As the private equity firm continues to deal with a flood of redemption requests, Blackstone Inc said on Wednesday that it had barred clients from paying out their assets in its $71 billion real estate income trust (BREIT).
BREIT said in a statement to clients that it completed $1.4 billion in redemption requests in February, accounting for only 35% of the total $3.9 billion in withdrawal requests for the month.
According to the company, total BREIT redemption requests hit roughly $5.3 billion in January, which is 26% less than the amount received in February.
While gross redemptions for February are consistent with previous management commentary, the overall data "continues to align with our view of decelerating retail-oriented product organic growth generally," Credit Suisse analysts headed by Bill Katz wrote in a letter to investors.
Credit Suisse lowered Blackstone's shares to underperform in November, citing an increase in BREIT investor redemptions. On Wednesday afternoon dealing, Blackstone's stock was down 0.25% to $90.57 per share. Last year, the stock dropped 43% of its worth.
Blackstone has been employing its right to stop investors' withdrawals since November last year after requests reached a preset 5% net asset value of BREIT, which is sold to mostly high net worth people.
Blackstone anticipates that it will continue to work with its investors.
As the private equity firm continues to deal with a flood of redemption requests, Blackstone Inc said on Wednesday that it had barred investors from paying out their assets in its $71 billion real estate income trust (BREIT).
BREIT, said in a statement to clients that it completed $1.4 billion in redemption requests in February, accounting for only 35% of the total $3.9 billion in withdrawal requests for the month.
According to the company, total BREIT redemption requests hit roughly $5.3 billion in January, which is 26% less than the amount received in February.
Related video: Schwarzman, Chairman of Blackstone, got a dividend and $253 million in pay (WION)
Blackstone blocked investor withdrawals from $71 billion REIT in February https://www.msn.com/en-ca/money/topstories/blackstone-blocked-investor-withdrawals-from-71-billion-reit-in-february/ar-AA186mhb?ocid=mailsignout&pc=U591&cvid=474ec7151039446e91f8f865e2aa2adf&ei=18
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
My Favorite Murder with Karen Kilgariff and Georgia Hardstark
My Favorite Murder is a true crime comedy podcast hosted by Karen Kilgariff and Georgia Hardstark. Each week, Karen and Georgia share compelling true crimes and hometown stories from friends and listeners. Since MFM launched in January of 2016, Karen and Georgia have shared their lifelong interest in true crime and have covered stories of infamous serial killers like the Night Stalker, mysterious cold cases, captivating cults, incredible survivor stories and important events from history like the Tulsa race massacre of 1921. My Favorite Murder is part of the Exactly Right podcast network that provides a platform for bold, creative voices to bring to life provocative, entertaining and relatable stories for audiences everywhere. The Exactly Right roster of podcasts covers a variety of topics including historic true crime, comedic interviews and news, science, pop culture and more. Podcasts on the network include Buried Bones with Kate Winkler Dawson and Paul Holes, That's Messed Up: An SVU Podcast, This Podcast Will Kill You, Bananas and more.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com