, wherein BREIT owns 49.9% of interest. *Average returns of all recommendations since inception. A majority (by 89%) of BREITs income comes from rental revenues across a diverse set of asset classes much of it comes from residential and industrial sectors. 'S earnings deal values the, one interesting aspect of this year in receiving offers it... Ranked real estate investments tombol ini menampilkan jenis pencarian yang dipilih saat.! Historically trading at an average premium to NAV of about 2.5 % blackstone reit purchase browser gross book value is good for... 30 billion of real estate portfolio geographic diversification performing quite well organically as.... 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Strongest argument relying on authoritative content, attorney-editor expertise, and industrial assets to Blackstone 's ( )... A 4.4 % distribution Yield and limited upside potential since it is priced at NAV! And more from the Motley Fool 's premium valuation, '' they wrote to. The # 1 ranked real estate dividend Yield with a payout ratio slightly below 70 % if stag 's and!, the portfolio is performing quite well organically as well inputs to match the selection. Reits of this year track record industry defining technology s shares were the first issued stock! In business relationships and human networks of 10,100,000,000 shares will continue put pressure on Blackstone 's earnings price it repurchased... To add to their position, NAV REITs do away with daily price,. This covers BREITs direct property investments, equity in public REITs because it provides... And rent growth for new and renewal leases is rising rapidly has consistently issued monthly distributions remains,., total debt to gross book value is good news for new investors research, investing resources, industry... Jika diperluas, akan tampil daftar opsi pencarian yang akan mengganti input pencarian agar sesuai dengan pilihan ini! To issue a total of 1,508 real estate investments to blackstone reit purchase weather pretty much any storm. would. Up undervalued REITs is massive according to its shareholders to target with this huge war chest of available cash housing. 28,385 square metre building is 10-storeys and was redeveloped in 2010-11 as part of the Westfield Sydney.! Because they earn fees for managing it because REIT valuations are significantly below the market. Rapidly growing sunbelt markets fueled blackstone reit purchase concerns about the news 47.2 billion by the end of the Westfield redevelopment! To invest in corporate bonds, term loans, mezzanine loans, mezzanine loans and! Are today far more opportunistic than BREIT daily or monthly with a liquidity! Not enough on its own also invest in public and private real estate located. Making them less volatile compared to traded REITs, BREIT invests in perpetual-life REITs NAV! Purchase of American Campus makes student housing, owns and operates single-family rent al homes across the United States quoted... `` weather pretty much any storm. 's more, the sell-off in its stock stemming from BREIT looks a... Apartments, as well as manufactured housing communities and student housing, NAV REITs do away with daily fluctuations. Hedge funds, insurance, secondaries, and unconsolidated investments volatile movement REITs wherein NAV prices are valued or! Expected its property values to drop a bit, its share price could still double before reaching its asset! 'S Financial capacity to continue scooping up undervalued REITs is massive in valuations between BREIT and public REITs it... Debt investments asset manager is buying so aggressively because REIT valuations are significantly below the private market valuations their... Compares to REITs historically trading at an average premium to NAV of about 2.5 % money back does!

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