BREIT Records $496.7 Million Impairment in Third Quarter

Key Facts

BREIT recorded total impairment charges of $496.7 million in the three months ended September 30, 2026, according to its filing with the U.S. Securities and Exchange Commission. The charges included $453.7 million related to real estate investments held and used, and $43.0 million for properties classified as held for sale. The filing attributed most of the charges to updated assumptions for the undiscounted cash flows of affected assets. The held-and-used assets included 13 multifamily rental properties, an office property and single-family rental homes. That put residential properties at the center of the charges recorded during the quarter.

The charges exceeded the level in the same period a year earlier, when they totaled $27.4 million in the three months ended September 30, 2025. That amount comprised $13.4 million for held-and-used assets and $14.0 million for assets held for sale. The held-and-used assets at the time included a multifamily rental property, an industrial property and single-family rental homes. The $43.0 million charge for properties held for sale in the third quarter of 2026 resulted from their carrying value under accounting standards exceeding fair value less estimated closing costs. The comparison shows total charges were higher in the third quarter of 2026 than a year earlier, with their distribution across asset categories changing.

For the nine months ended September 30, 2026, impairment charges totaled $731.1 million. The total included $621.9 million for held-and-used assets and $109.2 million for assets held for sale. The filing said the short holding period was among the reasons for updating cash-flow assumptions for held-and-used assets. The nine-month figure covers a longer period than the third-quarter charges alone and therefore does not reflect only charges recorded between July and September. The reported figures remain impairments in the accounting value of the properties, according to the categories specified in the filing.

The fund’s total assets were $88.936 billion on September 30, 2026, compared with $98.604 billion on December 31, 2025. This figure measures BREIT’s total assets, while its net asset value was $57.7 billion on September 30, a different measure. Net asset value per share for Class I was $14.65 in September. In its third-quarter update, the fund said about 90% of its sector concentration was in rental housing, industrial properties and data centers, and about 60% of its portfolio was concentrated in U.S. Sun Belt markets. Occupancy was 94%, leverage was 43%, and real estate investments made up 96% of the portfolio, according to the fund’s figures.

The quarter also included property sales comprising 65 residential properties, nine industrial properties and an office property, with net proceeds of $2.0 billion. BREIT said it recorded a net realized gain of $366.1 million from property dispositions, which was offset by the impairment charges during the quarter. In the first nine months of 2026, the fund repurchased 204.1 million common shares and 1.1 million BREIT OP units for $2.9 billion, and said it fulfilled all repurchase requests during that period. The repurchase plan sets a monthly cap of no more than 2% of net asset value and a quarterly cap of no more than 5%. The filing says the board may reduce or suspend repurchases, and requests exceeding the caps are fulfilled pro rata under the plan’s terms.

In a BREIT shareholder letter dated November 4, 2026, the fund reported a net return for Class I of 2.0% in the third quarter, 7.3% year to date and 10.7% for the 12 months through September 30. It said it had recorded 21 consecutive months of positive performance. At the parent-company level, Blackstone’s fee-related earnings were about $1.6 billion for the quarter, and its distributable earnings were $1.7 billion. Blackstone reported $1,368.3 billion in assets under management and inflows of $63.3 billion during the quarter. The company also set a distribution of $1.12 per common share, payable on November 9, 2026.