Skip to content
Friday, October 23, 2026 · Today’s edition, 6:30 a.m. ETFri, Oct 23 · 6:30 a.m. editionSign inMy Desk 0EditionsSign in

Blackstone opportunistic real estate posts 3.2% loss after valuation cap rate increases

The opportunistic arm was the only Blackstone unit to post a third-quarter loss; core-plus real estate gained 1.6%.

At a glance

  1. President Jon Gray attributed the decline to higher interest rates.
  2. Applying a higher cap rate to the same net operating income produces a lower valuation.
  3. Core-plus real estate gained 1.6% in the quarter, according to PRED's earlier reporting.

Blackstone's opportunistic real estate segment posted a 3.2% loss in the third quarter, the only part of the firm to post a loss, according to company financial statements reported by The Real Deal.

President Jon Gray attributed the decline to higher interest rates. Blackstone raised valuation cap rates across its holdings in response to higher base rates, which led to depreciation in the opportunistic portfolio, he said, according to The Real Deal. That segment holds distressed assets and turnaround projects.

Applying a higher cap rate to the same net operating income produces a lower valuation.

Core-plus real estate gained 1.6% in the quarter, according to PRED's earlier reporting. Real estate AUM was about $309 billion, down from $314.2 billion. The arm drew $6.3 billion of inflows and realized $7 billion.

SegmentQ3 performanceSource
Opportunistic real estate-3.2%Company financials, via The Real Deal
Core-plus real estate+1.6%PRED, Oct. 22
Real estate AUM~$309B, from $314.2BPRED, Oct. 22

Reported by the Sectors desk from The Real Deal — National. Published . Corrections

Related

Real Estate

Blackstone opportunistic real estate funds fall 3.2% as BREIT raises $1.3 billion

Core-plus funds gained 1.6% while real estate distributable earnings fell 10% to $1.68 billion, per Commercial Observer.

Real Estate

Blackstone opportunistic real estate funds fall 3.2% in Q3 as core-plus gains 1.6%

Real estate AUM slipped to about $309 billion from $314.2 billion, while the arm drew $6.3 billion of inflows and realized $7 billion.

Real Estate

Six asset giants sign $500B MOU with Nvidia for AI build-out

Apollo, BlackRock, Blackstone, Brookfield, Goldman and KKR have signed a framework with Nvidia that steers institutional real estate capital into data centers and changes how the deals get built, underwritten and priced.

Real Estate

U.S. large industrial new leases hit 92% of peak as renewals fall

Leasing volume still does not equal absorption; relocations and weaker renewals can leave space behind, CoStar says.

Real Estate

Lubert-Adler looks to sell 595,000 sq ft Philadelphia office

The Center City building is 99% leased with eight years of weighted average lease term; the report gives no asking price or loan terms.

Private Real Estate Dailyfrom Private Wealth Daily

Non-traded REITs, data centers, industrial and manager fundraising. Weekdays at 7:20 a.m. ET.

Free. Weekday mornings. Unsubscribe from any edition in one click.

From other sections