Blackstone Real Estate Income Trust (BREIT) Investment Losses

Blackstone REIT (BREIT) invests $330 Million in Rental Housing Company

Blackstone Real Estate Income Trust (BREIT), a non traded REIT, has reportedly just invested $300 M in Canada’s Tricon Residential (OTC:TCNGF),  a rental housing company who owns more than 30K single-family rentals and multi-family units across the U.S. and Canada.

Financial Times reported in early August that the REIT’s parent company, Blackstone Group,  (NYSE:BX) agreed to pay hundreds of millions of dollars on loans funding their real estate investment trusts so that that they won’t have to face margin calls if the COVID-19 pandemic deflates the value of their underlying assets, which include hotels, apartment blocks, and office buildings.

Further, in April we told you that BREIT announced a reduction in NAV per share of 8.6% from $11.42 per Class I share as of February 29, 2020, to $10.44 per share as of March 31, 2020.

According to the DI Wire, the investment in Tricon will be made through the purchase of newly created units which are issued by a Tricon subsidiary on a private placement basis and are exchangeable into a minority investment of Tricon. 

A real estate investment trust (REIT) such as Blackstone Real Estate Income Trust is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping centers, hotels and even timberlands. Some REITs also engage in financing real estate. The REIT structure was designed to provide a real estate investment structure similar to the structure mutual funds provide for investment in stocks.

REITs are complex and high risk investments that are really only suitable for sophisticated investors. It is the duty of the brokerage firm to perform due diligence on any investment and to ensure that the investment is suitable for a particular investor in light of that investor’s age, investment objectives, income, net worth, and investment experience. Given the current risk of devaluation of these REITs, such investments are likely only suitable for wealthy and/or sophisticated investors.

Filing a complaint against your Brokerage Firm

If you have suffered losses investing in a non-traded REIT, you may be able to file a FINRA complaint against your brokerage firm. To determine whether you may be able to recover investment losses incurred as a result of your purchase of Blackstone Real Estate Income Trust or another non-traded REIT investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. For more information on the firm, visit www.WhiteSecuritiesLaw.com.