Blackstone Real Estate Income Trust Inc.
11/06/2026 | Press release | Distributed by Public on 11/06/2026 15:43
Quarterly Report for Quarter Ending SEPTEMBER 30, 2026 (Form 10-Q)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
References herein to "Blackstone Real Estate Income Trust," "BREIT," the "Company," "we," "us," or "our" refer to Blackstone Real Estate Income Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.
The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q.
Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," "identify" or other similar words or the negatives thereof. These may include our financial estimates and their underlying assumptions, statements about plans, objectives, intentions and expectations with respect to positioning, including the impact of macroeconomic trends and market forces, future operations, repurchases, acquisitions, future performance, and statements about identified but not yet disclosed acquisitions. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in such statements. We believe these factors include but are not limited to those described under the section entitled "Risk Factors" in our prospectus and our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this document (or our prospectus and other filings). Except as otherwise required by federal securities laws, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
Website Disclosure
We use our website (www.breit.com) as a channel of distribution of company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases and SEC filings. The contents of our website are not, however, a part of this Quarterly Report on Form 10-Q.
Overview
We invest primarily in stabilized, income-generating commercial real estate in the United States and to a lesser extent, outside the United States. We also, to a lesser extent, invest in real estate debt investments. We are the sole general partner and majority limited partner of BREIT Operating Partnership L.P. ("BREIT OP"), a Delaware limited partnership, and we own substantially all of our assets through BREIT OP. We are externally managed by BX REIT Advisors L.L.C. (the "Adviser"). The Adviser is part of the real estate group of Blackstone Inc. ("Blackstone"), a leading investment manager. We currently operate our business in eight reportable segments: Rental Housing, Data Centers, Industrial, Net Lease, Office, Retail, Hospitality, and Investments in Real Estate Debt. Rental Housing includes multifamily and other types of rental housing such as student, affordable, and single family rental housing. Net Lease includes the real estate assets of The Bellagio Las Vegas, The Cosmopolitan of Las Vegas, and our unconsolidated investment in a Net Lease platform. Unconsolidated interests are included in the respective property segment.
We previously had nine reportable segments. In May 2026, we completed the disposition of all properties in the Self Storage segment. We determined that the disposition did not represent a strategic shift that has had, or is expected to have, a major effect on our operations or financial results, and therefore, did not meet the criteria to be classified as discontinued operations. Accordingly, the results of the Self Storage segment are included in continuing operations for all periods presented.
BREIT is a non-listed, perpetual life real estate investment trust ("REIT") that qualifies as a REIT under the Internal Revenue Code of 1986, as amended (the "Code"), for U.S. federal income tax. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT.
As of November 6, 2026, we had received cumulative net proceeds of $83.5 billion from the sale of 6.4 billion shares of our Class I, Class S, Class S-2, Class D, Class D-2, Class T, Class T-2, Class C, and Class L common stock in our continuous public offering and private offerings, and units of BREIT OP. We contributed the net proceeds from the sale of shares to BREIT OP in exchange for a corresponding number of Class I, Class S, Class S-2, Class D, Class D-2, Class T, Class T-2, Class C, and Class L units. As of November 6, 2026, there are no Class L-2 shares, Class F shares, Class L-2 units or Class F units outstanding. BREIT OP has primarily used the net proceeds to make investments in real estate and real estate debt and for other general corporate purposes (including to fund repurchase requests under our share repurchase plan (the "Share Repurchase Plan") from time to time) as further described below under "Investment Portfolio." We intend to continue selling shares of our common stock on a monthly basis through our continuous public offering and private offerings.
In November 2025, BREIT and BREIT OP commenced the DST Program to issue and sell DST Interests in DSTs holding DST Properties through private offerings. These DST Interests will be issued and sold to "accredited investors" as that term is defined under Regulation D promulgated by the SEC under the Securities Act in private placements exempt from registration pursuant to Section 4(a)(2) of the Securities Act (the "DST Offerings"). As of September 30, 2026, $265.2 million in net offering proceeds were raised through the DST Program, which are included in Non-controlling Interests Attributable to Consolidated Subsidiaries on the Condensed Consolidated Balance Sheets.
Under the DST Program, each DST Property may be sourced from our real properties or acquired from third parties, will be held in a separate DST, and will be leased by the DST to a wholly-owned subsidiary of BREIT OP under a master lease agreement. In accordance with the master lease, we are responsible for subleasing the DST Properties and for covering all costs associated with operating the underlying DST Properties. Each master lease agreement will be guaranteed by BREIT OP, which will retain the FMV Option, giving BREIT OP the right, but not the obligation, to acquire the DST Interests in the applicable DST from the DST investors any time during a defined period in exchange for BREIT OP units or, in certain cases, a combination of BREIT OP units and cash. After a one-year holding period, investors who acquire BREIT OP units pursuant to the FMV Option have a right to cause BREIT OP to redeem all or a portion of their OP units for, at our sole discretion, shares of our common stock, cash, or a combination of both.
Q3 2026 Highlights
Operating Results:
•Declared monthly net distributions totaling $609.4 million for the three months ended September 30, 2026. The details of the average annualized distribution rates and total returns are shown in the following table:
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Class I
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Class S
|
Class S-2
|
Class D
|
Class D-2
|
Class T
|
Class T-2
|
Class L | Class C | ||||||||||||||||||||||||||||||||||||||||||||||||
|
Average Annualized Distribution Rate(1)
|
4.6% | 3.7% | 3.7% | 4.4% | 4.4% | 3.8% | 3.8% | 4.5% | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
|
Year-to-Date Total Return, without upfront selling commissions(2)
|
7.3% | 6.6% | 7.0% | 7.0% | 7.8% | 6.6% | 6.8% | 7.7% | 7.3% | |||||||||||||||||||||||||||||||||||||||||||||||
|
Year-to-Date Total Return, assuming maximum upfront selling commissions(2)
|
N/A | 3.0% | 3.4% | 5.4% | 6.2% | 3.0% | 3.2% | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
|
Inception-to-Date Total Return, without upfront selling commissions(2)
|
9.3% | 8.4% | 9.6% | 9.1% | 10.3% | 8.5% | 9.6% | N/A | 4.4% | |||||||||||||||||||||||||||||||||||||||||||||||
|
Inception-to-Date Total Return, assuming maximum upfront selling commissions(2)
|
N/A | 8.0% | 6.2% | 8.9% | 8.8% | 8.1% | 6.2% | N/A | N/A | |||||||||||||||||||||||||||||||||||||||||||||||
Investments:
•Sold 65 rental housing properties(3), nine industrial properties and one office property, for total net proceeds of $2.0 billion. We recognized a net realized gain of $366.1 million. These net realized gains were offset by impairments recorded during the quarter of $496.7 million.
•The rental housing properties sold included the sale of the remaining 40 manufactured housing properties for net proceeds of $921.0 million, resulting in a net realized gain of $172.3 million.
•During the three months ended September 30, 2026, deployed $3.4 billion (at BREIT's share) into the development of data centers through our QTS platform. These data center developments are 100% pre-leased, in substantially all cases to investment grade tenants.
•Acquired 45 net lease properties for a total purchase price of $30.9 million (at BREIT's share) through our Reliant Net Lease Platform.
Capital and Financing Activity:
•Raised $1.1 billion from the sale of shares of our common stock and units of BREIT OP during the three months ended September 30, 2026. Repurchased $0.8 billion of our shares and units from investors during the three months ended September 30, 2026.
•Raised $0.2 billion in net offering proceeds through the DST Program during the three months ended September 30, 2026.
•Decreased financings by a net $0.8 billion during the three months ended September 30, 2026.
Current Portfolio:
•Our portfolio as of September 30, 2026 consisted of investments in real estate (96% based on fair value) and investments in real estate debt (4%).
•Our 4,493 properties(4) as of September 30, 2026 consisted primarily of Rental Housing (39% based on fair value), Data Centers (30%) and Industrial (20%), and our real estate portfolio was primarily concentrated in the following regions: South (35%), West (27%) and East (21%).
•Our investments in real estate debt as of September 30, 2026 consisted of a diversified portfolio of commercial mortgage-backed securities ("CMBS"), residential-backed securities ("RMBS"), mortgage and mezzanine loans, and other real estate-related debt. For further details on credit rating and underlying real estate collateral, refer to "Investment Portfolio - Investments in Real Estate Debt" below.
(1)The annualized distribution rate is calculated by averaging each of the three months' annualized distribution rates, which are calculated as the net distribution per share, divided by the prior month's net asset value per share. We believe the annualized distribution rate is a useful measure of our overall investment performance. Class C is an accumulating share class whereby its share of income will accrete into its NAV instead of receiving a distribution. Therefore, no annualized distribution rate is presented above for Class C shares.
(2)Total return is calculated as the change in NAV per share during the respective periods plus any distributions per share declared in the period, and assumes any distributions are reinvested under our distribution reinvestment plan. Total return for periods greater than one year is annualized. Class L shares were first outstanding as of January 1, 2026. Inception-to-date total returns for Class L shares will be disclosed once these shares have been outstanding for more than one year. We believe total return is a useful measure of our overall investment performance.
(3)Excludes the number of single family rental homes sold.
(4)Excludes 62,176 single family rental homes. Such single family rental homes are included in the fair value amounts.
Investment Portfolio
Portfolio Summary
The following chart shows the allocation of our investments between real estate and real estate debt based on fair value as of September 30, 2026:
Real Estate Investments
The following charts further describe the diversification of our investments in real estate based on fair value as of September 30, 2026:
(1) "Real estate investments" include wholly owned property investments, BREIT's share of property investments held through joint ventures and equity in public and private real estate-related companies. "Real estate debt" includes BREIT's investments in CMBS, RMBS, mortgage and mezzanine loans, and other debt secured by real estate and real estate related assets, and excludes the impact of consolidating the loans that serve as collateral for certain of our debt securities on our Condensed Consolidated Generally Accepted Accounting Principles ("GAAP") Balance Sheets. "Property Sector" weighting is measured as the asset value of real estate investments for each sector category divided by the asset value of all real estate investments, excluding the value of any third party interests in such real estate investments. "Region Concentration" represents regions as defined by the National Council of Real Estate Investment Fiduciaries ("NCREIF") and the weighting is measured as the asset value of our real estate properties for each regional category divided by the asset value of all real estate properties, excluding the value of any third party interests in such real estate properties. "Non-U.S." reflects investments in Europe and Canada.
The following map identifies the top markets of our real estate portfolio composition based on fair value as of September 30, 2026:
The select states highlighted represent BREIT's top three states by portfolio weighting. Portfolio weighting is measured as the asset value of real estate properties for each state divided by the total asset value of all real estate properties, excluding the value of any third party interests in such real estate investments. Sunbelt refers to ~65% concentration in the South and West regions of the U.S. as defined by NCREIF. BREIT is invested in additional states that are not highlighted above.
As of September 30, 2026, we owned, in whole or in part, a diversified portfolio of income producing assets comprising 4,493 properties and 62,176 single family rental homes concentrated in growth markets primarily focused in Rental Housing, Data Centers, Industrial properties, and to a lesser extent Net Lease, Office, Retail, and Hospitality properties.
The following table provides a summary of our portfolio by property sector as of September 30, 2026:
|
Sq. Feet (in
thousands)/
Units/Keys(1)(2)(3)
|
Average Effective
Annual Base Rent Per Leased Square Foot/Units/Keys(3)(5)
|
Gross Asset
Value(6)
($ in thousands)
|
Property Sector Revenue(7)
For the Nine Months Ended September 30,
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|||||||||||||||||||||||||||||||||||||||||
|
Property Sector
|
Number of
Properties(1)(2)
|
Occupancy
Rate(3)(4)
|
2026
($ in thousands)
|
2025
($ in thousands)
|
||||||||||||||||||||||||||||||||||||||||
|
Rental Housing(8)
|
746 | 232,717 units | 93% | $23,185 | $ | 48,196,925 | $ | 3,076,328 | $ | 3,389,734 | ||||||||||||||||||||||||||||||||||
| Data Centers | 155 | 25,211 sq. ft. | 100% | $17.08 | 37,697,260 | 1,243,446 | 670,152 | |||||||||||||||||||||||||||||||||||||
| Industrial | 2,930 | 388,984 sq. ft. | 94% | $7.21 | 25,760,401 | 1,236,558 | 1,286,869 | |||||||||||||||||||||||||||||||||||||
| Net Lease | 349 | 18,297 sq. ft. | 99% | N/A | 6,248,428 | 413,967 | 387,386 | |||||||||||||||||||||||||||||||||||||
| Office | 11 | 4,684 sq. ft. | 99% | $47.61 | 3,020,685 | 198,262 | 205,501 | |||||||||||||||||||||||||||||||||||||
| Retail | 60 | 8,366 sq. ft. | 96% | $22.87 | 2,632,375 | 167,699 | 170,285 | |||||||||||||||||||||||||||||||||||||
| Hospitality | 242 | 33,056 keys | 74% | $194.92/$143.94 | 2,499,614 | 499,531 | 480,618 | |||||||||||||||||||||||||||||||||||||
|
Self Storage(9)
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- | - | - | - | - | 27,285 | 56,568 | |||||||||||||||||||||||||||||||||||||
| Total | 4,493 | 94% | $ | 126,055,688 | $ | 6,863,076 | $ | 6,647,113 | ||||||||||||||||||||||||||||||||||||
(1)Single family rental homes are included in rental housing units and are not reflected in the number of properties.
(2)Includes properties owned by unconsolidated entities.
(3)Excludes land under development related to our rental housing, industrial and data center investments.
(4)For our data centers, industrial, net lease, office and retail investments, occupancy includes all leased square footage as of September 30, 2026. For our multifamily, student housing and affordable housing investments, occupancy is defined as the percentage of actual rent divided by gross potential rent (defined as actual rent for occupied units and market rent for vacant units) for the three months ended September 30, 2026. For our single family rental housing investments, the occupancy rate includes occupied homes for the month ended September 30, 2026. The average occupancy rate for our hospitality investments includes paid occupied rooms for the 12 months ended September 30, 2026. Hospitality investments owned less than 12 months are excluded from the average occupancy rate calculation. Total occupancy is weighted by the total value of all consolidated real estate properties, excluding our hospitality investments, and any third party interests in such properties. Unconsolidated investments are excluded from occupancy rate calculations.
(5)For multifamily and rental housing properties, average effective annual base rent represents the base rent for the three months ended September 30, 2026 per leased unit, and excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization. For data centers, industrial, net lease, office, and retail properties, average effective annual base rent represents the annualized September 30, 2026 base rent per leased square foot or unit and excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization. For hospitality properties, average effective annual base rent represents average daily rate ("ADR") and revenue per available Room ("RevPAR"), respectively, for the 12 months ended September 30, 2026. Hospitality investments owned less than 12 months are excluded from the ADR and RevPAR calculations. Unconsolidated investments are excluded from average effective annual base rent calculations.
(6)Gross Asset Value consists of our $77.9 billion allocable share of consolidated real estate properties and our $48.2 billion allocable share of the gross real estate value held by unconsolidated entities, in each case excluding the value of any third-party interests in such real estate investments. Such amounts are measured on a fair value basis.
(7)Includes the revenues from our consolidated real estate properties and our allocable share of revenues from properties held by unconsolidated entities. See the Property Sector Revenue disclosure immediately following this table for certain Non-GAAP disclosures and reconciliations.
(8)Rental Housing includes multifamily and other types of rental housing such as student, affordable and single family rental housing. Rental Housing units include multifamily units, student housing units, affordable housing units and single family rental homes.
(9)The Company exited the self storage segment as a result of the sale of all remaining properties in May 2026. Property Sector Revenue for the nine months ended September 30, 2026 includes activity through the date of sale.
Property Sector Revenue
Property Sector Revenue is a supplemental non-GAAP measure of revenue that includes our allocable share of the revenues from all consolidated and unconsolidated properties in our portfolio, which we believe is meaningful for management, investors, and other users of our financial statements to assess the scale of our exposure to different property sectors. We define Property Sector Revenue as our allocable share of the revenues from our consolidated properties plus our allocable share of revenues from unconsolidated entities. Property Sector Revenue may not be comparable to that of other companies and should not be considered to be more relevant or accurate in evaluating our operating performance than GAAP total revenues.
The following table provides a reconciliation of GAAP total revenues to Property Sector Revenue ($ in thousands):
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
|
Total revenues(1)
|
$ | 5,590,717 | $ | 5,996,997 | |||||||
|
Less: revenues allocable to non-controlling interests
|
(580,726) | (605,302) | |||||||||
|
Allocable share of revenues from unconsolidated entities
|
1,853,085 | 1,255,418 | |||||||||
| Property Sector Revenue | $ | 6,863,076 | $ | 6,647,113 | |||||||
(1)Reflects total revenues determined in accordance with GAAP. See Condensed Consolidated Statements of Operations for details of revenue components.
Real Estate
The following table provides information regarding our real estate portfolio as of September 30, 2026:
| Segment and Investment |
Number of
Properties(1)(2)
|
Location | Acquisition Date |
Ownership Interest(3)
|
Sq. Feet (in thousands)/Units/Keys(1)(2)(4)
|
Occupancy Rate(4)(5)
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| Rental Housing: | ||||||||||||||||||||||||||||||||||||||
| TA Multifamily Portfolio | 1 | Gurnee, IL | Apr. 2017 | 100% | 483 units | 94% | ||||||||||||||||||||||||||||||||
| Emory Point | 1 | Atlanta, GA | May 2017 | 100% | 750 units | 96% | ||||||||||||||||||||||||||||||||
| Nevada West Multifamily | 3 | Las Vegas, NV | May 2017 | 100% | 972 units | 94% | ||||||||||||||||||||||||||||||||
| Mountain Gate & Trails Multifamily | 2 | Las Vegas, NV | June 2017 | 100% | 539 units | 92% | ||||||||||||||||||||||||||||||||
| Elysian West Multifamily | 1 | Las Vegas, NV | July 2017 | 100% | 466 units | 92% | ||||||||||||||||||||||||||||||||
| ACG II Multifamily | 3 | Various | Sept. 2017 | 94% | 740 units | 93% | ||||||||||||||||||||||||||||||||
| Olympus Multifamily | 1 | Jacksonville, FL | Nov. 2017 | 95% | 480 units | 94% | ||||||||||||||||||||||||||||||||
| Amberglen West Multifamily | 1 | Hillsboro, OR | Nov. 2017 | 100% | 396 units | 94% | ||||||||||||||||||||||||||||||||
| Aston Multifamily Portfolio | 2 | Boerne, TX & Louisville, KY | Various | 100% | 288 units | 92% | ||||||||||||||||||||||||||||||||
| Talavera and Flamingo Multifamily | 2 | Las Vegas, NV | Dec. 2017 | 100% | 674 units | 96% | ||||||||||||||||||||||||||||||||
| Montair Multifamily | 1 | Thornton, CO | Dec. 2017 | 100% | 320 units | 91% | ||||||||||||||||||||||||||||||||
| Signature at Kendall Multifamily | 2 | Miami, FL | Dec. 2017 | 100% | 546 units | 94% | ||||||||||||||||||||||||||||||||
| Wave Multifamily Portfolio | 3 | Various | May 2018 | 100% | 1,248 units | 93% | ||||||||||||||||||||||||||||||||
| ACG III Multifamily | 2 | Gresham, OR & Turlock, CA | May 2018 | 95% | 475 units | 95% | ||||||||||||||||||||||||||||||||
| Carroll Florida Multifamily | 1 | Jacksonville, FL | May 2018 | 100% | 320 units | 94% | ||||||||||||||||||||||||||||||||
| Solis at Flamingo | 1 | Las Vegas, NV | June 2018 | 95% | 524 units | 92% | ||||||||||||||||||||||||||||||||
| Coyote Multifamily Portfolio | 4 | Phoenix, AZ | Aug. 2018 | 100% | 1,016 units | 94% | ||||||||||||||||||||||||||||||||
| Avanti Apartments | 1 | Las Vegas, NV | Dec. 2018 | 100% | 414 units | 92% | ||||||||||||||||||||||||||||||||
| Roman Multifamily Portfolio | 9 | Various | Feb. 2019 | 100% | 2,403 units | 92% | ||||||||||||||||||||||||||||||||
| Raider Multifamily Portfolio | 4 | Las Vegas, NV | Various | 100% | 1,514 units | 93% | ||||||||||||||||||||||||||||||||
| Bridge II Multifamily Portfolio | 4 | Various | Various | 100% | 1,562 units | 93% | ||||||||||||||||||||||||||||||||
| Miami Doral 2-Pack | 2 | Miami, FL | May 2019 | 100% | 720 units | 95% | ||||||||||||||||||||||||||||||||
| Davis Multifamily 2-Pack | 2 | Raleigh, NC & Jacksonville, FL | May 2019 | 100% | 454 units | 94% | ||||||||||||||||||||||||||||||||
| Slate Savannah | 1 | Savannah, GA | May 2019 | 90% | 272 units | 92% | ||||||||||||||||||||||||||||||||
| Amara at MetroWest | 1 | Orlando, FL | May 2019 | 95% | 411 units | 90% | ||||||||||||||||||||||||||||||||
| Edge Las Vegas | 1 | Las Vegas, NV | June 2019 | 95% | 296 units | 93% | ||||||||||||||||||||||||||||||||
| ACG IV Multifamily | 2 | Woodland, CA & Puyallup, WA | June 2019 | 95% | 606 units | 94% | ||||||||||||||||||||||||||||||||
| Anson at the Lakes | 1 | Charlotte, NC | June 2019 | 100% | 694 units | 89% | ||||||||||||||||||||||||||||||||
| Edgewater at the Cove | 1 | Oregon City, OR | Aug. 2019 | 100% | 248 units | 92% | ||||||||||||||||||||||||||||||||
| Haven 124 Multifamily | 1 | Denver, CO | Sept. 2019 | 100% | 562 units | 84% | ||||||||||||||||||||||||||||||||
| Villages at McCullers Walk Multifamily | 1 | Raleigh, NC | Oct. 2019 | 100% | 412 units | 94% | ||||||||||||||||||||||||||||||||
| Canopy at Citrus Park Multifamily | 1 | Largo, FL | Oct. 2019 | 90% | 318 units | 93% | ||||||||||||||||||||||||||||||||
| Ridge Multifamily Portfolio | 2 | Las Vegas, NV | Oct. 2019 | 90% | 456 units | 93% | ||||||||||||||||||||||||||||||||
| Evolve at Timber Creek Multifamily | 1 | Garner, NC | Nov. 2019 | 100% | 304 units | 93% | ||||||||||||||||||||||||||||||||
| Arium Multifamily Portfolio | 2 | Ocoee & Oviedo, FL | Dec. 2019 | 100% | 700 units | 93% | ||||||||||||||||||||||||||||||||
| Acorn Multifamily Portfolio | 14 | Various | Feb. & May 2020 | 98% | 5,964 units | 94% | ||||||||||||||||||||||||||||||||
| Indigo West Multifamily | 1 | Orlando, FL | Mar. 2020 | 100% | 456 units | 90% | ||||||||||||||||||||||||||||||||
| Park & Market Multifamily | 1 | Raleigh, NC | Oct. 2020 | 100% | 409 units | 92% | ||||||||||||||||||||||||||||||||
| The Palmer Multifamily | 1 | Charlotte, NC | Oct. 2020 | 90% | 318 units | 94% | ||||||||||||||||||||||||||||||||
| Jaguar Multifamily Portfolio | 3 | Various | Nov. & Dec. 2020 | 100% | 1,345 units | 93% | ||||||||||||||||||||||||||||||||
| Cortona South Tampa Multifamily | 1 | Tampa, FL | Apr. 2021 | 100% | 300 units | 93% | ||||||||||||||||||||||||||||||||
| Rosery Multifamily Portfolio | 1 | Largo, FL | Apr. 2021 | 100% | 224 units | 93% | ||||||||||||||||||||||||||||||||
| Encore Tessera Multifamily | 1 | Phoenix, AZ | May 2021 | 80% | 240 units | 92% | ||||||||||||||||||||||||||||||||
| Acorn 2.0 Multifamily Portfolio | 13 | Various | Various | 98% | 5,509 units | 94% | ||||||||||||||||||||||||||||||||
|
Vue at Centennial Multifamily(14)
|
1 | Las Vegas, NV | June 2021 | -% | 372 units | 92% | ||||||||||||||||||||||||||||||||
| Haven by Watermark Multifamily | 1 | Denver, CO | June 2021 | 100% | 206 units | 88% | ||||||||||||||||||||||||||||||||
| Legacy North Multifamily | 1 | Plano, TX | Aug. 2021 | 100% | 1,675 units | 90% | ||||||||||||||||||||||||||||||||
| The Brooke Multifamily | 1 | Atlanta, GA | Aug. 2021 | 100% | 537 units | 92% | ||||||||||||||||||||||||||||||||
| One Boynton Multifamily | 1 | Boynton Beach, FL | Aug. 2021 | 100% | 494 units | 96% | ||||||||||||||||||||||||||||||||
| Town Lantana Multifamily | 1 | Lantana, FL | Sept. 2021 | 90% | 360 units | 95% | ||||||||||||||||||||||||||||||||
| Ring Multifamily Portfolio | 12 | Various | Sept. 2021 | 100% | 3,030 units | 94% | ||||||||||||||||||||||||||||||||
| Villages at Pecan Grove Multifamily | 1 | Holly Springs, NC | Nov. 2021 | 100% | 336 units | 96% | ||||||||||||||||||||||||||||||||
| Cielo Morrison Multifamily Portfolio | 2 | Charlotte, NC | Nov. 2021 | 90% | 419 units | 93% | ||||||||||||||||||||||||||||||||
| FiveTwo at Highland Multifamily | 1 | Austin, TX | Nov. 2021 | 90% | 390 units | 95% | ||||||||||||||||||||||||||||||||
|
Roman 2.0 Multifamily Portfolio(14)
|
17 | Various | Dec. 2021 & Jan. 2022 |
Various(14)
|
5,580 units | 94% | ||||||||||||||||||||||||||||||||
| Kapilina Beach Homes Multifamily | 1 | Ewa Beach, HI | Dec. 2021 | 100% | 1,459 units | 91% | ||||||||||||||||||||||||||||||||
| SeaTac Multifamily Portfolio | 2 | Edgewood & Everett, WA | Dec. 2021 | 90% | 480 units | 93% | ||||||||||||||||||||||||||||||||
| Villages at Raleigh Beach Multifamily | 1 | Raleigh, NC | Jan. 2022 | 100% | 392 units | 90% | ||||||||||||||||||||||||||||||||
| Raider 2.0 Multifamily Portfolio | 3 | Las Vegas & Henderson, NV | Mar. & Apr. 2022 | 100% | 1,390 units | 94% | ||||||||||||||||||||||||||||||||
| Dallas Multifamily Portfolio | 2 | Irving & Fort Worth, TX | Apr. 2022 | 90% | 759 units | 94% | ||||||||||||||||||||||||||||||||
| Carlton at Bartram Park Multifamily | 1 | Jacksonville, FL | Apr. 2022 | 100% | 750 units | 95% | ||||||||||||||||||||||||||||||||
| Overlook Multifamily Portfolio | 2 | Malden & Revere, MA | Apr. 2022 | 100% | 1,386 units | 93% | ||||||||||||||||||||||||||||||||
| Harper Place at Bees Ferry Multifamily | 1 | Charleston, SC | Apr. 2022 | 100% | 195 units | 93% | ||||||||||||||||||||||||||||||||
| Rapids Multifamily Portfolio | 29 | Various | May 2022 | 100% | 8,526 units | 92% | ||||||||||||||||||||||||||||||||
| 8 Spruce Street Multifamily | 1 | New York, NY | May 2022 | 100% | 900 units | 95% | ||||||||||||||||||||||||||||||||
|
Pike Multifamily Portfolio(6)(14)
|
31 | Various | June 2022 |
Various(14)
|
8,632 units | 93% | ||||||||||||||||||||||||||||||||
| ACG V Multifamily | 2 | Stockton, CA | Sept. 2022 | 95% | 449 units | 93% | ||||||||||||||||||||||||||||||||
|
Tricon - Multifamily(7)
|
11 | Various | May 2024 |
Various(7)
|
2,770 units | (5) | ||||||||||||||||||||||||||||||||
| Mercury 3100 Student Housing | 1 | Orlando, FL | Feb. 2021 | 100% | 228 units | 82% | ||||||||||||||||||||||||||||||||
| Signal Student Housing Portfolio | 6 | Various | Aug. 2021 | 96% | 1,487 units | 93% | ||||||||||||||||||||||||||||||||
| Standard at Fort Collins Student Housing | 1 | Fort Collins, CO | Nov. 2021 | 97% | 237 units | 88% | ||||||||||||||||||||||||||||||||
| Intel Student Housing Portfolio | 4 | Reno, NV | Various | 98% | 808 units | 89% | ||||||||||||||||||||||||||||||||
| Signal 2.0 Student Housing Portfolio | 2 | Buffalo, NY & Athens, GA | Dec. 2021 | 97% | 366 units | 94% | ||||||||||||||||||||||||||||||||
| Robin Student Housing Portfolio | 5 | Various | Mar. 2022 | 98% | 1,137 units | 87% | ||||||||||||||||||||||||||||||||
| Legacy on Rio Student Housing | 1 | Austin, TX | Mar. 2022 | 97% | 144 units | 93% | ||||||||||||||||||||||||||||||||
| Mark at Tucson Student Housing | 1 | Mountain, AZ | Apr. 2022 | 97% | 154 units | 82% | ||||||||||||||||||||||||||||||||
| Legacy at Baton Rouge Student Housing | 1 | Baton Rouge, LA | May 2022 | 97% | 300 units | 95% | ||||||||||||||||||||||||||||||||
| American Campus Communities | 142 | Various | Aug. 2022 | 69% | 31,392 units | 91% | ||||||||||||||||||||||||||||||||
|
Home Partners of America(8)
|
N/A(1)
|
Various | Various |
Various(8)
|
21,729 units | 98% | ||||||||||||||||||||||||||||||||
|
Tricon - Single Family Rental(9)
|
N/A(1)
|
Various | May 2024 |
Various(9)
|
40,447 units | (5) | ||||||||||||||||||||||||||||||||
|
Ace Affordable Housing Portfolio(10)
|
308 | Various | Dec. 2021 |
Various(10)
|
44,478 units | 92% | ||||||||||||||||||||||||||||||||
| Florida Affordable Housing Portfolio | 41 | Various | Various | 100% | 10,465 units | 93% | ||||||||||||||||||||||||||||||||
| Palm Park Affordable Housing | 1 | Boynton Beach, FL | May 2022 | 100% | 160 units | 96% | ||||||||||||||||||||||||||||||||
| Wasatch 2-Pack Affordable Housing | 2 | Spring Valley, CA & Midvale, UT | Oct. 2022 | 100% | 350 units | 88% | ||||||||||||||||||||||||||||||||
| Total Rental Housing | 746 | 232,717 units | ||||||||||||||||||||||||||||||||||||
| Data Centers: | ||||||||||||||||||||||||||||||||||||||
| D.C. Powered Shell Warehouse Portfolio | 9 | Ashburn & Manassas, VA | June & Dec. 2019 | 90% | 1,471 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Highpoint Powered Shell Portfolio | 2 | Sterling, VA | June 2021 | 100% | 434 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
QTS Data Centers(11)
|
141 | Various | Aug. 2021 | 35.4% | 22,514 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Atlantic Powered Shell Portfolio | 3 | Sterling, VA | Apr. 2022 | 100% | 792 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Total Data Centers | 155 | 25,211 sq. ft. | ||||||||||||||||||||||||||||||||||||
| Industrial: | ||||||||||||||||||||||||||||||||||||||
| HS Industrial Portfolio | 38 | Various | Apr. 2017 | 100% | 4,127 sq. ft. | 94% | ||||||||||||||||||||||||||||||||
| Southeast Industrial Portfolio | 2 | Jacksonville, FL & La Vergne, TN | Nov. 2017 | 100% | 806 sq. ft. | 50% | ||||||||||||||||||||||||||||||||
| Kraft Chicago Industrial Portfolio | 3 | Aurora, IL | Jan. 2018 | 100% | 1,695 sq. ft. | 69% | ||||||||||||||||||||||||||||||||
|
Canyon Industrial Portfolio(14)
|
84 | Various | Mar. 2018 |
Various(14)
|
14,004 sq. ft. | 96% | ||||||||||||||||||||||||||||||||
| HP Cold Storage Industrial Portfolio | 6 | Various | May 2018 | 100% | 2,259 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Meridian Industrial Portfolio | 24 | Various | Nov. 2018 | 100% | 3,470 sq. ft. | 86% | ||||||||||||||||||||||||||||||||
| Summit Industrial Portfolio | 6 | Atlanta, GA | Dec. 2018 | 100% | 440 sq. ft. | 91% | ||||||||||||||||||||||||||||||||
| 4500 Westport Drive | 1 | Harrisburg, PA | Jan. 2019 | 100% | 179 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Minneapolis Industrial Portfolio | 33 | Minneapolis, MN | Apr. 2019 | 100% | 2,341 sq. ft. | 95% | ||||||||||||||||||||||||||||||||
| Atlanta Industrial Portfolio | 60 | Atlanta, GA | May 2019 | 100% | 3,738 sq. ft. | 92% | ||||||||||||||||||||||||||||||||
| Patriot Park Industrial Portfolio | 2 | Durham, NC | Sept. 2019 | 100% | 323 sq. ft. | 93% | ||||||||||||||||||||||||||||||||
| Denali Industrial Portfolio | 13 | Various | Sept. 2019 | 100% | 3,510 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
Jupiter 12 Industrial Portfolio(14)
|
220 | Various | Sept. 2019 |
Various(14)
|
39,538 sq. ft. | 94% | ||||||||||||||||||||||||||||||||
| 2201 Main Street | 1 | San Diego, CA | Oct. 2019 | 100% | 260 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Triangle Industrial Portfolio | 24 | Greensboro, NC | Jan. 2020 | 100% | 2,554 sq. ft. | 83% | ||||||||||||||||||||||||||||||||
| Midwest Industrial Portfolio | 24 | Various | Feb. 2020 | 100% | 5,539 sq. ft. | 85% | ||||||||||||||||||||||||||||||||
| Pancal Industrial Portfolio | 8 | Various | Feb. & Apr. 2020 | 100% | 1,867 sq. ft. | 92% | ||||||||||||||||||||||||||||||||
| Diamond Industrial | 1 | Pico Rivera, CA | Aug. 2020 | 100% | 243 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Inland Empire Industrial Portfolio | 2 | Etiwanda & Fontana, CA | Sept. 2020 | 100% | 404 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Shield Industrial Portfolio | 8 | Various | Dec. 2020 | 100% | 1,384 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| 7520 Georgetown Industrial | 1 | Indianapolis, IN | Dec. 2020 | 100% | 425 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
WC Infill Industrial Portfolio(11)
|
21 | Various | Jan. & Aug. 2021 | 85% | 2,064 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
|
Vault Industrial Portfolio(11)
|
48 | Various | Jan. 2021 | 46% | 6,597 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Chicago Infill Industrial Portfolio | 6 | Various | Feb. 2021 | 100% | 1,041 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Greensboro Industrial Portfolio | 19 | Various | Apr. 2021 | 100% | 2,068 sq. ft. | 76% | ||||||||||||||||||||||||||||||||
| I-85 Southeast Industrial Portfolio | 4 | Various | July & Aug. 2021 | 100% | 739 sq. ft. | 72% | ||||||||||||||||||||||||||||||||
|
Alaska Industrial Portfolio(11)
|
27 | Various UK | July & Oct. 2021 | 22% | 8,735 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Capstone Industrial Portfolio | 2 | Brooklyn Park, MN | Sept. 2021 | 100% | 219 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
Winston Industrial Portfolio(12)
|
106 | Various | Oct. 2021 |
Various(12)
|
26,215 sq. ft. | 97% | ||||||||||||||||||||||||||||||||
| Procyon Distribution Center Industrial | 1 | Las Vegas, NV | Oct. 2021 | 100% | 122 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Northborough Industrial Portfolio | 2 | Marlborough, MA | Oct. 2021 | 100% | 600 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
Coldplay Logistics Portfolio(11)
|
17 | Various Germany | Oct. 2021 | 10% | 1,742 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Canyon 2.0 Industrial Portfolio | 77 | Various | Nov. 2021 | 99% | 12,689 sq. ft. | 94% | ||||||||||||||||||||||||||||||||
| Tropical Sloane Las Vegas Industrial | 1 | Las Vegas, NV | Nov. 2021 | 100% | 171 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
Explorer Industrial Portfolio(11)
|
319 | Various | Nov. 2021 | 12% | 69,445 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
|
Evergreen Industrial Portfolio(11)
|
11 | Various Europe | Dec. 2021 | 10% | 5,548 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Maplewood Industrial | 6 | Various | Dec. 2021 | 100% | 1,850 sq. ft. | 93% | ||||||||||||||||||||||||||||||||
| Meadowland Industrial Portfolio | 3 | Las Vegas, NV | Dec. 2021 | 100% | 1,138 sq. ft. | 92% | ||||||||||||||||||||||||||||||||
| Bulldog Industrial Portfolio | 7 | Suwanee, GA | Dec. 2021 | 100% | 512 sq. ft. | 96% | ||||||||||||||||||||||||||||||||
| SLC NW Commerce Industrial | 3 | Salt Lake City, UT | Dec. 2021 | 100% | 529 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
Bluefin Industrial Portfolio(11)
|
70 | Various | Dec. 2021 | 23% | 10,811 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| 73 Business Center Industrial Portfolio | 1 | Greensboro, NC | Dec. 2021 | 100% | 217 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Amhurst Industrial Portfolio | 9 | Waukegan, IL | Mar. 2022 | 100% | 1,280 sq. ft. | 98% | ||||||||||||||||||||||||||||||||
| Shoals Logistics Center Industrial | 1 | Austell, GA | Apr. 2022 | 100% | 254 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Durham Commerce Center Industrial | 1 | Durham, NC | Apr. 2022 | 100% | 132 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
Mileway Industrial Portfolio(11)
|
1,607 | Various Europe | Various | 15% | 145,160 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Total Industrial | 2,930 | 388,984 sq. ft. | ||||||||||||||||||||||||||||||||||||
| Net Lease: | ||||||||||||||||||||||||||||||||||||||
| Bellagio Net Lease | 1 | Las Vegas, NV | Nov. 2019 | 49% | 8,507 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Cosmopolitan Net Lease | 1 | Las Vegas, NV | May 2022 | 80% | 6,902 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
Reliant Net Lease(11)
|
347 | Various | Various | 25% | 2,888 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Total Net Lease | 349 | 18,297 sq. ft. | ||||||||||||||||||||||||||||||||||||
| Office: | ||||||||||||||||||||||||||||||||||||||
| Coleman Highline Office | 1 | San Jose, CA | Oct. 2020 | 100% | 357 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Atlanta Tech Center Office | 1 | Atlanta, GA | May 2021 | 100% | 361 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Atlantic Complex Office | 3 | Toronto, Canada | Nov. 2021 | 97% | 259 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
|
One Manhattan West(11)
|
1 | New York, NY | Mar. 2022 | 49% | 2,086 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| One Culver Office | 1 | Culver City, CA | Mar. 2022 | 90% | 374 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Montreal Office Portfolio | 2 | Westmount & Montreal, QC | Mar. 2022 | 98% | 412 sq. ft. | 93% | ||||||||||||||||||||||||||||||||
| Atlanta Tech Center 2.0 Office | 1 | Atlanta, GA | June 2022 | 100% | 318 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Adare Office | 1 | Dublin, Ireland | Aug. 2022 | 75% | 517 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Total Office | 11 | 4,684 sq. ft. | ||||||||||||||||||||||||||||||||||||
| Hospitality: | ||||||||||||||||||||||||||||||||||||||
| Hyatt Place UC Davis | 1 | Davis, CA | Jan. 2017 | 100% | 127 keys | 66% | ||||||||||||||||||||||||||||||||
| Hyatt Place San Jose Downtown | 1 | San Jose, CA | June 2017 | 100% | 240 keys | 76% | ||||||||||||||||||||||||||||||||
| Florida Select-Service 4-Pack | 1 | Tampa, FL | July 2017 | 100% | 113 keys | 83% | ||||||||||||||||||||||||||||||||
| Hyatt House Downtown Atlanta | 1 | Atlanta, GA | Aug. 2017 | 100% | 150 keys | 68% | ||||||||||||||||||||||||||||||||
| Boston/Worcester Select-Service 3-Pack | 1 | Chelsea, MA | Oct. 2017 | 100% | 140 keys | 77% | ||||||||||||||||||||||||||||||||
| Henderson Select-Service 2-Pack | 2 | Henderson, NV | May 2018 | 100% | 228 keys | 71% | ||||||||||||||||||||||||||||||||
| Orlando Select-Service 2-Pack | 2 | Orlando, FL | May 2018 | 100% | 254 keys | 82% | ||||||||||||||||||||||||||||||||
| Corporex Select Service Portfolio | 1 | Rohnert Park, CA | Aug. 2018 | 100% | 102 keys | 75% | ||||||||||||||||||||||||||||||||
| Hampton Inn & Suites Federal Way | 1 | Seattle, WA | Oct. 2018 | 100% | 142 keys | 75% | ||||||||||||||||||||||||||||||||
| Courtyard Kona | 1 | Kailua-Kona, HI | Mar. 2019 | 100% | 455 keys | 76% | ||||||||||||||||||||||||||||||||
| Raven Select Service Portfolio | 10 | Various | June 2019 | 100% | 1,291 keys | 75% | ||||||||||||||||||||||||||||||||
| Urban 2-Pack | 1 | Chicago, IL | July 2019 | 100% | 337 keys | 69% | ||||||||||||||||||||||||||||||||
| Hyatt Regency Atlanta | 1 | Atlanta, GA | Sept. 2019 | 100% | 1,260 keys | 64% | ||||||||||||||||||||||||||||||||
| RHW Select Service Portfolio | 6 | Colorado Springs, CO | Nov. 2019 | 100% | 557 keys | 72% | ||||||||||||||||||||||||||||||||
| Key West Select Service Portfolio | 6 | Key West, FL | Oct. 2021 | 100% | 519 keys | 84% | ||||||||||||||||||||||||||||||||
| Sunbelt Select Service Portfolio | 3 | Various | Dec. 2021 | 100% | 716 keys | 71% | ||||||||||||||||||||||||||||||||
| HGI Austin University Select Service | 1 | Austin, TX | Dec. 2021 | 100% | 214 keys | 71% | ||||||||||||||||||||||||||||||||
|
Sleep Extended Stay Hotel Portfolio(11)
|
195 | Various | July 2022 | 30% | 24,802 keys | (5) | ||||||||||||||||||||||||||||||||
| Halo Select Service Portfolio | 7 | Various | Aug. & Oct. 2022 | 100% | 1,409 keys | 79% | ||||||||||||||||||||||||||||||||
| Total Hospitality | 242 | 33,056 keys | ||||||||||||||||||||||||||||||||||||
| Retail: | ||||||||||||||||||||||||||||||||||||||
| Bakers Centre | 1 | Philadelphia, PA | Mar. 2017 | 100% | 238 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Plaza Del Sol Retail | 1 | Burbank, CA | Oct. 2017 | 100% | 167 sq. ft. | 98% | ||||||||||||||||||||||||||||||||
| Vista Center | 1 | Miami, FL | Aug. 2018 | 100% | 89 sq. ft. | 99% | ||||||||||||||||||||||||||||||||
| El Paseo Simi Valley | 1 | Simi Valley, CA | June 2019 | 100% | 108 sq. ft. | 98% | ||||||||||||||||||||||||||||||||
| Towne Center East | 1 | Signal Hill, CA | Sept. 2019 | 100% | 163 sq. ft. | 99% | ||||||||||||||||||||||||||||||||
| Plaza Pacoima | 1 | Pacoima, CA | Oct. 2019 | 100% | 204 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| Canarsie Plaza | 1 | Brooklyn, NY | Dec. 2019 | 100% | 274 sq. ft. | 100% | ||||||||||||||||||||||||||||||||
| SoCal Grocery Portfolio | 6 | Various | Jan. 2020 | 100% | 685 sq. ft. | 96% | ||||||||||||||||||||||||||||||||
| Northeast Tower Center | 1 | Philadelphia, PA | Aug. 2021 | 100% | 301 sq. ft. | 99% | ||||||||||||||||||||||||||||||||
|
Southeast Retail Portfolio(11)
|
6 | Various | Oct. 2021 | 50% | 1,228 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Bingo Retail Portfolio | 10 | Various | Dec. 2021 | 100% | 1,767 sq. ft. | 97% | ||||||||||||||||||||||||||||||||
|
Pike Retail Portfolio(6)(13)
|
29 | Various | June 2022 |
Various(13)
|
3,111 sq. ft. | 96% | ||||||||||||||||||||||||||||||||
|
Tricon-Retail(11)
|
1 | Toronto, Canada | May 2024 | 12% | 31 sq. ft. | (5) | ||||||||||||||||||||||||||||||||
| Total Retail | 60 | 8,366 sq. ft. | ||||||||||||||||||||||||||||||||||||
| Total Investments in Real Estate | 4,493 | |||||||||||||||||||||||||||||||||||||
(1)Rental Housing includes multifamily and other types of rental housing such as student, affordable and single family rental housing. Rental Housing units include multifamily units, student housing units, affordable housing units and single family rental homes. Single family rental homes are accounted for in rental housing units and are not reflected in the number of properties.
(2)Includes properties owned by unconsolidated entities.
(3)Certain of our joint venture agreements provide the seller or the other partner a profits interest based on achieving certain internal rate of return hurdles. Such investments are consolidated by us and any profits interest due to the other partners is reported within non-controlling interests.
(4)Excludes land under development related to our rental housing, industrial and data centers investments.
(5)For our data centers, industrial, net lease, office and retail investments, occupancy includes all leased square footage as of September 30, 2026. For our multifamily, student housing and affordable housing investments, occupancy is defined as the percentage of actual rent divided by gross potential rent (defined as actual rent for occupied units and market rent for vacant units) for the three months ended September 30, 2026. For our single family rental housing investments, the occupancy rate includes occupied homes for the month ended September 30, 2026. The average occupancy rate for our hospitality investments includes paid occupied rooms for the 12 months ended September 30, 2026. Hospitality investments owned less than 12 months are excluded from the average occupancy rate calculation. Unconsolidated investments are excluded from occupancy rate calculations.
(6)Represents Preferred Apartment Communities.
(7)Includes various ownership interests in 11 unconsolidated multifamily properties.
(8)Includes a 100% interest in 12,749 consolidated single family rental homes, a 44% interest in 7,761 unconsolidated single family rental homes, and a 12% interest in 1,219 unconsolidated single family rental homes.
(9)Includes various ownership interests in 40,447 unconsolidated single family rental homes.
(10)Includes various ownership interests in 304 consolidated affordable housing properties and four unconsolidated affordable housing properties.
(11)Investment is unconsolidated.
(12)Includes various ownership interests in 87 consolidated industrial properties and 19 unconsolidated industrial properties.
(13)Includes 28 wholly owned retail properties and a 50% interest in one unconsolidated retail property.
(14)Includes properties held by DSTs as of September 30, 2026.
Lease Expirations
The following schedule details the expiring leases at our consolidated data centers, industrial, net lease, office and retail properties by annualized base rent and square footage as of September 30, 2026 ($ and square feet data in thousands). The table below excludes our rental housing properties as substantially all leases at such properties expire within 12 months:
| Year |
Number of Expiring Leases |
Annualized
Base Rent(1)
|
% of Total Annualized Base Rent Expiring |
Square Feet |
% of Total Square Feet Expiring |
|||||||||||||||||||||||||||
| 2026 (remaining) | 169 | $ | 39,927 | 2% | 13,837 | 9% | ||||||||||||||||||||||||||
| 2027 | 566 | 151,380 | 9% | 18,881 | 12% | |||||||||||||||||||||||||||
| 2028 | 583 | 195,993 | 11% | 24,006 | 15% | |||||||||||||||||||||||||||
| 2029 | 513 | 201,988 | 12% | 22,238 | 14% | |||||||||||||||||||||||||||
| 2030 | 418 | 199,006 | 11% | 19,797 | 13% | |||||||||||||||||||||||||||
| 2031 | 383 | 148,292 | 9% | 17,513 | 11% | |||||||||||||||||||||||||||
| 2032 | 161 | 101,852 | 6% | 11,184 | 7% | |||||||||||||||||||||||||||
| 2033 | 117 | 57,967 | 3% | 5,651 | 4% | |||||||||||||||||||||||||||
| 2034 | 62 | 27,978 | 2% | 3,574 | 2% | |||||||||||||||||||||||||||
| 2035 | 63 | 24,273 | 1% | 1,914 | 1% | |||||||||||||||||||||||||||
| Thereafter | 136 | 582,791 | 34% | 17,544 | 12% | |||||||||||||||||||||||||||
| Total | 3,171 | $ | 1,731,447 | 100% | 156,139 | 100% | ||||||||||||||||||||||||||
(1)Annualized base rent is determined from the annualized base rent per leased square foot as of September 30, 2026 and excludes tenant recoveries, straight-line rent, and above-market and below-market lease amortization.
Investments in Real Estate Debt
The following charts further describe the diversification of our investments in real estate debt by credit rating and collateral type, and includes our investments in CMBS, RMBS, mortgage loans, other debt secured by real estate assets, and an investment in a credit contract, and excludes the impact of consolidating the loans that serve as collateral for certain of our debt securities on our Consolidated GAAP Balance Sheets, based on fair value as of September 30, 2026:
(1)"AA" represents credit ratings of AA+, AA, and AA-, "A" represents credit ratings of A+, A, and A-, "BBB" represents credit ratings of BBB+, BBB, and BBB-, "BB" represents credit ratings of BB+, BB, and BB-, "B" represents credit ratings of B+, B, and B-, and "CCC" and below represents credit ratings of CCC+ and below.
(2)Not rated positions have a weighted-average LTV at origination of 67% and are primarily composed of industrial (58%) and rental housing (33%) assets.
The following table details our investments in real estate debt as of September 30, 2026 ($ in thousands):
| September 30, 2026 | ||||||||||||||||||||||||||||||||
|
Type of Security/Loan(1)
|
Weighted
Average
Coupon(2)
|
Weighted
Average
Maturity Date(3)
|
Face Amount |
Cost Basis |
Fair Value |
|||||||||||||||||||||||||||
|
CMBS(4)
|
+3.6% | 6/1/2040 | $ | 3,718,267 | $ | 3,704,544 | $ | 3,532,664 | ||||||||||||||||||||||||
| RMBS | 6.0% | 1/20/2064 | 237,981 | 235,323 | 215,118 | |||||||||||||||||||||||||||
| Corporate bonds | +2.6% | 8/15/2032 | 488,973 | 482,571 | 476,404 | |||||||||||||||||||||||||||
| Total real estate securities | 7.0% | 9/23/2040 | 4,445,221 | 4,422,438 | 4,224,186 | |||||||||||||||||||||||||||
| Commercial real estate loans | +4.7% | 3/14/2028 | 617,876 | 611,669 | 618,043 | |||||||||||||||||||||||||||
|
Other investments(5)
|
N/A | N/A | 97,432 | 97,432 | 99,974 | |||||||||||||||||||||||||||
| Total investments in real estate debt | 7.2% | 4/25/2036 | $ | 5,160,529 | $ | 5,131,539 | $ | 4,942,203 | ||||||||||||||||||||||||
(1)Includes our investments in CMBS, RMBS, mortgage loans, and other debt secured by real estate assets, and excludes the impact of consolidating the loans that serve as collateral for certain of our debt securities on our Consolidated GAAP Balance Sheets.
(2)The symbol "+" means that the figure represents a spread over the relevant floating benchmark rates, which include Secured Overnight Financing Rate ("SOFR"), Sterling Overnight Index Average ("SONIA"), and Euro Interbank Offer Rate ("EURIBOR"), as applicable to each security and loan. Fixed rate CMBS and commercial real estate loans are reflected as a spread over the relevant floating benchmark rates as of September 30, 2026 for purposes of the weighted averages. Weighted average coupon for CMBS does not include zero-coupon securities. As of September 30, 2026, we have interest rate swaps outstanding with a notional value of $0.8 billion that effectively convert a portion of our fixed rate investments in real estate debt to floating rates. Total weighted average coupon does not include the impact of such interest rate swaps or other derivatives.
(3)Weighted average maturity date is based on the fully extended maturity date of the instrument.
(4)Face amount excludes interest-only securities with a notional amount of $0.2 billion as of September 30, 2026. In addition, CMBS includes zero-coupon securities of less than $0.1 billion as of September 30, 2026.
(5)Includes an interest in an unconsolidated joint venture with the Federal Deposit Insurance Corporation that holds investments in real estate debt and the Company's investment in a credit contract. See Note 13 to the condensed consolidated financial statements for additional details on credit contracts. Weighted average coupon and weighted average maturity date are excluded for the Company's unconsolidated joint venture and investment in a credit contract.
Results of Operations
The following table sets forth information regarding our consolidated results of operations for the three months ended September 30, 2026 and 2025 ($ in thousands):
| Three Months Ended September 30, | Change | ||||||||||||||||
| 2026 | 2025 | $ | |||||||||||||||
| Revenues | |||||||||||||||||
| Rental revenue | $ | 1,573,612 | $ | 1,719,143 | $ | (145,531) | |||||||||||
| Hospitality revenue | 132,949 | 123,399 | 9,550 | ||||||||||||||
| Other revenue | 85,863 | 100,902 | (15,039) | ||||||||||||||
| Total revenues | 1,792,424 | 1,943,444 | (151,020) | ||||||||||||||
| Expenses | |||||||||||||||||
| Rental property operating | 777,835 | 827,809 | (49,974) | ||||||||||||||
| Hospitality operating | 94,443 | 89,125 | 5,318 | ||||||||||||||
| General and administrative | 12,674 | 17,958 | (5,284) | ||||||||||||||
| Management fee | 181,275 | 166,757 | 14,518 | ||||||||||||||
| Performance participation allocation | 163,016 | 124,029 | 38,987 | ||||||||||||||
| Impairment of investments in real estate | 496,681 | 27,386 | 469,295 | ||||||||||||||
| Depreciation and amortization | 721,775 | 788,475 | (66,700) | ||||||||||||||
| Total expenses | 2,447,699 | 2,041,539 | 406,160 | ||||||||||||||
| Other income (expense) | |||||||||||||||||
| Income (loss) from unconsolidated entities | 475,615 | (149,792) | 625,407 | ||||||||||||||
| Income from investments in real estate debt | 60,098 | 142,396 | (82,298) | ||||||||||||||
| Change in net assets of consolidated securitization vehicles | 10,593 | 18,613 | (8,020) | ||||||||||||||
| Income (loss) from interest rate derivatives | 119,469 | (159,269) | 278,738 | ||||||||||||||
| Net gain on dispositions of real estate | 366,087 | 332,883 | 33,204 | ||||||||||||||
| Interest expense, net | (676,137) | (768,735) | 92,598 | ||||||||||||||
| Gain (loss) on extinguishment of debt | 17,607 | (17,186) | 34,793 | ||||||||||||||
|
Other expense
|
(14,182) | (14,332) | 150 | ||||||||||||||
| Total other income (expense) | 359,150 | (615,422) | 974,572 | ||||||||||||||
|
Net loss
|
$ | (296,125) | $ | (713,517) | $ | 417,392 | |||||||||||
| Net loss attributable to non-controlling interests in consolidated subsidiaries | $ | 117,175 | $ | 18,164 | $ | 99,011 | |||||||||||
|
Net loss attributable to non-controlling interests in BREIT OP
|
18,060 | 56,671 | (38,611) | ||||||||||||||
|
Net loss attributable to BREIT stockholders
|
$ | (160,890) | $ | (638,682) | $ | 477,792 | |||||||||||
Rental Revenue
During the three months ended September 30, 2026, rental revenue decreased $145.5 million as compared to the three months ended September 30, 2025. The decrease can primarily be attributed to a $173.1 million decrease in Non-Same Property revenues due to the real estate dispositions we made from July 1, 2025 to September 30, 2026, partially offset by a $27.6 million increase in Same Property revenues. See "Same Property NOI" section for further details of the increase in Same Property revenues.
Hospitality Revenue
During the three months ended September 30, 2026, hospitality revenue increased $9.6 million as compared to the three months ended September 30, 2025. The increase can primarily be attributed to an $11.4 million increase in Same Property revenues, partially offset by a $1.8 million decrease in Non-Same Property revenues due to the real estate dispositions we made from July 1, 2025 to September 30, 2026. See "Same Property NOI" section for further details of the increase in Same Property revenues.
Other Revenue
During the three months ended September 30, 2026, other revenue decreased $15.0 million as compared to the three months ended September 30, 2025. The decrease can primarily be attributed to a $12.6 million decrease in Non-Same Property revenues due to the real estate dispositions we made from July 1, 2025 to September 30, 2026 and a $2.4 million decrease in Same Property revenues. See "Same Property NOI" section for further details of the decrease in Same Property revenues.
Rental Property Operating Expenses
During the three months ended September 30, 2026, rental property operating expenses decreased $50.0 million as compared to the three months ended September 30, 2025. The decrease can primarily be attributed to a $49.6 million decrease in Non-Same Property operating expenses, due to the real estate dispositions we made from July 1, 2025 to September 30, 2026, and a $0.4 million decrease in Same Property operating expenses. See "Same Property NOI" section for further details of the decrease in Same Property operating expenses.
Hospitality Operating Expenses
During the three months ended September 30, 2026, hospitality operating expenses increased $5.3 million as compared to the three months ended September 30, 2025. The increase can primarily be attributed to a $7.1 million increase in Same Property operating expenses, partially offset by a $1.8 million decrease in Non-Same Property operating expenses due to the real estate dispositions we made from July 1, 2025 to September 30, 2026. See "Same Property NOI" section for further details of the increase in Same Property operating expenses.
General and Administrative Expenses
During the three months ended September 30, 2026, general and administrative expenses decreased $5.3 million compared to the three months ended September 30, 2025. The decrease was due to decreases in various corporate level expenses during the three months ended September 30, 2026 as compared to the three months ended September 30, 2025.
Management Fee
During the three months ended September 30, 2026, the management fee increased $14.5 million compared to the three months ended September 30, 2025. The increase was due to a higher average NAV during the three months ended September 30, 2026 as compared to the three months ended September 30, 2025.
Performance Participation Allocation
During the three months ended September 30, 2026, the performance participation allocation expense increased $39.0 million compared to the three months ended September 30, 2025. The increase was the result of a higher total return for the three months ended September 30, 2026 compared to the three months ended September 30, 2025.
Impairment of Investments in Real Estate
During the three months ended September 30, 2026, impairments of investments in real estate increased $469.3 million compared to the three months ended September 30, 2025. During the three months ended September 30, 2026, we recognized an aggregate $496.7 million of impairment charges including (i) $453.7 million related to certain properties as a result of updates to the undiscounted cash flow assumptions, and (ii) $43.0 million related to certain held-for-sale real estate investments where their GAAP carrying amount exceeded their fair value, less estimated closing costs.
During the three months ended September 30, 2025, we recognized an aggregate $27.4 million of impairment charges including (i) $13.4 million related to certain properties as a result of updates to the undiscounted cash flow assumptions, primarily to account for a shorter hold period, and (ii) $14.0 million related to certain held-for-sale real estate investments where their GAAP carrying amount exceeded their fair value, less estimated closing costs.
Depreciation and Amortization
During the three months ended September 30, 2026, depreciation and amortization decreased $66.7 million compared to the three months ended September 30, 2025. The decrease was primarily driven by the impact of disposition activity from July 1, 2025 through September 30, 2026.
Income (Loss) from Unconsolidated Entities
During the three months ended September 30, 2026, income from unconsolidated entities increased $625.4 million compared to the three months ended September 30, 2025. The increase was primarily driven by (i) increases in the fair value of interest rate derivatives of $592.9 million and (ii) increases in unrealized gains in the fair value of unconsolidated entities carried at fair value of $94.0 million, partially offset by (iii) increases in interest expense of $52.0 million.
Income from Investments in Real Estate Debt
During the three months ended September 30, 2026, income from investments in real estate debt decreased $82.3 million compared to the three months ended September 30, 2025. The decrease was primarily attributable to net unrealized/realized losses of $16.9 million on our investments in real estate debt during the three months ended September 30, 2026, compared to net unrealized/realized gains of $34.8 million on our investments in real estate debt during the three months ended September 30, 2025, and a decrease of $30.6 million in interest income as a result of sales and repayments of loans and other investments in real estate debt.
Change in Net Assets of Consolidated Securitization Vehicles
During the three months ended September 30, 2026, the change in net assets of consolidated securitization vehicles decreased $8.0 million compared to the three months ended September 30, 2025. The decrease was primarily attributable to a decrease of $13.4 million in interest income as a result of sales of our investments in such securitization vehicles and repayments of the underlying loans within such securitization vehicles, partially offset by net unrealized/realized gains of $0.5 million during the three months ended September 30, 2026, compared to net unrealized/realized losses of $4.9 million during the three months ended September 30, 2025.
Income (Loss) from Interest Rate Derivatives
During the three months ended September 30, 2026, income from interest rate derivatives increased $278.7 million compared to the three months ended September 30, 2025. The increase was primarily attributable to unrealized gains related to the increase in the fair value of interest rate derivatives.
Net Gain on Dispositions of Real Estate
During the three months ended September 30, 2026, net gain on dispositions of real estate increased $33.2 million compared to the three months ended September 30, 2025. During the three months ended September 30, 2026, we recorded $366.1 million of net gains from the disposition of 65 rental housing properties, nine industrial properties and one office property. During the three months ended September 30, 2025, we recorded $332.9 million of net gains from the disposition of 24 rental housing properties, 17 industrial properties, three hospitality properties and one retail property.
Interest Expense, Net
During the three months ended September 30, 2026, net interest expense decreased $92.6 million compared to the three months ended September 30, 2025. The decrease was primarily due to lower outstanding borrowings, primarily resulting from real estate dispositions and the corresponding payoff of debt related to such dispositions from July 1, 2025 to September 30, 2026.
Gain (Loss) on Extinguishment of Debt
During the three months ended September 30, 2026, we had a net gain on extinguishment of debt of $17.6 million, primarily driven by the extinguishment of debt in connection with the sale of an office property and the related settlement of the associated loan obligation, partially offset by refinancing and disposition activity. During the three months ended September 30, 2025, we had a net loss on extinguishment of debt of $17.2 million, primarily driven by refinancing and disposition activity.
Other Expense
During the three months ended September 30, 2026, other expense decreased $0.2 million compared to the three months ended September 30, 2025. The decrease was primarily due to a decrease in portfolio-level corporate costs.
Results of Operations
The following table sets forth information regarding our consolidated results of operations for the nine months ended September 30, 2026 and 2025 ($ in thousands):
| Nine Months Ended September 30, | Change | ||||||||||||||||
| 2026 | 2025 | $ | |||||||||||||||
| Revenues | |||||||||||||||||
| Rental revenue | $ | 4,923,971 | $ | 5,322,192 | $ | (398,221) | |||||||||||
| Hospitality revenue | 414,611 | 396,714 | 17,897 | ||||||||||||||
| Other revenue | 252,135 | 278,091 | (25,956) | ||||||||||||||
| Total revenues | 5,590,717 | 5,996,997 | (406,280) | ||||||||||||||
| Expenses | |||||||||||||||||
| Rental property operating | 2,337,888 | 2,515,584 | (177,696) | ||||||||||||||
| Hospitality operating | 286,571 | 281,232 | 5,339 | ||||||||||||||
| General and administrative | 45,228 | 50,958 | (5,730) | ||||||||||||||
| Management fee | 530,115 | 502,074 | 28,041 | ||||||||||||||
| Performance participation allocation | 562,788 | 355,028 | 207,760 | ||||||||||||||
| Impairment of investments in real estate | 731,148 | 368,757 | 362,391 | ||||||||||||||
| Depreciation and amortization | 2,224,775 | 2,424,225 | (199,450) | ||||||||||||||
| Total expenses | 6,718,513 | 6,497,858 | 220,655 | ||||||||||||||
| Other income (expense) | |||||||||||||||||
| Income (loss) from unconsolidated entities | 459,125 | (887,816) | 1,346,941 | ||||||||||||||
| Income from investments in real estate debt | 220,541 | 408,928 | (188,387) | ||||||||||||||
| Change in net assets of consolidated securitization vehicles | 36,836 | 89,005 | (52,169) | ||||||||||||||
| Income (loss) from interest rate derivatives | 73,429 | (758,028) | 831,457 | ||||||||||||||
| Net gain on dispositions of real estate | 1,221,919 | 933,186 | 288,733 | ||||||||||||||
| Interest expense, net | (1,976,236) | (2,312,297) | 336,061 | ||||||||||||||
|
Loss on extinguishment of debt
|
(19,723) | (54,060) | 34,337 | ||||||||||||||
|
Other expense
|
(35,928) | (40,341) | 4,413 | ||||||||||||||
| Total other income (expense) | (20,037) | (2,621,423) | 2,601,386 | ||||||||||||||
| Net loss | $ | (1,147,833) | $ | (3,122,284) | $ | 1,974,451 | |||||||||||
| Net loss attributable to non-controlling interests in consolidated subsidiaries | $ | 135,706 | $ | 78,416 | $ | 57,290 | |||||||||||
| Net loss attributable to non-controlling interests in BREIT OP | 92,357 | 220,071 | (127,714) | ||||||||||||||
| Net loss attributable to BREIT stockholders | $ | (919,770) | $ | (2,823,797) | $ | 1,904,027 | |||||||||||
Rental Revenue
During the nine months ended September 30, 2026, rental revenue decreased $398.2 million as compared to the nine months ended September 30, 2025. The decrease can primarily be attributed to a $474.8 million decrease in Non-Same Property revenues due to the real estate dispositions we made from January 1, 2025 to September 30, 2026, partially offset by a $76.6 million increase in Same Property revenues. See "Same Property NOI" section for further details of the increase in Same Property revenues.
Hospitality Revenue
During the nine months ended September 30, 2026, hospitality revenue increased $17.9 million as compared to the nine months ended September 30, 2025. The increase can primarily be attributed to a $25.0 million increase in Same Property revenues, partially offset by a $7.1 million decrease in Non-Same Property revenues due to the real estate dispositions we made from January 1, 2025 to September 30, 2026. See "Same Property NOI" section for further details of the increase in Same Property revenues.
Other Revenue
During the nine months ended September 30, 2026, other revenue decreased $26.0 million as compared to the nine months ended September 30, 2025. The decrease can primarily be attributed to a $23.1 million decrease in Non-Same Property revenues due to the real estate dispositions we made from January 1, 2025 to September 30, 2026 and a $2.9 million decrease in Same Property revenues. See "Same Property NOI" section for further details of the decrease in Same Property revenues.
Rental Property Operating Expenses
During the nine months ended September 30, 2026, rental property operating expenses decreased $177.7 million as compared to the nine months ended September 30, 2025. The decrease can primarily be attributed to a $191.1 million decrease in Non-Same Property operating expenses due to the real estate dispositions we made from January 1, 2025 to September 30, 2026, partially offset by a $13.4 million increase in Same Property operating expenses. See "Same Property NOI" section for further details of the increase in Same Property operating expenses.
Hospitality Operating Expenses
During the nine months ended September 30, 2026, hospitality operating expenses increased $5.3 million as compared to the nine months ended September 30, 2025. The increase can primarily be attributed to a $17.0 million increase in Same Property hospitality operating expenses, partially offset by an $11.7 million decrease in Non-Same Property hospitality operating expenses due to the real estate dispositions we made from January 1, 2025 to September 30, 2026. See "Same Property NOI" section for further details of the increase in Same Property hospitality operating expenses.
General and Administrative Expenses
During the nine months ended September 30, 2026, general and administrative expenses decreased $5.7 million compared to the nine months ended September 30, 2025. The decrease was due to a decrease in various corporate level expenses during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.
Management Fee
During the nine months ended September 30, 2026, the management fee increased $28.0 million compared to the nine months ended September 30, 2025. The increase was due to a higher average NAV during the nine months ended September 30, 2026 as compared to the nine months ended September 30, 2025.
Performance Participation Allocation
During the nine months ended September 30, 2026, the performance participation allocation expense increased $207.8 million compared to the nine months ended September 30, 2025. The increase was the result of a higher total return for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025.
Impairment of Investments in Real Estate
During the nine months ended September 30, 2026, impairments of investments in real estate increased $362.4 million compared to the nine months ended September 30, 2025. During the nine months ended September 30, 2026, we recognized an aggregate $731.1 million of impairment charges including (i) $621.9 million related to certain properties as a result of updates to the undiscounted cash flow assumptions, primarily to account for a shorter hold period, and (ii) $109.2 million related to certain held-for-sale real estate investments where their GAAP carrying amount exceeded their fair value, less estimated closing costs.
During the nine months ended September 30, 2025, we recognized an aggregate $368.8 million of impairment charges including (i) $285.5 million related to certain properties as a result of updates to the undiscounted cash flow assumptions, primarily to account for a shorter hold period, and (ii) $83.3 million related to certain held-for-sale real estate investments where their GAAP carrying amount exceeded their fair value, less estimated closing costs.
Depreciation and Amortization
During the nine months ended September 30, 2026, depreciation and amortization decreased $199.5 million compared to the nine months ended September 30, 2025. The decrease was primarily driven by the impact of disposition activity from January 1, 2025 through September 30, 2026.
Income (Loss) from Unconsolidated Entities
During the nine months ended September 30, 2026, we had income from unconsolidated entities of $459.1 million primarily attributable to unrealized gains related to the change in the fair value of interest rate derivatives. During the nine months ended September 30, 2025, we had a loss from unconsolidated entities of $887.8 million, driven by our QTS Data Centers investment, attributable to unrealized losses related to the change in the fair value of interest rate derivatives, depreciation and amortization, and one-time buyout costs.
Income from Investments in Real Estate Debt
During the nine months ended September 30, 2026, income from investments in real estate debt decreased $188.4 million compared to the nine months ended September 30, 2025. The decrease was primarily attributable to net unrealized/realized losses of $7.7 million on our investments in real estate debt and related derivatives during the nine months ended September 30, 2026, compared to net unrealized/realized gains of $74.4 million on our investments in real estate debt and related derivatives during the nine months ended September 30, 2025, combined with a decrease of $110.6 million in interest income as a result of sales and repayments of loans and other investments in real estate debt.
Change in Net Assets of Consolidated Securitization Vehicles
During the nine months ended September 30, 2026, the change in net assets of consolidated securitization vehicles decreased $52.2 million compared to the nine months ended September 30, 2025. The decrease was primarily attributable to a decrease of interest income as a result of sales of our investments in such securitization vehicles and repayments of the underlying loans within such securitization vehicles.
Income (Loss) from Interest Rate Derivatives
During the nine months ended September 30, 2026, income from interest rate derivatives increased $831.5 million compared to the nine months ended September 30, 2025. The increase was primarily attributable to unrealized gains related to the increase in the fair value of interest rate derivatives.
Net Gain on Dispositions of Real Estate
During the nine months ended September 30, 2026, net gain on dispositions of real estate increased $288.7 million compared to the nine months ended September 30, 2025. During the nine months ended September 30, 2026, we recorded $1.2 billion of net gains from the disposition of 111 rental housing properties, 79 self storage properties, 71 industrial properties, three office properties, and one retail property. During the nine months ended September 30, 2025, we recorded $933.2 million of net gains from the disposition of 67 industrial properties, 61 rental housing properties, four retail properties, and four hospitality properties.
Interest Expense, Net
During the nine months ended September 30, 2026, net interest expense decreased $336.1 million compared to the nine months ended September 30, 2025. The decrease was primarily due to lower outstanding borrowings, primarily resulting from real estate dispositions from January 1, 2025 to September 30, 2026.
Loss on Extinguishment of Debt
During the nine months ended September 30, 2026, we had a net loss on extinguishment of debt of $19.7 million, primarily driven by sales and refinancing activity, partially offset by a gain on extinguishment of debt in connection with the sale of an office property and the related settlement of the associated loan obligation. During the nine months ended September 30, 2025, we had a net loss on extinguishment of debt of $54.1 million, primarily driven by refinancing and disposition activity.
Other Expense
During the nine months ended September 30, 2026, other expense decreased $4.4 million compared to the nine months ended September 30, 2025. The decrease was primarily due to decreases in portfolio-level corporate costs.
Same Property NOI
Net Operating Income ("NOI") is a supplemental non-GAAP measure of our property operating results that we believe is meaningful because it enables management to evaluate the impact of occupancy, rents, leasing activity, and other controllable property operating results at our real estate. We define NOI as operating revenues less operating expenses, which exclude (i) impairment of investments in real estate, (ii) depreciation and amortization, (iii) straight-line rental income and expense, (iv) amortization of above- and below-market lease intangibles, (v) amortization of accumulated unrealized gains on derivatives previously recognized in other comprehensive income, (vi) lease termination fees, (vii) portfolio-level corporate costs, (viii) other non-property related revenue and expense items such as (a) general and administrative expenses, (b) management fee, (c) performance participation allocation, (d) incentive compensation awards, (e) income (loss) from investments in real estate debt, (f) change in net assets of consolidated securitization vehicles, (g) income (loss) from interest rate derivatives, (h) net gain on dispositions of real estate, (i) interest expense, net, (j) gain (loss) on extinguishment of debt, (k) other income (expense), and (l) buyout costs and (ix) similar adjustments for NOI attributable to non-controlling interests and unconsolidated entities.
We evaluate our consolidated results of operations on a Same Property basis, which allows us to analyze our property operating results excluding acquisitions and dispositions during the periods under comparison. Properties in our portfolio are considered Same Property if they were owned for the full periods presented, otherwise they are considered Non-Same Property. Recently developed properties are not included in Same Property results until the properties have achieved stabilization for both full periods presented. We define stabilization for a property as the earlier of (i) achieving 90% occupancy, (ii) 12 months after receiving a certificate of occupancy, or (iii) for Data Centers, 12 months after receiving a certificate of occupancy and greater than 50% of its critical IT capacity has been built. Certain assets are excluded from Same Property results and are considered Non-Same Property, including (i) properties held-for-sale, (ii) properties that are being redeveloped, (iii) properties identified for future sale, and (iv) interests in unconsolidated entities under contract for sale with a hard deposit or other factors ensuring the buyer's performance. We do not consider our investments in the real estate debt segment to be Same Property.
Same Property NOI assists in eliminating disparities in net income due to the acquisition, disposition, development, or redevelopment of properties during the periods presented, and therefore we believe it provides a meaningful performance measure for the comparison of the operating performance of our properties, which we believe is useful to investors. Our Same Property NOI may not be comparable to that of other companies and should not be considered to be more relevant or accurate in evaluating our operating performance than our GAAP net income (loss).
For the three months ended September 30, 2026 and 2025, our Same Property portfolio consisted of 668 rental housing, 2,847 industrial, 50 net lease, 57 data center, 240 hospitality, 59 retail, and 11 office properties. The following table reconciles GAAP net loss to Same Property NOI for the three months ended September 30, 2026 and 2025 ($ in thousands):
| Three Months Ended September 30, | Change | ||||||||||||||||
| 2026 | 2025 | $ | |||||||||||||||
|
Net loss
|
$ | (296,125) | $ | (713,517) | $ | 417,392 | |||||||||||
| Adjustments to reconcile to Same Property NOI | |||||||||||||||||
| General and administrative | 12,674 | 17,958 | (5,284) | ||||||||||||||
| Management fee | 181,275 | 166,757 | 14,518 | ||||||||||||||
| Performance participation allocation | 163,016 | 124,029 | 38,987 | ||||||||||||||
| Impairment of investments in real estate | 496,681 | 27,386 | 469,295 | ||||||||||||||
| Depreciation and amortization | 721,775 | 788,475 | (66,700) | ||||||||||||||
| (Income) loss from unconsolidated entities | (475,615) | 149,792 | (625,407) | ||||||||||||||
| Income from investments in real estate debt | (60,098) | (142,396) | 82,298 | ||||||||||||||
| Change in net assets of consolidated securitization vehicles | (10,593) | (18,613) | 8,020 | ||||||||||||||
| (Income) loss from interest rate derivatives | (119,469) | 159,269 | (278,738) | ||||||||||||||
| Net gain on dispositions of real estate | (366,087) | (332,883) | (33,204) | ||||||||||||||
| Interest expense, net | 676,137 | 768,735 | (92,598) | ||||||||||||||
| (Gain) loss on extinguishment of debt | (17,607) | 17,186 | (34,793) | ||||||||||||||
| Other expense | 14,182 | 14,332 | (150) | ||||||||||||||
|
Portfolio-level corporate costs(1)
|
152,761 | 133,653 | 19,108 | ||||||||||||||
|
Incentive compensation awards(2)
|
15,741 | 9,621 | 6,120 | ||||||||||||||
| Lease termination fees | (234) | (273) | 39 | ||||||||||||||
| Amortization of above and below-market lease intangibles | (6,388) | (8,690) | 2,302 | ||||||||||||||
| Straight-line rental income and expense | (31,767) | (31,289) | (478) | ||||||||||||||
| NOI from unconsolidated entities | 372,808 | 280,206 | 92,602 | ||||||||||||||
| NOI attributable to non-controlling interests in consolidated joint ventures | (98,209) | (103,613) | 5,404 | ||||||||||||||
| NOI attributable to BREIT stockholders | 1,324,858 | 1,306,125 | 18,733 | ||||||||||||||
| Less: Non-Same Property NOI attributable to BREIT stockholders | 129,932 | 163,072 | (33,140) | ||||||||||||||
| Same Property NOI attributable to BREIT stockholders | $ | 1,194,926 | $ | 1,143,053 | $ | 51,873 | |||||||||||
(1) Portfolio-level corporate costs include accounting and tax services, legal and professional fees, treasury services, asset management fees, income and franchise taxes, casualty losses, and other non-operating expenses incurred at the portfolio level.
(2) Included in rental property operating and hospitality operating expense on our Condensed Consolidated Statements of Operations.
The following table details the components of Same Property NOI for the three months ended September 30, 2026 and 2025 ($ in thousands):
| Three Months Ended September 30, | Change | |||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
| Revenues | ||||||||||||||||||||||||||
| Rental revenue | $ | 1,472,104 | $ | 1,444,520 | $ | 27,584 | 2% | |||||||||||||||||||
| Hospitality revenue | 132,861 | 121,432 | 11,429 | 9% | ||||||||||||||||||||||
| Other revenue | 63,664 | 66,056 | (2,392) | (4)% | ||||||||||||||||||||||
| Total revenues | 1,668,629 | 1,632,008 | 36,621 | 2% | ||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Rental property operating | 564,440 | 564,881 | (441) | -% | ||||||||||||||||||||||
| Hospitality operating | 92,868 | 85,775 | 7,093 | 8% | ||||||||||||||||||||||
| Total expenses | 657,308 | 650,656 | 6,652 | 1% | ||||||||||||||||||||||
|
Same Property NOI attributable to non-controlling interests in consolidated joint ventures
|
(95,682) | (99,226) | 3,544 | (4)% | ||||||||||||||||||||||
| Consolidated Same Property NOI attributable to BREIT stockholders | 915,639 | 882,126 | 33,513 | 4% | ||||||||||||||||||||||
| Same Property NOI from unconsolidated entities | 279,287 | 260,927 | 18,360 | 7% | ||||||||||||||||||||||
| Same Property NOI attributable to BREIT stockholders | $ | 1,194,926 | $ | 1,143,053 | $ | 51,873 | 5% | |||||||||||||||||||
Same Property - Rental Revenue
Same Property rental revenue increased $27.6 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase was due to a $21.2 million increase in base rental revenue, a $5.6 million increase in tenant reimbursement income as a result of higher operating expenses, and a $0.8 million decrease in our bad debt reserve. Our bad debt reserve represents the amount of rental revenue we anticipate we will not be able to collect from our tenants.
The following table details the changes in base rental revenue period over period ($ in thousands):
| Three Months Ended September 30, |
Change
|
||||||||||||||||||||||||||||
|
Change in Base Rental Revenue |
Change in Occupancy Rate |
Change in Average Effective Annual Base Rent Per Leased Square Foot/Unit |
|||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| Rental Housing | $ | 930,272 | $ | 932,780 | $ | (2,508) | (1)% | +1% | |||||||||||||||||||||
| Industrial | 220,715 | 202,052 | 18,663 | +2% | +7% | ||||||||||||||||||||||||
| Net Lease | 123,099 | 120,685 | 2,414 | -% | +2% | ||||||||||||||||||||||||
| Retail | 36,692 | 35,574 | 1,118 | -% | +3% | ||||||||||||||||||||||||
| Office | 30,527 | 30,156 | 371 | -% | +1% | ||||||||||||||||||||||||
| Data Centers | 11,490 | 10,335 | 1,155 | -% | +11% | ||||||||||||||||||||||||
| Total base rental revenue | $ | 1,352,795 | $ | 1,331,582 | $ | 21,213 | |||||||||||||||||||||||
Same Property - Hospitality Revenue
Same Property hospitality revenue increased $11.4 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase in hospitality revenue was primarily due to increases in average daily rate and occupancy and an increase in food and beverage revenue at our hotels during three months ended September 30, 2026.
Same Property - Other Revenue
Same Property other revenue decreased $2.4 million for the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The decrease was primarily due to decreased ancillary and other income at our rental housing properties during the three months ended September 30, 2026.
Same Property - Rental Property Operating Expenses
Same Property rental property operating expenses decreased $0.4 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The decrease in rental property operating expenses was primarily the result of decreased real estate taxes and general operating expenses at our rental housing properties during the three months ended September 30, 2026.
Same Property - Hospitality Operating Expenses
Same Property hospitality operating expenses increased $7.1 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase in hospitality operating expenses was primarily the result of increased general operating expenses resulting from increased occupancy at our hotels during the three months ended September 30, 2026.
Same Property NOI from Unconsolidated Entities
Same Property NOI from unconsolidated entities increased $18.4 million during the three months ended September 30, 2026 compared to the three months ended September 30, 2025. The increase is primarily due to additional base rent associated with increased occupancy at our QTS Data Centers investment.
For the nine months ended September 30, 2026 and 2025, our Same Property portfolio consisted of 667 rental housing, 2,840 industrial, 53 data center, two net lease, 240 hospitality, 59 retail, and 11 office properties. The following table reconciles GAAP net loss to Same Property NOI for the nine months ended September 30, 2026 and 2025 ($ in thousands):
| Nine Months Ended September 30, | Change | ||||||||||||||||
| 2026 | 2025 | $ | |||||||||||||||
|
Net loss
|
$ | (1,147,833) | $ | (3,122,284) | $ | 1,974,451 | |||||||||||
| Adjustments to reconcile to Same Property NOI | |||||||||||||||||
| General and administrative | 45,228 | 50,958 | (5,730) | ||||||||||||||
| Management fee | 530,115 | 502,074 | 28,041 | ||||||||||||||
| Performance participation allocation | 562,788 | 355,028 | 207,760 | ||||||||||||||
| Impairment of investments in real estate | 731,148 | 368,757 | 362,391 | ||||||||||||||
| Depreciation and amortization | 2,224,775 | 2,424,225 | (199,450) | ||||||||||||||
| (Income) loss from unconsolidated entities | (459,125) | 887,816 | (1,346,941) | ||||||||||||||
| Income from investments in real estate debt | (220,541) | (408,928) | 188,387 | ||||||||||||||
| Change in net assets of consolidated securitization vehicles | (36,836) | (89,005) | 52,169 | ||||||||||||||
| (Income) loss from interest rate derivatives | (73,429) | 758,028 | (831,457) | ||||||||||||||
| Net gain on dispositions of real estate | (1,221,919) | (933,186) | (288,733) | ||||||||||||||
| Interest expense, net | 1,976,236 | 2,312,297 | (336,061) | ||||||||||||||
| Loss on extinguishment of debt | 19,723 | 54,060 | (34,337) | ||||||||||||||
| Other expense | 35,928 | 40,341 | (4,413) | ||||||||||||||
|
Portfolio-level corporate costs(1)
|
469,099 | 463,857 | 5,242 | ||||||||||||||
|
Incentive compensation awards(2)
|
47,427 | 44,680 | 2,747 | ||||||||||||||
| Lease termination fees | (416) | (3,139) | 2,723 | ||||||||||||||
| Amortization of above and below-market lease intangibles | (20,560) | (27,977) | 7,417 | ||||||||||||||
| Straight-line rental income and expense | (102,592) | (100,272) | (2,320) | ||||||||||||||
| NOI from unconsolidated entities | 1,063,206 | 801,416 | 261,790 | ||||||||||||||
| NOI attributable to non-controlling interests in consolidated subsidiaries | (339,517) | (345,167) | 5,650 | ||||||||||||||
| NOI attributable to BREIT stockholders | 4,082,905 | 4,033,579 | 49,326 | ||||||||||||||
| Less: Non-Same Property NOI attributable to BREIT stockholders | 530,662 | 594,440 | (63,778) | ||||||||||||||
| Same Property NOI attributable to BREIT stockholders | $ | 3,552,243 | $ | 3,439,139 | $ | 113,104 | |||||||||||
(1) Portfolio-level corporate costs include accounting and tax services, legal and professional fees, treasury services, asset management fees, income and franchise taxes, casualty losses, and other non-operating expenses incurred at the portfolio level.
(2) Included in rental property operating and hospitality operating expense on our Condensed Consolidated Statements of Operations.
The following table details the components of Same Property NOI for the nine months ended September 30, 2026 and 2025 ($ in thousands):
| Nine Months Ended September 30, | Change | |||||||||||||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||||||||||||
|
Revenues
|
||||||||||||||||||||||||||
| Rental revenue | $ | 4,457,760 | $ | 4,381,174 | $ | 76,586 | 2% | |||||||||||||||||||
| Hospitality revenue | 414,394 | 389,408 | 24,986 | 6% | ||||||||||||||||||||||
| Other revenue | 173,912 | 176,849 | (2,937) | (2)% | ||||||||||||||||||||||
| Total revenues | 5,046,066 | 4,947,431 | 98,635 | 2% | ||||||||||||||||||||||
|
Expenses
|
||||||||||||||||||||||||||
| Rental property operating | 1,635,454 | 1,622,053 | 13,401 | 1% | ||||||||||||||||||||||
| Hospitality operating | 277,749 | 260,774 | 16,975 | 7% | ||||||||||||||||||||||
| Total expenses | 1,913,203 | 1,882,827 | 30,376 | 2% | ||||||||||||||||||||||
|
Same Property NOI attributable to non-controlling interests in consolidated subsidiaries
|
(327,903) | (326,496) | (1,407) | -% | ||||||||||||||||||||||
|
Consolidated Same Property NOI attributable to BREIT stockholders
|
2,804,960 | 2,738,108 | 66,852 | 2% | ||||||||||||||||||||||
|
Same Property NOI from unconsolidated entities
|
747,283 | 701,031 | 46,252 | 7% | ||||||||||||||||||||||
| Same Property NOI attributable to BREIT stockholders | $ | 3,552,243 | $ | 3,439,139 | $ | 113,104 | 3% | |||||||||||||||||||
Same Property - Rental Revenue
Same Property rental revenue increased $76.6 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase was due to a $58.5 million increase in base rental revenue, a $15.3 million increase in tenant reimbursement income as a result of higher operating expenses, and a $2.8 million decrease in our bad debt reserve. Our bad debt reserve represents the amount of rental revenue we anticipate we will not be able to collect from our tenants.
The following table details the changes in base rental revenue period over period ($ in thousands):(1)
| Nine Months Ended September 30, |
Change
|
||||||||||||||||||||||||||||
|
Change in Base Rental Revenue |
Change in Occupancy Rate |
Change in Average Effective Annual Base Rent Per Leased Square Foot/Unit |
|||||||||||||||||||||||||||
| 2026 | 2025 | ||||||||||||||||||||||||||||
| Rental Housing | $ | 2,848,285 | $ | 2,849,420 | $ | (1,135) | (1)% | +1% | |||||||||||||||||||||
| Industrial | 640,935 | 596,560 | 44,375 | +1% | +6% | ||||||||||||||||||||||||
| Net Lease | 367,528 | 360,322 | 7,206 | -% | +2% | ||||||||||||||||||||||||
| Retail | 110,402 | 106,994 | 3,408 | -% | +3% | ||||||||||||||||||||||||
| Office | 91,658 | 89,221 | 2,437 | -% | +3% | ||||||||||||||||||||||||
| Data Centers | 33,106 | 30,891 | 2,215 | -% | +7% | ||||||||||||||||||||||||
| Total base rental revenue | $ | 4,091,914 | $ | 4,033,408 | $ | 58,506 | |||||||||||||||||||||||
(1) Excludes our investments in unconsolidated entities.
Same Property - Hospitality Revenue
Same Property hospitality revenue increased $25.0 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase in hospitality revenue was primarily due to increases in average daily rate and occupancy and an increase in food and beverage revenue at our hotels during the nine months ended September 30, 2026.
Same Property - Other Revenue
Same Property other revenue decreased $2.9 million for the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The decrease was primarily due to decreased ancillary income at our rental housing properties during the nine months ended September 30, 2026.
Same Property - Rental Property Operating Expenses
Same Property rental property operating expenses increased $13.4 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase in rental property operating expenses was primarily the result of increased real estate taxes and general operating expenses at our rental housing and industrial properties during the nine months ended September 30, 2026.
Same Property - Hospitality Operating Expenses
Same Property hospitality operating expenses increased $17.0 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase in hospitality operating expenses was primarily the result of increased food and beverage and other operating expenses resulting from increased occupancy at our hotels during the nine months ended September 30, 2026.
Same Property NOI from Unconsolidated Entities
Same Property NOI from unconsolidated entities increased $46.3 million during the nine months ended September 30, 2026 compared to the nine months ended September 30, 2025. The increase is primarily due to additional base rent associated with increased occupancy at our QTS Data Centers investment.
Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution
We believe Funds from Operations ("FFO") is a meaningful non-GAAP supplemental measure of our operating results. Our condensed consolidated financial statements are presented using historical cost accounting which, among other things, requires depreciation of real estate investments. As a result, our operating results imply that the value of our real estate investments have decreased over time. However, we believe that the value of our real estate investments will fluctuate over time based on market conditions and, as such, depreciation under historical cost accounting may be less informative as a measure of our performance. FFO is an operating measure defined by the National Association of Real Estate Investment Trusts ("NAREIT") that is broadly used in the REIT industry. FFO, as defined by NAREIT and presented below, is calculated as net income or loss (computed in accordance with GAAP), excluding (i) depreciation and amortization, (ii) impairment of investments in real estate, (iii) net gains or losses from sales of real estate, (iv) net gains or losses from change in control, and (v) similar adjustments for non-controlling interests and unconsolidated entities.
We also believe that Adjusted FFO ("AFFO") is an additional meaningful non-GAAP supplemental measure of our operating results. AFFO further adjusts FFO to reflect the performance of our portfolio by adjusting for items we believe are not directly attributable to our operations. Our adjustments to FFO to arrive at AFFO include removing the impact of (i) the performance participation allocation to our Special Limited Partner or other incentive compensation awards that are based on our Net Asset Value, which includes unrealized gains and losses not recorded in GAAP net income (loss), and that are paid in shares or BREIT OP units, even if subsequently repurchased by us, (ii) gains or losses on extinguishment of debt, (iii) unrealized gains or losses on investments in real estate debt and other investments, (iv) unrealized gains or losses on derivatives, (v) amortization of accumulated unrealized gains on derivatives previously recognized in other comprehensive income, (vi) straight-line rental income and expense, (vii) amortization of deferred financing costs, (viii) amortization of restricted stock awards, (ix) amortization of mortgage premium/discount, (x) organization costs, (xi) severance costs, (xii) buyout costs, (xiii) net forfeited investment deposits, (xiv) amortization of above- and below-market lease intangibles, (xv) gain or loss on involuntary conversion, (xvi) settlement costs, (xvii) amortization of non-real estate assets, and adding (xviii) proceeds from interest rate contract receivables, and (xix) similar adjustments for non-controlling interests and unconsolidated entities.
We also believe that Funds Available for Distribution ("FAD") is an additional meaningful non-GAAP supplemental measure of our operating results. FAD provides useful information for considering our operating results and certain other items relative to the amount of our distributions, and we believe is therefore meaningful to stockholders. FAD is calculated as AFFO adjusted for (i) management fees paid in shares or BREIT OP units, even if subsequently repurchased by us, (ii) recurring tenant improvements, leasing commissions, and other capital expenditures, (iii) stockholder servicing fees paid during the period, (iv) realized gains or losses on investments in real estate debt and other investments, and (v) similar adjustments for non-controlling interests and unconsolidated entities. FAD is not indicative of cash available to fund our cash needs and does not represent cash flows from operating activities in accordance with GAAP, as FAD is adjusted for stockholder servicing fees and recurring tenant improvements, leasing commissions, and other capital expenditures, which are not considered when determining cash flows from operations. Furthermore, FAD excludes (i) adjustments for working capital items and (ii) amortization of discounts and premiums on investments in real estate debt. Cash flows from operating activities in accordance with GAAP would generally be adjusted for such items.
FFO, AFFO, and FAD should not be considered more relevant or accurate than GAAP net income (loss) in evaluating our operating performance. In addition, FFO, AFFO, and FAD should not be considered as alternatives to net income (loss) as indications of our performance or as alternatives to cash flows from operating activities as indications of our liquidity, but rather should be reviewed in conjunction with these and other GAAP measurements. Further, FFO, AFFO, and FAD are not intended to be used as liquidity measures indicative of cash flow available to fund our cash needs, including our ability to make distributions to our stockholders. In addition, our methodology for calculating AFFO and FAD may differ from the methodologies employed by other companies to calculate the same or similar supplemental performance measures, and accordingly, our reported AFFO and FAD may not be comparable to the AFFO and FAD reported by other companies.
The following table presents a reconciliation of net loss attributable to BREIT stockholders and OP unitholders to FFO, AFFO and FAD attributable to BREIT stockholders and OP unitholders ($ in thousands):
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 |
2025(1)
|
2026 |
2025(1)
|
||||||||||||||||||||
| Net loss attributable to BREIT stockholders | $ | (160,890) | $ | (638,682) | $ | (919,770) | $ | (2,823,797) | |||||||||||||||
|
Net loss attributable to OP unitholders
|
(18,060) | (56,671) | (92,357) | (220,071) | |||||||||||||||||||
|
Net loss attributable to BREIT stockholders and OP unitholders
|
(178,950) | (695,353) | (1,012,127) | (3,043,868) | |||||||||||||||||||
| Adjustments to arrive at FFO: | |||||||||||||||||||||||
| Depreciation and amortization | 721,775 | 788,475 | 2,224,775 | 2,424,225 | |||||||||||||||||||
| Impairment of investments in real estate | 496,681 | 27,386 | 731,148 | 368,757 | |||||||||||||||||||
| Net gain on dispositions of real estate | (366,087) | (332,883) | (1,221,919) | (933,186) | |||||||||||||||||||
| Net gain on change in control | (11,791) | (1,964) | (8,468) | (26,144) | |||||||||||||||||||
|
Allocable share of adjustments related to unconsolidated entities
|
214,291 | 128,988 | 570,209 | 343,694 | |||||||||||||||||||
| Amount attributable to non-controlling interests for above adjustments | (156,754) | (55,897) | (294,850) | (220,314) | |||||||||||||||||||
|
FFO attributable to BREIT stockholders and OP unitholders
|
719,165 | (141,248) | 988,768 | (1,086,836) | |||||||||||||||||||
| Adjustments to arrive at AFFO: | |||||||||||||||||||||||
| Performance participation allocation | 163,016 | 124,029 | 562,788 | 355,028 | |||||||||||||||||||
| Incentive compensation awards | 19,616 | 12,690 | 56,645 | 52,636 | |||||||||||||||||||
| (Gain) loss on extinguishment of debt | (17,607) | 17,186 | 19,723 | 54,060 | |||||||||||||||||||
|
Unrealized losses (gains) on investments in real estate debt and other investments(1)
|
11,998 | (31,315) | (1,399) | (121,830) | |||||||||||||||||||
|
Unrealized (gains) losses on derivatives(1)
|
(115,112) | 160,004 | (64,759) | 769,275 | |||||||||||||||||||
| Straight-line rental income and expense | (38,950) | (36,608) | (119,219) | (102,189) | |||||||||||||||||||
| Amortization of deferred financing costs | 44,562 | 51,771 | 137,122 | 160,077 | |||||||||||||||||||
| Amortization of restricted stock awards | 300 | 300 | 900 | 900 | |||||||||||||||||||
|
Other(2)
|
2,499 | 6,720 | 203 | 33,642 | |||||||||||||||||||
|
Allocable share of adjustments related to unconsolidated entities
|
(557,110) | 112,766 | (623,629) | 817,350 | |||||||||||||||||||
|
Amount attributable to non-controlling interests for above adjustments
|
167 | 3,082 | 3,341 | 6,172 | |||||||||||||||||||
|
AFFO attributable to BREIT stockholders and OP unitholders
|
232,544 | 279,377 | 960,484 | 938,285 | |||||||||||||||||||
| Adjustments to arrive at FAD: | |||||||||||||||||||||||
| Management fee | 181,275 | 166,757 | 530,115 | 502,074 | |||||||||||||||||||
|
Recurring tenant improvements, leasing commissions, and other capital expenditures(3)
|
(204,543) | (204,271) | (483,978) | (496,582) | |||||||||||||||||||
| Stockholder servicing fees | (38,673) | (39,286) | (114,797) | (119,281) | |||||||||||||||||||
| Realized losses on investments in real estate debt and other investments | 2,972 | 2,244 | 3,204 | 38,585 | |||||||||||||||||||
|
Allocable share of adjustments related to unconsolidated entities
|
(36,654) | (27,693) | (94,359) | (74,285) | |||||||||||||||||||
|
Amount attributable to non-controlling interests for above adjustments
|
16,351 | 15,561 | 29,290 | 31,552 | |||||||||||||||||||
|
FAD attributable to BREIT stockholders and OP unitholders
|
$ | 153,272 | $ | 192,689 | $ | 829,959 | $ | 820,348 | |||||||||||||||
(1)The prior period has been recast to present unrealized (gains) losses on investments in real estate debt and other investments and unrealized losses on derivatives in a consistent manner with the current period presentation.
(2)Other adjustments to arrive at AFFO for the three and nine months ended September 30, 2026 and 2025 primarily include severance costs, amortization of above-and-below market lease intangibles, forfeited investment deposits, amortization of mortgage premium/discount, and amortization of accumulated unrealized gains on derivatives previously recognized in other comprehensive income.
(3)Recurring tenant improvements and leasing commissions are generally related to second-generation leases and other capital expenditures required to maintain our investments. Other capital expenditures exclude projects that we believe will enhance the value of our investments.
Net Asset Value
Our board of directors, including a majority of our independent directors, has adopted valuation guidelines that contain a comprehensive set of methodologies to be used by our Adviser in connection with our NAV calculation. These guidelines are designed to produce a fair and accurate estimate of the price that would be received for our investments in an arm's-length transaction between a willing buyer and a willing seller in possession of all material information about our investments.
The calculation of our NAV is intended to be a calculation of the fair value of our assets less our outstanding liabilities as described below and differs materially from the book value of our equity reflected in our financial statements. As a public company, we are required to issue financial statements based on historical cost determined in accordance with GAAP. To calculate our NAV for the purpose of establishing a purchase and repurchase price for our shares, we have adopted a model, as explained below, that adjusts the value of our assets and liabilities from historical cost to fair value generally in accordance with the GAAP principles set forth in FASB Accounting Standards Codification Topic 820, Fair Value Measurements. Our Adviser calculates the fair value of our real estate properties monthly based in part on values provided by third party independent appraisers, and such calculations are reviewed by an independent valuation advisor as further discussed below.
Because these fair value calculations involve significant professional judgment in the application of both observable and unobservable attributes, the calculated fair value of our assets may differ from their actual realizable value or future fair value. While we believe our NAV calculation methodologies are consistent with standard industry practices, there is no rule or regulation that requires us to calculate NAV in a certain way. As a result, other REITs and other real estate investors may use different methodologies or assumptions to determine NAV. In addition, NAV is not a measure determined under GAAP and the valuations of, and certain adjustments made to, our assets and liabilities used in the determination of NAV differs materially from comparable historical cost amounts determined in accordance with GAAP. You should not consider NAV to be equivalent to stockholders' equity or any other measure determined in accordance with GAAP.
The following valuation methods are used for purposes of calculating the significant components of our NAV:
•Consolidated properties are initially valued at cost, which we expect to represent fair value at the time of acquisition. Subsequently, consolidated properties are primarily valued using the discounted cash flow methodology (the "Income Approach"), whereby a property's value is calculated by discounting the estimated cash flows and the anticipated terminal value of the subject property by the assumed new buyer's normalized weighted average cost of capital for the subject property. Consistent with industry practices, the Income Approach also incorporates subjective judgments regarding comparable rental and operating expense data, capitalization or discount rate, and projections of future rent and expenses based on appropriate evidence as well as the residual value of the asset as components in determining value. Other methodologies that may also be used to value properties include Sales Comparisons and the Replacement Cost Approaches. We believe the discount rate and exit capitalization rate are the key assumptions utilized in discounted cash flow methodology (the Income Approach). Below the tables that set forth our NAV calculation is a sensitivity analysis of the weighted average discount rates and exit capitalization rates for our property investments.
•Investments in real estate debt consist of CMBS and RMBS, which are securities backed by one or more mortgage loans secured by real estate assets, as well as corporate bonds, term loans, mortgage loans, mezzanine loans, and other investments in debt issued by real estate-related companies or secured by real estate assets. The Company generally determines the fair value of its investments in real estate debt by utilizing third party pricing service providers whenever available. In determining the fair value of a particular investment, pricing service providers may use broker-dealer quotations, reported trades or valuation estimates from their internal pricing models. The pricing service providers' internal models for securities such as real estate debt generally consider the attributes applicable to a particular class of the security (e.g., credit rating, seniority), current market data, and estimated cash flows for each security, and incorporate specific collateral performance, as applicable. Certain of the Company's investments in real estate debt, such as mortgage loans, mezzanine loans and other investments, are unlikely to have readily available market quotations. In such cases, the Company will generally determine the initial value based on the acquisition price of such investment if acquired by the Company or the par value of such investment if originated by the Company. Following the initial measurements, the Company engages third party service providers to perform valuations for such investments. The service providers will determine fair value by utilizing or reviewing certain of the following (i) market yield data, (ii) discounted cash flow modeling, (iii) collateral asset performance, (iv) local or macro real estate performance, (v) capital market conditions, (vi) debt yield or loan-to-value ratios, and (vii) borrower financial condition and performance. Refer to the "Fair Value Measurements" section of Note 2 to our condensed consolidated financial statements for additional details on the Company's investments in real estate debt.
•The values of our mortgage loans, secured term loans, secured revolving credit facilities, secured financings on investments in real estate debt, and unsecured revolving credit facilities (collectively, "Debt") are estimated by modeling the cash flows required by the Company's debt agreements and discounting them back to the present value using an estimated market yield. Additionally, current market rates and conditions are considered by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. The Company utilizes third party service providers to perform these valuations.
•The Company separately values the assets and liabilities of the investments in unconsolidated entities. To determine the fair value of the real estate assets of the investments in unconsolidated entities, the Company utilizes a discounted cash flow methodology or market comparable methodology, taking into consideration various factors including discount rate, exit capitalization rate and multiples of comparable companies. The Company utilizes third party service providers to perform valuations of the indebtedness of the investments in unconsolidated entities. The fair value of the indebtedness of the investments in unconsolidated entities is determined by modeling the cash flows required by the debt agreements and discounting them back to the present value using weighted average cost of capital. Additionally, current market rates and conditions are considered by evaluating similar borrowing agreements with comparable loan-to-value ratios and credit profiles. After the fair value of the assets and liabilities are determined, the Company applies its ownership interest to the net asset value and reflects this amount as its investments in unconsolidated entities at fair value.
NAV and NAV Per Share Calculation
Each share class has an undivided interest in our assets and liabilities, other than class-specific liabilities (including the management fee paid to the Adviser, stockholder servicing fees paid to the Dealer Manager and the performance participation allocation paid to the Special Limited Partner). In accordance with the valuation guidelines, our NAV per share for each share class as of the last calendar day of each month is calculated using a process that reflects several components, including the estimated fair value of (1) each of our properties (including the DST Properties), (2) our investments in real estate debt, (3) our investments in unconsolidated entities, (4) our mortgage loans, secured term loans, secured revolving credit facilities, secured financings on investments in real estate debt, and unsecured revolving credit facilities, and (5) our other assets and liabilities.
At the end of each month, our change in NAV for each share class is calculated as follows:
•Shares are issued for subscriptions received and distribution reinvestments to each respective share class, as applicable, and are effective on the first day of each month. The proceeds received through subscriptions and distribution reinvestments for each share class are additions to the prior month ending aggregate NAV for each respective share class (including OP units). Additionally, the NAV of each share class is reduced by the respective repurchases for such month. The result represents the aggregate NAV per share class effective as of the first calendar day of the current month.
•Any change in our aggregate NAV (whether an increase or decrease), excluding management fees paid to the Adviser and the performance participation allocation paid to the Special Limited Partner, is allocated among each class of shares (including OP units) based on each class's relative percentage of the previous aggregate NAV adjusted for issuances of shares that were effective on the first calendar day of such month and repurchases that were effective on the last calendar day of such month. For the purposes of allocating any change in our aggregate NAV, Class S will be combined with Class S-2, Class T will be combined with T-2, and Class D will be combined with D-2 when allocating changes on a relative percentage of the aggregate NAV. Changes in our aggregate NAV include, but are not limited to, accruals of our net portfolio income, interest expense, distributions, unrealized/realized gains and losses on assets, any applicable organization and offering costs and any expense reimbursements, debt appreciation and depreciation and general and administrative expenses. Unrealized net real estate and debt appreciation includes any change in the fair market value of our investments in real estate, investments in real estate debt, investments in unconsolidated entities, and Debt.
•For each applicable class of shares, the management fee is calculated as a percentage of the aggregate NAV for such class of shares and any accrued performance participation allocation is calculated as a percentage of Total Return, subject to a Hurdle amount and a High Water mark, with a Catch-Up (each term as defined in the prospectus), with respect to such class of shares.
•Net distributions are typically declared on the last day of each month and are a reduction to the NAV of each respective share class. As a result of the allocation of stockholder servicing fees, the net distributions per share will differ by share class. The monthly stockholder servicing fee is calculated as a percentage of each applicable class of shares' NAV (Class S, Class S-2, Class D, Class D-2, Class T, and Class T-2). Class I, Class C, Class L, Class L-2, and Class F shares are not subject to the stockholder servicing fee.
•NAV per share for each class is calculated by dividing such class's NAV at the end of each month by the number of shares outstanding for that class at the end of such month.
Please refer to "Net Asset Value Calculation and Valuation Guidelines" in the prospectus for the Current Offering (as defined below) for further details on how our NAV is determined.
Our total NAV presented in the following tables includes the NAV of our Class I, Class S, Class S-2, Class D, Class D-2, Class T, Class T-2, Class C shares, and Class L shares, as well as the partnership interests of BREIT OP held by parties other than the Company. The following table provides a breakdown of the major components of our NAV as of September 30, 2026 ($ and shares/units in thousands):
| Components of NAV | September 30, 2026 | |||||||
|
Investments in real estate(1)
|
$ | 88,636,059 | ||||||
| Investments in real estate debt | 4,942,203 | |||||||
|
Investments in unconsolidated entities(2)
|
23,189,872 | |||||||
| Cash and cash equivalents | 1,409,420 | |||||||
| Restricted cash | 785,758 | |||||||
| Other assets | 3,647,952 | |||||||
| Mortgage loans, term loans, and revolving credit facilities, net | (52,847,102) | |||||||
| Secured financings of investments in real estate debt | (2,855,117) | |||||||
| Subscriptions received in advance | (209,848) | |||||||
| Other liabilities | (3,022,675) | |||||||
| Accrued performance participation allocation | (163,016) | |||||||
| Management fee payable | (60,562) | |||||||
|
Accrued stockholder servicing fees(3)
|
(12,562) | |||||||
|
Non-controlling interests in consolidated subsidiaries(4)
|
(5,698,257) | |||||||
| Net Asset Value | $ | 57,742,125 | ||||||
|
Number of outstanding shares/units(5)
|
3,938,430 | |||||||
(1)Investments in real estate reflects the entire value of our consolidated real estate properties, including the $77.9 billion allocable to us and $10.7 billion allocable to third party joint venture interests in such investments as of September 30, 2026.
(2)Investments in unconsolidated entities reflects the value of our net equity investment in entities we do not consolidate. As of September 30, 2026, our allocable share of the gross real estate asset value held by such entities was $48.2 billion.
(3)Stockholder servicing fees only apply to Class S, Class S-2, Class D, Class D-2, Class T, and Class T-2 shares. For purposes of NAV, we recognize the stockholder servicing fee as a reduction of NAV on a monthly basis as such fee is paid. Under GAAP, we accrue (i) the full amount, up to the applicable 8.75% fee limitation, for Class S, Class D and Class T shares and (ii) the future stockholder servicing fees based on the estimated life of the shares held by stockholders for Class S-2, Class D-2 and Class T-2 as an offering cost, in each case, at the time we sell the applicable shares. As of September 30, 2026, the Company has accrued under GAAP $0.6 billion of stockholder servicing fees payable to the Dealer Manager related to the Class S, Class S-2, Class D, Class D-2, Class T, and Class T-2 shares sold. The Dealer Manager does not retain any of these fees, all of which are retained by, or re-allowed (paid), to participating broker-dealers.
(4)Includes $265.2 million of net offering proceeds raised through the DST Program as of September 30, 2026.
(5)As of September 30, 2026, no Class L-2 or Class F shares were outstanding.
The following table provides a breakdown of our total NAV and NAV per share/unit by class as of September 30, 2026 ($ and shares/units in thousands, except per share/unit data):
|
Share Class
|
Net asset value
|
Number of outstanding shares/units(1)
|
NAV Per Share/Unit as of September 30, 2026
|
|||||||||||||||||
|
Class I Shares
|
$ | 32,265,815 | 2,202,624 | $ | 14.6488 | |||||||||||||||
|
Class S Shares
|
16,120,096 | 1,101,393 | 14.6361 | |||||||||||||||||
|
Class S-2 Shares
|
991,112 | 67,717 | 14.6361 | |||||||||||||||||
|
Class D Shares
|
1,279,472 | 89,672 | 14.2684 | |||||||||||||||||
|
Class D-2 Shares
|
119,123 | 8,349 | 14.2684 | |||||||||||||||||
|
Class T Shares
|
379,754 | 26,408 | 14.3804 | |||||||||||||||||
|
Class T-2 Shares
|
10,234 | 712 | 14.3804 | |||||||||||||||||
|
Class C Shares
|
678,200 | 38,962 | 17.4067 | |||||||||||||||||
| Class L Shares | 211,028 | 14,350 | 14.7062 | |||||||||||||||||
|
Third Party Operating Partnership(2)
|
5,687,291 | 388,243 | 14.6488 | |||||||||||||||||
|
Total
|
$ | 57,742,125 | 3,938,430 | |||||||||||||||||
(1)As of September 30, 2026, no Class L-2 or Class F shares were outstanding.
(2)Includes the partnership interests of BREIT OP held by BREIT Special Limited Partner, Class B unitholders, and other BREIT OP interests held by parties other than the Company.
The following table details the weighted average discount rate and exit capitalization rate by property type, which are the key assumptions used in the discounted cash flow valuations as of September 30, 2026:
| Property Type | Discount Rate | Exit Capitalization Rate | ||||||||||||
| Rental Housing | 7.2% | 5.4% | ||||||||||||
| Industrial | 7.5% | 5.5% | ||||||||||||
| Net Lease | 6.9% | 5.7% | ||||||||||||
| Hospitality | 10.9% | 9.3% | ||||||||||||
| Data Centers | 8.9% | 6.5% | ||||||||||||
| Office | 8.1% | 5.6% | ||||||||||||
| Retail | 7.9% | 6.3% | ||||||||||||
These assumptions are determined by our Adviser, and reviewed by our independent valuation advisor. A change in these assumptions would impact the calculation of the value of our property investments. For example, assuming all else equal, the changes listed below would result in the following effects on our investment values:
| Input |
Hypothetical Change |
Rental Housing Investment Values |
Industrial Investment Values |
Net Lease Investment Values |
Hospitality Investment Values |
Data Center Investment Values |
Office Investment Values |
Retail Investment Values |
||||||||||||||||||||||||||||||||||||||||||
| Discount Rate | 0.25% decrease | +1.8% | +2.0% | +1.8% | +1.6% | +0.8% | +1.9% | +1.9% | ||||||||||||||||||||||||||||||||||||||||||
| (weighted average) | 0.25% increase | (1.8)% | (1.9)% | (1.8)% | (1.6)% | (0.7)% | (1.9)% | (1.7)% | ||||||||||||||||||||||||||||||||||||||||||
| Exit Capitalization Rate | 0.25% decrease | +2.9% | +3.4% | +2.6% | +1.4% | +0.9% | +3.2% | +2.4% | ||||||||||||||||||||||||||||||||||||||||||
| (weighted average) | 0.25% increase | (2.6)% | (3.1)% | (2.4)% | (1.3)% | (0.8)% | (2.9)% | (2.2)% | ||||||||||||||||||||||||||||||||||||||||||
The following table reconciles stockholders' equity and BREIT OP partners' capital per our Condensed Consolidated Balance Sheets to our NAV ($ in thousands):
| September 30, 2026 | |||||
| Stockholders' equity | $ | 17,199,397 | |||
| Non-controlling interests attributable to BREIT OP | 4,220,342 | ||||
| Total BREIT stockholders' equity and BREIT OP partners' capital under GAAP | 21,419,739 | ||||
| Adjustments: | |||||
| Accrued stockholder servicing fees | 610,751 | ||||
| Accrued affiliated service provider incentive compensation awards | (65,637) | ||||
| Accumulated depreciation and amortization under GAAP | 16,665,710 | ||||
| Unrealized net real estate and real estate debt appreciation | 19,111,562 | ||||
| NAV | $ | 57,742,125 | |||
The following details the adjustments to reconcile total GAAP stockholders' equity of BREIT and partners' capital of BREIT OP to our NAV:
-Accrued stockholder servicing fees represent the accrual for the cost of the stockholder servicing fees for Class S, Class S-2, Class D, Class D-2, Class T, and Class T-2 shares. Under GAAP, we accrue (i) the full amount, up to the applicable 8.75% fee limitation, for Class S, Class D and Class T shares and (ii) the future stockholder servicing fees based on the estimated life of the shares held by stockholders for Class S-2, Class D-2 and Class T-2 shares, in each case, as an offering cost at the time we sell the applicable share. Refer to Note 10 to our condensed consolidated financial statements for further details of the GAAP treatment regarding the stockholder servicing fees. For purposes of calculating NAV, we recognize the stockholder servicing fees as a reduction to NAV on a monthly basis when such fees are paid.
-Under GAAP, the affiliated incentive compensation awards are valued as of grant date and compensation expense is recognized over the service period on a straight-line basis with an offset to equity, resulting in no impact to Stockholders' Equity. For purposes of calculating NAV, we value the awards based on performance in the applicable period and deduct such value from NAV.
-We depreciate our investments in real estate and amortize certain other assets and liabilities in accordance with GAAP. Such depreciation and amortization are not recorded for purposes of calculating our NAV.
-Our investments in real estate are presented at their depreciated cost basis in our condensed consolidated GAAP financial statements. Additionally, Debt is presented at its amortized cost basis in our condensed consolidated GAAP financial statements. As such, any increases or decreases in the fair market value of our investments in real estate or our Debt are not included in our GAAP results. For purposes of calculating our NAV, our investments in real estate and our Debt are recorded at fair value.
Distributions
Beginning in March 2017, we have declared monthly distributions for each class of our common stock and OP units, which are generally paid 20 days after month-end. We have paid distributions consecutively each month since that time. Each class of our common stock and OP units received the same aggregate gross distribution of $0.4979 per share/unit for the nine months ended September 30, 2026. Class C shares currently have no distribution amount presented as the class is generally an accumulating share class whereby its share of income will accrete into its NAV. As of September 30, 2026, there were no Class L-2 shares or Class F shares outstanding. The net distribution varies for each class based on the applicable stockholder servicing fee, which is deducted from the monthly distribution per share/unit and paid directly to the applicable distributor.
The following table details the total net distribution for each of our share classes and OP units for the nine months ended September 30, 2026:
| Record Date |
Class I
Shares
|
Class S Shares |
Class S-2
Shares
|
Class D
Shares
|
Class D-2
Shares
|
Class T
Shares
|
Class T-2
Shares
|
Class L Shares |
OP Units
|
|||||||||||||||||||||||||||||||||||||||||||||||
| January 31, 2026 | $ | 0.0554 | $ | 0.0451 | $ | 0.0452 | $ | 0.0524 | $ | 0.0525 | $ | 0.0453 | $ | 0.0453 | $ | 0.0554 | $ | 0.0554 | ||||||||||||||||||||||||||||||||||||||
| February 28, 2026 | 0.0544 | 0.0451 | 0.0451 | 0.0517 | 0.0517 | 0.0453 | 0.0453 | 0.0544 | 0.0544 | |||||||||||||||||||||||||||||||||||||||||||||||
| March 31, 2026 | 0.0554 | 0.0451 | 0.0451 | 0.0524 | 0.0524 | 0.0453 | 0.0453 | 0.0554 | 0.0554 | |||||||||||||||||||||||||||||||||||||||||||||||
| April 30, 2026 | 0.0551 | 0.0451 | 0.0451 | 0.0522 | 0.0522 | 0.0453 | 0.0453 | 0.0551 | 0.0551 | |||||||||||||||||||||||||||||||||||||||||||||||
| May 31, 2026 | 0.0555 | 0.0451 | 0.0451 | 0.0525 | 0.0525 | 0.0452 | 0.0452 | 0.0555 | 0.0555 | |||||||||||||||||||||||||||||||||||||||||||||||
| June 30, 2026 | 0.0553 | 0.0451 | 0.0451 | 0.0524 | 0.0524 | 0.0453 | 0.0453 | 0.0553 | 0.0553 | |||||||||||||||||||||||||||||||||||||||||||||||
| July 31, 2026 | 0.0557 | 0.0451 | 0.0451 | 0.0527 | 0.0527 | 0.0453 | 0.0453 | 0.0557 | 0.0557 | |||||||||||||||||||||||||||||||||||||||||||||||
| August 31, 2026 | 0.0557 | 0.0451 | 0.0451 | 0.0526 | 0.0526 | 0.0452 | 0.0452 | 0.0557 | 0.0557 | |||||||||||||||||||||||||||||||||||||||||||||||
| September 30, 2026 | 0.0554 | 0.0451 | 0.0451 | 0.0525 | 0.0525 | 0.0453 | 0.0453 | 0.0554 | 0.0554 | |||||||||||||||||||||||||||||||||||||||||||||||
| Total | $ | 0.4979 | $ | 0.4059 | $ | 0.4060 | $ | 0.4714 | $ | 0.4715 | $ | 0.4075 | $ | 0.4075 | $ | 0.4979 | $ | 0.4979 | ||||||||||||||||||||||||||||||||||||||
The following table summarizes our distributions declared during the nine months ended September 30, 2026 and 2025 ($ in thousands):
| Nine Months Ended September 30, 2026 | Nine Months Ended September 30, 2025 | ||||||||||||||||||||||
| Amount | Percentage | Amount | Percentage | ||||||||||||||||||||
| Distributions | |||||||||||||||||||||||
| Payable in cash | $ | 885,383 | 49 | % | $ | 897,047 | 50 | % | |||||||||||||||
| Reinvested in shares | 912,593 | 51 | % | 884,772 | 50 | % | |||||||||||||||||
|
Total distributions(1)
|
$ | 1,797,976 | 100 | % | $ | 1,781,819 | 100 | % | |||||||||||||||
| Sources of Distributions | |||||||||||||||||||||||
|
Cash flows from operating activities(2)
|
$ | 1,767,167 | 98 | % | $ | 1,721,607 | 97 | % | |||||||||||||||
|
Net gains from investment realizations(3)
|
30,809 | 2 | % | 60,212 | 3 | % | |||||||||||||||||
| Indebtedness | - | - | % | - | - | % | |||||||||||||||||
| Total sources of distributions | $ | 1,797,976 | 100 | % | $ | 1,781,819 | 100 | % | |||||||||||||||
| Cash flows from operating activities | $ | 1,767,167 | $ | 1,721,607 | |||||||||||||||||||
|
Net gains from investment realizations(3)
|
$ | 484,637 | $ | 547,103 | |||||||||||||||||||
|
Funds from Operations(4)
|
$ | 988,768 | $ | (1,086,836) | |||||||||||||||||||
|
Adjusted Funds from Operations(4)
|
$ | 960,484 | $ | 938,285 | |||||||||||||||||||
|
Funds Available for Distribution(4)
|
$ | 829,959 | $ | 820,348 | |||||||||||||||||||
(1)Excludes cash paid to third party joint venture partners of consolidated subsidiaries classified as non-controlling interests under GAAP.
(2)Our inception to date cash flows from operating activities, along with inception to date net gains from investment realizations, have funded 100% of our distributions to BREIT stockholders and OP unitholders through September 30, 2026.
(3)Year-to-date net gains from investment realizations includes (i) net gains and losses on dispositions of real estate, (ii) net realized gains and losses on sale of investments in real estate debt, and (iii) impairments of investments in real estate, which amounts are not included in cash flows from operating activities.
(4)Reflects amounts allocable to BREIT stockholders and OP unitholders. See "Funds from Operations, Adjusted Funds from Operations and Funds Available for Distribution" above for descriptions of FFO, AFFO, and FAD, for reconciliations of these items to GAAP net loss attributable to BREIT stockholders and OP unitholders, and for considerations on how to review these metrics.
Liquidity and Capital Resources
Liquidity
We believe we have sufficient liquidity to operate our business, with $8.4 billion of liquidity as of November 5, 2026. When we refer to our liquidity, this includes amounts available under our undrawn revolving credit facilities of $7.2 billion as well as unrestricted cash and cash equivalents of $1.2 billion. We also expect $0.1 billion of net proceeds from dispositions under contract where we have received a non-refundable deposit as of November 5, 2026. We also generate incremental liquidity through our operating cash flows, which were $1.8 billion for the nine months ended September 30, 2026. We may also generate incremental liquidity through the sale of our real estate debt investments, which were carried at their estimated fair value of $4.9 billion as of September 30, 2026.
In addition, we remain moderately leveraged (43% as of September 30, 2026) and can generate additional liquidity through incurring additional indebtedness secured by our real estate and real estate debt investments, unsecured financings, and other forms of indebtedness. Our leverage ratio is measured by dividing (i) consolidated property-level and entity-level debt net of cash and debt-related restricted cash, by (ii) the asset value of real estate investments (measured using the greater of fair market value and cost) plus the equity in our settled real estate debt investments. Indebtedness incurred (i) in connection with funding a deposit in advance of the closing of an investment or (ii) as other working capital advances will not be included as part of the calculation above. Our leverage ratio would be higher if the indebtedness on our real estate debt investments and pro rata share of debt within our unconsolidated investments were taken into account.
In addition to our current liquidity, we obtain incremental liquidity through the sale of shares of our common stock in our continuous public offering and private offerings, and units of BREIT OP, from which we have received cumulative net proceeds of $83.5 billion as of November 5, 2026.
Capital Resources
As of September 30, 2026, our indebtedness included loans secured by our properties, secured financings of our investments in real estate debt, and unsecured revolving credit facilities and term loans.
The following table is a summary of our indebtedness as of September 30, 2026 ($ in thousands):
| September 30, 2026 | Principal Balance as of | |||||||||||||||||||||||||||||||
| Indebtedness |
Weighted
Average
Interest Rate(1)
|
Weighted
Average
Maturity Date(2)
|
Maximum Facility Size |
September 30, 2026 | December 31, 2025 | |||||||||||||||||||||||||||
| Fixed rate loans secured by our properties: | ||||||||||||||||||||||||||||||||
|
Fixed rate mortgages(3)
|
4.1% | 6/11/2031 | N/A | $ | 18,077,097 | $ | 20,763,325 | |||||||||||||||||||||||||
| Variable rate loans secured by our properties: | ||||||||||||||||||||||||||||||||
| Variable rate mortgages and term loans | +2.0% | 6/25/2030 | N/A | 30,444,090 | 30,964,083 | |||||||||||||||||||||||||||
|
Variable rate secured revolving credit facilities
|
+1.9% | 7/15/2030 | $ | 3,158,855 | 2,747,456 | 2,666,334 | ||||||||||||||||||||||||||
|
Variable rate warehouse facilities(4)
|
+1.3% | 10/25/2028 | $ | 1,262,500 | 788,554 | 1,580,141 | ||||||||||||||||||||||||||
| Total variable rate loans | +2.0% | 6/12/2030 | 33,980,100 | 35,210,558 | ||||||||||||||||||||||||||||
| Total loans secured by our properties | 5.2% | 10/17/2030 | 52,057,197 | 55,973,883 | ||||||||||||||||||||||||||||
| Secured financings of investments in real estate debt: | ||||||||||||||||||||||||||||||||
| Secured financings of investments in real estate debt | +1.0% | 7/30/2027 | N/A | 2,855,117 | 2,921,671 | |||||||||||||||||||||||||||
| Unsecured loans: | ||||||||||||||||||||||||||||||||
| Unsecured term loans | +2.5% | 2/21/2029 | N/A | 1,426,923 | 1,276,923 | |||||||||||||||||||||||||||
| Unsecured variable rate revolving credit facilities | +2.5% | 9/25/2028 | $ | 7,076,577 | - | 1,175,000 | ||||||||||||||||||||||||||
| Affiliate revolving credit facility | +2.5% | 12/15/2026 | 75,000 | - | - | |||||||||||||||||||||||||||
| Total unsecured loans | $ | 7,151,577 | 1,426,923 | 2,451,923 | ||||||||||||||||||||||||||||
| Total indebtedness | $ | 56,339,237 | $ | 61,347,477 | ||||||||||||||||||||||||||||
(1)"+" refers to the relevant floating benchmark rates, primarily SOFR and similar indices for non-USD facilities, as applicable to each loan or secured financing. As of September 30, 2026, we had outstanding interest rate swaps with an aggregate notional balance of $27.0 billion and interest rate caps with an aggregate notional balance of $19.7 billion that mitigate our exposure to potential future interest rate increases under our floating-rate debt.
(2)Weighted average maturity assumes maximum maturity date, including any extensions, where the Company, at its sole discretion, has one or more extension options.
(3)Includes $138.8 million and $201.9 million of loans related to investments in affordable housing properties as of September 30, 2026 and December 31, 2025, respectively. Such loans are generally from municipalities, housing authorities, and other third parties administered through government sponsored affordable housing programs. Certain of these loans may be forgiven if specific affordable housing conditions are maintained.
(4)Additional borrowings under the Company's variable rate warehouse facilities require additional collateral, which are subject to lender approval.
The table above excludes consolidated senior CMBS positions owned by third parties, which are reflected in our condensed consolidated GAAP balance sheets, as these liabilities are non-recourse to us and can only be satisfied by repayment of the collateral loans underlying such securitizations.
The following table is a summary of the impact of interest rate derivatives on our weighted average interest rate as of September 30, 2026:
| Weighted average interest rate of loans secured by our properties | 5.2% | |||||||
| Impact of interest rate swaps, caps and other interest rate derivatives | (0.9)% | |||||||
| Net weighted average interest rate of loans secured by our properties | 4.3% | |||||||
Public and Private Offerings
For the nine months ended September 30, 2026, we have received proceeds of $3.4 billion from the sale of shares of common stock in our continuous public and private offerings, and units of BREIT OP.
We registered with the Securities and Exchange Commission (the "SEC"), an offering of up to $60.0 billion in shares of common stock, consisting of up to $48.0 billion in any combination of Class I, Class S-2, Class T-2 and Class D-2 shares in our primary offering and up to $12.0 billion in any combination of Class I, Class S, Class S-2, Class T, Class T-2, Class D and Class D-2 shares pursuant to our distribution reinvestment plan, which we began using to offer shares of our common stock in September 2025 (the "Current Offering").
As of November 6, 2026, we have received cumulative net proceeds of $3.3 billion from selling an aggregate of 230.7 million shares of our common stock in the Current Offering (consisting of 147.0 million Class I shares, 21.3 million Class S shares, 48.7 million Class S-2 shares, 2.7 million Class D shares, 8.9 million Class D-2 shares, 1.1 million Class T shares, and 1.0 million Class T-2 shares).
Additionally, we have and may continue to conduct private offerings of Class I, Class S-2, Class T-2, Class D-2, Class C, Class L, and Class L-2 shares to accredited investors or other vehicles that hold our shares and other assets, as described in our prospectus. All such private offerings are or will be exempt from the registration provisions of the Securities Act.
Capital Uses
During periods when we are selling more shares than we are repurchasing, we primarily use our capital to acquire our investments, which we also fund with other capital resources. During periods when we are repurchasing more shares than we are selling, we primarily use our capital to fund repurchases. For the nine months ended September 30, 2026, we fulfilled $2.9 billion of repurchases requested, which represents all third party repurchase requests received for the nine months ended September 30, 2026. We continue to believe that our current liquidity position is sufficient to meet the needs of our business.
In addition, we may have other funding obligations, which we expect to satisfy with the cash flows generated from our investments and our capital resources described above. Such obligations may include distributions to our stockholders, operating expenses, capital expenditures, repayment of indebtedness, and debt service on our outstanding indebtedness. Our operating expenses include, among other things, the management fee we pay to the Adviser and the performance participation allocation that BREIT OP pays to the Special Limited Partner, both of which will impact our liquidity to the extent the Adviser or the Special Limited Partner elects to receive such payments in cash, or subsequently redeem shares or OP units previously issued to them. To date, the Adviser and the Special Limited Partner have both always elected to be paid in a combination of shares and OP units, resulting in a non-cash expense.
Contractual Obligations
The following table aggregates our contractual obligations and commitments with payments due subsequent to September 30, 2026 ($ in thousands):
| Obligations | Total |
Less than 1 year |
1-3 years | 3-5 years |
More than 5 years |
|||||||||||||||||||||||||||
|
Indebtedness(1)
|
$ | 67,235,759 | $ | 10,533,976 | $ | 16,844,474 | $ | 28,914,839 | $ | 10,942,470 | ||||||||||||||||||||||
| Ground leases | 2,760,813 | 40,933 | 83,132 | 86,054 | 2,550,694 | |||||||||||||||||||||||||||
| Total | $ | 69,996,572 | $ | 10,574,909 | $ | 16,927,606 | $ | 29,000,893 | $ | 13,493,164 | ||||||||||||||||||||||
(1)The allocation of our indebtedness includes both principal and interest payments based on the fully extended maturity date and interest rates in effect at September 30, 2026. The table above excludes consolidated senior CMBS positions owned by third parties, as these liabilities are non-recourse to us and can only be satisfied by repayment of the collateral loans underlying such securitizations.
Cash Flows
The following table provides a breakdown of the net change in our cash and cash equivalents and restricted cash ($ in thousands):
|
Nine Months Ended September 30,
|
||||||||||||||
| 2026 | 2025 | |||||||||||||
| Cash flows provided by operating activities | $ | 1,767,167 | $ | 1,721,607 | ||||||||||
| Cash flows provided by investing activities | 8,655,978 | 8,074,332 | ||||||||||||
| Cash flows used in financing activities | (10,573,627) | (10,153,863) | ||||||||||||
| Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (150,482) | $ | (357,924) | ||||||||||
Cash flows provided by operating activities increased $45.6 million during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase was primarily due to increased cash flows from distributions of earnings from unconsolidated entities.
Cash flows provided by investing activities increased $0.6 billion during the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase was primarily due to (i) an increase of $1.7 billion in proceeds from sales and repayments of investments in real estate debt, (ii) an increase of $1.3 billion in proceeds from dispositions of real estate, (iii) an increase of $0.3 billion in repayments of real estate loans held by consolidated securitization vehicles and (iv) a decrease of $0.2 billion in investment in unconsolidated entities. This was partially offset by an increase of $2.9 billion in purchases of investments in real estate debt.
Cash flows used in financing activities increased $0.4 billion for the nine months ended September 30, 2026, compared to the nine months ended September 30, 2025. The increase was primarily due to a net increase in the repayment of borrowings of $3.1 billion. This was partially offset by a decrease of $1.8 billion in repurchases of common stock and an increase of $0.9 billion in proceeds from issuance of common stock.
Recent Accounting Pronouncements
See Note 2 - "Summary of Significant Accounting Policies" to our consolidated financial statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for a discussion concerning recent accounting pronouncements.
Critical Accounting Estimates
Our discussion and analysis of our financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of the financial statements in accordance with GAAP involves significant judgments and assumptions and require estimates about matters that are inherently uncertain. There have been no material changes to our Critical Accounting Policies, including significant accounting policies that we believe are the most affected by our judgments, estimates, and assumptions, which are described in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025.
Blackstone Real Estate Income Trust Inc. published this content on November 06, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on November 06, 2026 at 21:43 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]