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  • Writer's pictureRealFacts Editorial Team

Blackstone REIT Exceeds Quarterly Withdrawal Limit as Repurchase Requests Surge

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Blackstone's Real Estate Income Trust (BREIT) has decided to honor all repurchase requests made in June, even though these demands have pushed the fund over its quarterly withdrawal limit. This marks the third time in four months that BREIT has exceeded its repurchase limits, which allow for 2% of net asset value (NAV) monthly and 5% quarterly.

In June, investors sought to withdraw $806 million, amounting to approximately 1.4% of BREIT’s monthly NAV and pushing the second-quarter NAV past the 5% threshold. Despite this surge, BREIT has managed to meet all repurchase requests in full since February, demonstrating a strong commitment to investor satisfaction.

The spike in withdrawal requests at the end of May was largely attributed to another non-traded REIT imposing stricter limits on monthly repurchases, which led to shaken investor confidence across the sector. Many speculated that Starwood Real Estate Income Trust was the fund in question, as it announced a reduction in its monthly limit from 2% to 0.33%.

BREIT began enforcing its repurchase limits in November 2022 in response to rising interest rates, which had led to a wave of withdrawal requests from investors seeking to safeguard their capital. Despite posting a 0.5% loss in June—its worst annual performance since inception—the fund had a robust start to 2024, with returns exceeding 1.8% in the first quarter. BREIT continues to aim for consistent and attractive distributions for its investors.

For investors, BREIT's ability to fulfill repurchase requests amid market volatility is a significant indicator of the fund’s liquidity management and commitment to investor confidence. While the increase in withdrawal requests highlights some investor concerns, BREIT’s overall performance and proactive approach suggest a resilient investment strategy in the face of broader market challenges.


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