BREIT Redemptions Not Far Off From Our Expectations; No Change to Our FVE for Blackstone

We don't envision making a significant change to our $115 per share fair value estimate for Blackstone following news that the firm has limited withdrawals from its $70 billion non-listed real estate investment trust fund, known as BREIT, due to a surge in redemption requests during October and November. The company made this announcement late last week after the level of withdrawal requests it received in October exceeded the fund's monthly limit of 2% of its net asset value, as well as its quarterly threshold of 5% of NAV. Blackstone has not been alone in limiting redemptions, as Starwood Real Estate Income Trust, which is also a nontraded REIT (and the second-largest such fund behind BREIT), announced early this week that it would be curbing redemptions after investor withdrawal requests exceeded the fund's monthly limit in November (with the fund also limiting monthly redemptions to 2% of NAV and quarterly redemptions to 5% of NAV).