BREIT books $496.7M in impairments and meets all repurchase requests

Blackstone Real Estate Income Trust recorded $496.7 million of real estate impairment charges in the third quarter, up from $27.4 million a year earlier, and fulfilled every repurchase request it received. The nontraded REIT disclosed the results in a Nov. 6 filing, first reported by The DI Wire.

Impairments are a GAAP charge against a property's depreciated cost. They do not flow directly into BREIT's net asset value, which is based on the fair value of its holdings and sets the price at which shares are bought and repurchased. Of the $496.7 million, $453.7 million covered 13 rental housing properties, one office property and various single-family rental homes after BREIT updated its undiscounted cash flow assumptions. Another $43 million covered held-for-sale properties whose carrying value exceeded fair value less estimated closing costs.

For advisors holding the fund, the redemption line is the relevant figure: BREIT repurchased $0.8 billion of shares and units in the quarter. Monthly repurchases fell from 21.1 million shares in July to 15.6 million in September, and the quarter's total equaled 1.6% of NAV. Because BREIT's NAV is struck on fair value, the impairment charge leaves the buy and repurchase price unchanged. The fund raised $1.1 billion from common stock and operating partnership units plus $0.2 billion through its Delaware statutory trust program.

BREIT sold 65 rental housing properties, nine industrial properties and one office property for $2 billion in net proceeds and booked a $366.1 million net gain that it said was offset by the impairments. The rental housing sales included its remaining 40 manufactured housing properties, which produced $921 million in net proceeds and a $172.3 million gain. Non-core dispositions have totaled about $7 billion this year, and total assets fell to $88.9 billion at Sept. 30 from $98.6 billion at year-end 2025.

Impairments for the first nine months reached $731.1 million, compared with $368.8 million a year earlier. The third-quarter charge alone was more than three times the $135.2 million booked in the first quarter. Net loss attributable to stockholders narrowed to $160.9 million from $638.7 million, and quarterly revenue declined to $1.79 billion from $1.94 billion.

The quarter gave BREIT a second straight quarter of positive net flows, as Private Wealth Daily previously reported. BREIT said the nine-month cash flow updates were primarily to account for a shorter hold period.