Blackstone Real Estate Income Trust
Score
2
- ClassS
- Managed byBX REIT Advisors LLC
- Release dateApril 25, 2024
- UpdatedApril 23, 2025
Net Asset Value
$53BMax. Offering Size
$60BInvestment Style
CoreHQ Location
New York, NYAmount Raised
66BLegal Construction
CorporationAsset Class
Real EstateInception
January 2017Eligibility
Non-Accredited InvestorsMin. Investment
$2,500Annualized Distribution Rate
3.9%Net Total Return
8.5%Distributions
MonthlyIncentive Fee
12.5% of Total ReturnAnnual Management Fee
1.25%Holding Period
Permanent CapitalAdvisor
BX REIT Advisors LLCDealer Manager
Blackstone Securities Partners LPAuditor
Deloitte & Touche LLPCounsel
Venable LLP, Simpson Thacher & Bartlett LLP, DLA Piper LLP (US)The Bottom Line
BREIT invests in income-producing real estate across high-growth sectors like rental housing, industrial warehouses, and data centers. It aims to provide steady income and long-term appreciation, making it a potential fit for investors seeking diversification and passive income.
But here’s the catch: BREIT’s valuation method is complex and opaque, with concerns about inflated asset values and limited liquidity. Your money could be locked up longer than you expect, and fees are higher than many public alternatives.
BREIT uses a "mark-to-model" valuation approach where Blackstone has the final say on asset values, which can lead to overvaluation. Independent analysts estimate NAV overstatements of up to 55%, meaning you might be paying fees on inflated asset values.
Your Money vs. Reality
BREIT’s 8.5% return over the last decade was solid—outpacing bonds, gold, and even most real estate funds. But the S&P 500 still left it in the dust.
$10,000 Over 10 Years (2015-2024):
Note: For the money market returns, Vanguard Federal Money Market Fund (VMFXX) has been considered. For Gold prices, London Bullion Market Association data has been used.
Key Takeaways:
- BREIT outperformed cash, Treasuries, gold, and even the broad REIT index.
- The S&P 500 still delivered much more: $8,449 more than BREIT on a $10,000 investment.
- Choosing private real estate helped—but public equities were the real growth engine over the last decade.
Fund Strategy
BREIT invests in income-producing real estate across high-growth sectors and geographies—focusing on rental housing, industrial warehouses, and data centers. It aims to provide regular income and long-term appreciation by owning and managing a diversified set of real estate assets in markets with strong demand.
Fit Check
Available to Non-Accredited Investors.
You must meet either:
Net worth of $250,000
OR
$70,000 annual income and $70,000 net worth
Ideal For:
- Investors seeking long-term passive income
- Those looking to add real estate diversification in their portfolio
Less Ideal For:
- Investors needing fast or frequent liquidity
- Those seeking high short-term returns or market-timed exits
Fast Facts
Key Concern
Reality Check
Liquidity
Monthly redemption with 5% cap
Total Fees
2.1% annual
Portfolio Focus
Rental housing, industrial, data centers
Manager Background
Blackstone with $1.3B invested
Distribution Rate
3.9% (mostly return of capital)
Pros/Bulls Say
- Low minimum access to institutional real estate
- Solid performance record and consistent income
- High exposure to fast-growing real estate segments
Cons/Bears Say
- Opaque Valuations: Blackstone decides what the properties are worth—critics say this can inflate reported values and make returns look better than they are.
- Limited redemption windows may restrict liquidity
- Peer-leading size could limit agility in niche opportunities
Verdict
2/5 – BREIT offers access to institutional real estate but comes with valuation opacity, liquidity constraints, and higher fees. It’s suitable only for investors with long horizons and tolerance for illiquidity.
Fees & Expenses
BREIT’s fee structure looks straightforward at first glance, but it’s the ongoing costs that quietly erode your returns—year after year. Unlike some funds that skip sales commissions or performance fees, BREIT charges a combination of management fees, servicing fees, and operating expenses that add up quickly.
Fee Type
Why It Matters
How Calculated
Typical Amount
Management Fee
Pays the fund manager
1.25% of NAV per year
1.25%
Operating Expenses
Fund admin, legal, accounting, etc.
Approx. 0.85% of NAV
0.85%
Distribution/Servicing Fee
Pays for distribution and servicing
Approx. 0.10% of NAV
0.10%
Total Annual Expenses
2.20%
These fees are charged regardless of how the funds perform. That means even in a flat or down year, Blackstone collects its cut.
Fee Impact Example:
$10,000 invested for 10 years at a 8.5% net return:
- You’d pay about $500/year in fees—meaning nearly 18% of your potential gains lost to ongoing expenses, not compounding for your future.
Portfolio Snapshot
As of Dec 2024
Balance Sheet
Geography
Property Sector
Overview
ALIGNMENT: Average
- Blackstone’s team has put $1.3 billion of their own money into BREIT, which sounds impressive, but it’s less than 2% of the fund’s total assets. That means they have some skin in the game, but not enough to truly align their interests with yours.
- Most of their compensation still comes from management and performance fees, so they get paid whether the fund does well or not. This is a “partial alignment”—better than nothing, but not a full vote of confidence.
Performance: Below Average
- BREIT advertises an 8.5% average annual return since 2017, but here’s the catch: those numbers are based on Blackstone’s own internal estimates of what their properties are worth, not actual market sales. This “mark-to-model” approach means the returns could look better on paper than they are in reality.
- For investors, it’s hard to know if you’re seeing true performance or just optimistic accounting, making it tough to compare with public REITs or stocks.
Market Risk: Average
- BREIT’s portfolio is heavily invested in rental housing, industrial warehouses, and data centers—sectors that have done well recently but are sensitive to rising interest rates and economic slowdowns. If rates go up or the economy cools, property values and rental income could take a hit.
- While the fund is diversified across property types, it’s still exposed to the ups and downs of the real estate market, so don’t expect it to be immune from broader market shocks.
Business Risk: Below Average
- Being backed by Blackstone gives BREIT access to top-tier deals and operational expertise, but the fund’s sheer size and complexity can be a double-edged sword. Managing billions across hundreds of properties means more moving parts and potential for mistakes.
- If Blackstone’s strategy or execution falters, or if there’s a major management change, the impact could ripple through the fund. This means you’re relying on a big machine running smoothly—most of the time it does, but not always.
Liquidity Risk: Average
- BREIT uses leverage to boost returns, with about 49% of its assets financed by debt—mostly at fixed rates. This can help performance when times are good, but it also means higher risk if property values drop or if refinancing becomes expensive.
- While fixed-rate loans offer some protection from rising interest rates, high leverage can magnify losses in a downturn. It’s a balanced approach, but not without real risk if the market turns.
Debt Risk: Average
- You can request to cash out of BREIT monthly, but there’s a catch: withdrawals are capped at 5% of the fund’s value each month, and in times of high demand, you might only get a fraction of what you ask for.
- In the past, investors have faced delays or partial redemptions when too many people wanted out at once. This means your money isn’t as accessible as it would be in a public REIT or stock fund—plan to stay invested for the long haul.
Transparency: Below Average
- BREIT provides regular monthly reports and updates, but the way it values its assets is not fully transparent. The fund relies on internal models and has the final say on property values, which can make it hard for investors to independently verify performance.
- For those who value clear, open information, this lack of transparency is a real drawback. You’ll get more detail than with some private funds, but it’s still not as open as public market investments.
Manager Insights
The people running your money matter. Here’s what you need to know about this team:
Rob Harper
Interim CEO & DirectorExperience & Highlights: Mr. Harper previously worked for Blackstone in Los Angeles and London, where he served as Head of Europe for the Blackstone Real Estate Debt Strategies business.
Education: BS from the McIntire School of Commerce at the University of Virginia.
AJ Agarwal
Director & Co-PresidentExperience & Highlights: 30+ years, co-head of Blackstone U.S. Acquisitions team.
Education: B.A Politics from Princeton University MBA from Stanford.
Here’s the deal: While Blackstone likes to highlight that its management team has invested over $1.3 billion of their own money in BREIT, that figure represents less than 2% of the fund’s total assets. For a fund of this size, it’s a respectable commitment—but let’s be real, it’s not a game-changing bet on the outcome.
The managers have some skin in the game, but nowhere near the level that would truly align their interests with yours. Their main compensation still comes from management and performance fees, which are based on the fund’s net asset value—even if that value is up for debate. So, while you’re taking on the full risk of your investment, Blackstone’s team is still collecting fees regardless of how the fund performs.
Peer Comparison
Features
Blackstone REIT
Hines
Brookfield
Min. Investment
$2,500
$2,500
$2,500
Inception Date
January, 2017
August, 2014
December 2019
1-Year Net Returns
1.2%
3.00%
-1.20%
Net Returns Since Inception (Annualized)
8.5%
5.4%
5.50%
Annualized Distribution Rate
3.9%
5.4%
5.9%
NOYACK® Score
Disclaimer
All Rights Reserved. The data and analyses contained herein are the property of Noyack and are protected by copyright and other intellectual property laws. The information provided is intended solely for informational purposes and should not be construed as investment advice. It is not an offer to buy or sell a security, and it is not intended to be used as the sole basis for any investment decision. The information contained in this document is believed to be accurate and reliable based on sources believed to be reliable, but Noyack makes no representation or warranty, express or implied, as to its completeness, accuracy, or timeliness. The data and analyses are subject to change without notice and Noyack is not obligated to update this information. The use of the information contained in this document is at the sole risk of the reader, and Noyack shall not be responsible for any losses, damages, or expenses incurred by any person as a result of reliance on the information contained herein. Noyack does not endorse or approve any investment or trading strategy and does not guarantee any specific outcome or profit. The reader should always conduct their own independent analysis and consult with a qualified financial advisor before making any investment decisions. This document may contain forward-looking statements and projections which are subject to risks and uncertainties, and actual results may differ materially. Past performance is not indicative of future results. This document is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Noyack reserves the right to modify or discontinue the provision of the information contained in this document, in whole or in part, at any time and without notice. The information contained in this document is provided “as is” and Noyack makes no representation or warranty of any kind, express or implied, as to the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of the information contained in this document. Noyack shall not be liable for any errors or omissions contained in this document or for any damages whatsoever arising out of or in connection with the use of this document.