In the fast-paced world of investments, it is crucial to stay up-to-date with the latest market trends. That's why we're here to shed light on BREIT's performance and provide you with valuable insights into the current market environment.
A Glimpse into the Past and Future
Before we dive into the details, it's important to note that past performance should not be seen as a direct indicator of future returns. At BREIT, we understand that the financial landscape is ever-changing, and our aim is to provide you with the most accurate and up-to-date information possible.
A Closer Look at Net Asset Value (NAV)
To analyze our performance, we rely on calculations based on our net asset value (NAV). It is important to mention that these calculations involve significant professional judgment. The fair value of our assets, minus our outstanding liabilities, determines our NAV. It is crucial to be aware that the calculated value of our assets and liabilities may differ from their actual realizable value or future value. This discrepancy can impact the NAV, as well as any returns derived from it and the overall value of your investment. While NAV is not a measure used under generally accepted accounting principles (GAAP), it provides essential insights into our equity.
Understanding Key Figures
As of September 30, 2023, our total equity under GAAP (excluding non-controlling third-party JV interests) was $43.1 billion, while our NAV stood at $66.0 billion. For Class S, Class T, Class D, and Class I shares, our NAV per share was $14.80, $14.58, $14.48, and $14.81, respectively. Our GAAP equity per share/unit was $9.66. These figures demonstrate the strength and value of your investment in BREIT.
Net Income, Distributions, and Taxes
Net income is an important metric to consider when evaluating investment performance. For the nine months ended September 30, 2023, we have incurred $776.8 million in net income, excluding net losses attributable to non-controlling interests in third-party JV interests. It's worth noting that 100% of our inception to date distributions were funded from cash flows from operations.
When it comes to taxes, a portion of REIT ordinary income distributions may be tax deferred. The ability to characterize ordinary income as Return of Capital (ROC) can have tax implications. Investors should consult their own tax advisors to fully understand the potential tax consequences of their investment.
Returns: Past and Present
Curious about our returns? Inception to date (ITD) returns are annualized and show favorable performance across various share classes. Class S shares (no sales load) have demonstrated a 9.6% return, while Class S shares (with sales load) have seen a 9.1% return. Similarly, Class T shares (no sales load) have reflected a 9.9% return, and Class T shares (with sales load) have shown a 9.3% return. Class D shares (no sales load) have achieved a 10.4% return, and Class D shares (with sales load) have reached a 10.1% return. Finally, Class I shares have enjoyed a strong 10.6% return.
Investment Allocation and Property Sector Weighting
Understanding how your investment is allocated and weighted is crucial. Rental housing comprises various subsectors as a percentage of our real estate asset value. Multifamily housing accounts for 25%, with senior housing making up less than 1% of that portion. Student housing represents 11% of the rental housing sector, while single-family rental housing (including manufactured housing) accounts for 9%. Affordable housing also makes up 9% of our rental housing sector.
Rental Housing, Industrial, and Data Centers Rent Growth
Keeping an eye on rent growth trends is essential, and BREIT has experienced positive growth across various sectors. Rental housing has shown effective multifamily market rent growth in our multifamily markets (excluding senior housing) since 2019. Industrial rent growth has been observed in our U.S. industrial markets, while data centers have demonstrated year-over-year U.S. data center rent growth for the full year 2023.
Risk Factors: A Comprehensive Outlook
As with any investment, it is important to consider the associated risks. BREIT is a non-listed REIT that invests primarily in stabilized income-generating commercial real estate investments in the U.S., with a focus on current income. Risks involved include limited liquidity, potential fluctuations in distributions, subjective property appraisals, conflicts of interest, dilution of net book value, ownership and transferability limits, and qualification as a REIT, among others.
It is essential to read our prospectus carefully to understand all the risks associated with investing in BREIT.
Forward-Looking Statements: Navigating the Future with Confidence
Looking ahead, we acknowledge that the future is uncertain. While we provide insights based on our current market environment, these should not be seen as guarantees. Our forward-looking statements are made in good faith and are subject to various risks and uncertainties. To stay up-to-date with our latest developments and performance, please refer to our prospectus and periodic filings with the SEC.
Conclusion: Your Partner in Investing
At BREIT, we strive to ensure transparency and provide you with valuable insights into the current market environment. By adhering to industry standards and maintaining our expertise, authoritativeness, trustworthiness, and experience, we aim to be your trusted partner in investment decisions.
For more information and a comprehensive overview of BREIT's performance, please visit our website and consult with a financial professional. Remember, investing involves risk, and careful consideration is essential before making any investment decisions. With BREIT, you have a reliable partner dedicated to your success.
