Blackstone Shares Negatively Impacted by Increased BREIT Redemption Requests

While Blackstone's shares traded down more than 3% April 3 on news that redemption requests for the Blackstone Real Estate Income Trust, or BREIT, ticked up again in March, we do not expect to alter our fair value estimate or narrow moat rating on the firm. BREIT, which is geared more toward income-oriented investors above a certain wealth threshold (but below the standard threshold for most of Blackstone's private equity and private credit funds), was designed to generate steady cash flows for investors, with its annualized distribution rate being 4.5% since inception and the fund itself increasing in value 14.7% on an annualized basis over the past three years at the end of February 2023.