Blackstone's REIT Continues to Face Massive Redemption Requests. Should Investors Worry?
According to Bloomberg, investors requested to pull more than $5 billion out of Blackstone's (NYSE: BX) non-traded REIT, the Blackstone Real Estate Income Trust (or BREIT) last month. That was four times more than the company's redemption limit, forcing it to restrict redemptions once again.
The continued surge in such requests has kept the pressure on Blackstone's stock price. The company will likely continue to battle this headwind until it works through its current backlog. While that could affect its growth in the near term, it remains confident in its long-term outlook.
Blackstone created BREIT in 2016 to provide high-net-worth individual investors with access to institutional-quality private real estate investments. The private real estate market tends to deliver higher income yields and less volatility than publicly traded REITs:
Source Fool.com
