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.
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