BREIT posts second straight quarter of positive net flows

Blackstone Real Estate Income Trust posted a second straight quarter of positive net flows in the third quarter, its strongest since 2022, the company said in a Nov. 4 stockholder update. Year-to-date subscriptions were up about 40% from a year earlier.

BREIT did not disclose a dollar figure for third-quarter net flows. It calculates net flows as subscriptions minus gross repurchase requests under its share repurchase plan, including distribution reinvestment and operating partnership units and excluding subscriptions from UC Investments, the University of California's investment office.

QTS is now a larger allocation than either industrial or multifamily for advisors using BREIT as a private real estate sleeve. QTS accounted for 29.0% of BREIT's real estate asset value at Sept. 30, up from 22.5% at March 31. Industrial was 20% and multifamily 17%. BREIT reported a 4.5% annualized Class I distribution rate and classified 100% of its 2025 distributions as return of capital.

On Blackstone's Oct. 22 earnings call, executives said the fund raised $1.3 billion in the third quarter, including proceeds from its Delaware statutory trust program, as AltsWire reported.

BREIT sold about $7 billion of non-core assets in 2026, including its remaining self-storage and manufactured housing portfolios, the company said. It redeployed the proceeds into data centers and industrial properties. The figure reflects gross sales prices and includes dispositions under non-refundable contract. The self-storage exit was completed in the second quarter, when BREIT sold its last 79 properties for $852.3 million in net proceeds.

BREIT deployed $3.4 billion into pre-leased data center developments through QTS in the third quarter, bringing its 2026 total to $9.1 billion. It owned 34.8% of QTS at Sept. 30.

Class I shares returned 2% in the third quarter, 7.3% year to date and 10.7% over the trailing 12 months. Since its January 2017 inception, Class I has produced a 9.3% annualized net return, compared with 6.0% for the MSCI U.S. REIT Index over the same period, according to BREIT. The fund said it has recorded 21 consecutive months of positive performance.

Blackstone's nontraded BDC, BCRED, filled 49.9% of third-quarter repurchase requests, as Private Wealth Daily previously reported. It was the third straight quarter above the fund's 5% repurchase cap.