424B3 1 breit-424b3.htm 424B3 breit-424b3.htm

 

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-225566

BLACKSTONE REAL ESTATE INCOME TRUST, INC.

SUPPLEMENT NO. 4 DATED NOVEMBER 19, 2019

TO THE PROSPECTUS DATED JANUARY 4, 2019

This prospectus supplement (“Supplement”) is part of and should be read in conjunction with the prospectus of Blackstone Real Estate Income Trust, Inc., dated January 4, 2019 (as supplemented to date, the “Prospectus”). Unless otherwise defined herein, capitalized terms used in this Supplement shall have the same meanings as in the Prospectus. References herein to the "Company," "we," "us," or "our" refer to Blackstone Real Estate Income Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.

The purposes of this Supplement are as follows:

 

to disclose the transaction price for each class of our common stock as of December 1, 2019;

 

to disclose the calculation of our October 31, 2019 net asset value (“NAV”) per share for all share classes;

 

to provide an update on the status of our current public offering (the “Offering”);

 

to provide an update on our acquisition of The Bellagio Real Estate;

 

to otherwise update the Prospectus; and

 

to include our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019.

December 1, 2019 Transaction Price

The transaction price for each share class of our common stock for subscriptions accepted as of December 1, 2019 (and repurchases as of November 30, 2019) is as follows:

 

 

Transaction Price

(per share)

 

Class S

 

$

11.4263

 

Class T

 

$

11.2193

 

Class D

 

$

11.2588

 

Class I

 

$

11.4008

 

The December 1 transaction price for each of our share classes is equal to such class’s NAV per share as of October 31, 2019. A detailed calculation of the NAV per share is set forth below. No transactions or events have occurred since October 31, 2019 that would have a material impact on our NAV per share. The purchase price of our common stock for each share class equals the transaction price of such class, plus applicable upfront selling commissions and dealer manager fees.

October 31, 2019 NAV per Share

We calculate NAV per share in accordance with the valuation guidelines that have been approved by our board of directors. Our NAV per share, which is updated as of the last calendar day of each month, is posted on our website at www.breit.com and is made available on our toll-free, automated telephone line at (844) 702-1299. Please refer to “Net Asset Value Calculation and Valuation Guidelines” in the Prospectus for how our NAV is determined. The Adviser is ultimately responsible for determining our NAV. All our property investments are appraised annually by third party appraisal firms in accordance with our valuation guidelines and such appraisals are reviewed by our independent valuation advisor. We have included a breakdown of the components of total NAV and NAV per share for October 31, 2019 along with the immediately preceding month.



Our total NAV presented in the following tables includes the NAV of our Class S, Class T, Class D, and Class I common stockholders, as well as partnership interests of BREIT Operating Partnership held by parties other than the Company. The following table provides a breakdown of the major components of our total NAV as of October 31, 2019 ($ and shares in thousands):

 

Components of NAV

 

October 31, 2019

 

Investments in real properties

 

$

23,711,856

 

Investments in real estate-related securities

 

 

4,112,329

 

Cash and cash equivalents

 

 

187,063

 

Restricted cash

 

 

837,500

 

Other assets

 

 

229,613

 

Mortgage notes, term loans, and revolving credit facilities, net

 

 

(13,354,372

)

Repurchase agreements

 

 

(2,887,372

)

Subscriptions received in advance

 

 

(631,534

)

Other liabilities

 

 

(686,309

)

Accrued performance participation allocation

 

 

(117,048

)

Management fee payable

 

 

(11,870

)

Accrued stockholder servicing fees (1)

 

 

(4,371

)

Non-controlling interests in joint ventures

 

 

(172,150

)

Net asset value

 

$

11,213,335

 

Number of outstanding shares/units

 

 

984,013

 

_______________

 

(1)

Stockholder servicing fees only apply to Class S, Class T and Class D 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 accounting principles generally accepted in the United States of America (“GAAP”), we accrue the full cost of the stockholder servicing fee as an offering cost at the time we sell Class S, Class T and Class D shares. As of October 31, 2019, the Company has accrued under GAAP $419.7 million of stockholder servicing fees payable to the Dealer Manager related to the Class S, Class T and Class D shares sold. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers.

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of October 31, 2019 ($ and shares/units in thousands, except per share/unit data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

 

 

 

 

 

Class S

 

Class T

 

Class D

 

Class I

 

Partnership

 

 

 

 

NAV Per Share/Unit

 

Shares

 

Shares

 

Shares

 

Shares

 

Units(1)

 

Total

 

Net asset value

 

$

5,364,392

 

$

420,440

 

$

819,551

 

$

4,459,868

 

$

149,084

 

$

11,213,335

 

Number of outstanding shares/units

 

 

469,478

 

 

37,475

 

 

72,792

 

 

391,191

 

 

13,077

 

 

984,013

 

NAV Per Share/Unit as of October 31, 2019

 

$

11.4263

 

$

11.2193

 

$

11.2588

 

$

11.4008

 

$

11.4008

 

 

 

 

_______________

 

(1)

Includes the partnership interests of BREIT Operating Partnership held by BREIT Special Limited Partner, Class B unit holders, and other BREIT Operating Partnership interests held by parties other than the Company.

Set forth below are the weighted averages of the key assumptions in the discounted cash flow methodology used in the October 31, 2019 valuations, based on property types.

 

Property Type

 

Discount Rate

 

 

Exit Capitalization Rate

 

Multifamily(1)

 

7.8%

 

 

5.4%

 

Industrial

 

7.3%

 

 

5.7%

 

Hotel

 

9.8%

 

 

9.7%

 

Retail

 

7.8%

 

 

6.1%

 

Other(2)

 

7.3%

 

 

7.2%

 

_______________

 

(1)

Multifamily includes student housing and manufactured housing.

 

(2)

Other includes self-storage.

These assumptions are determined by the 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 other factors remain unchanged, the changes listed below would result in the following effects on our investment values:

 


 

 

Hypothetical

 

Multifamily

 

Industrial

 

Hotel

 

Retail

 

Other

 

Input

 

Change

 

Investment Values

 

Investment Values

 

Investment Values

 

Investment Values

 

Investment Values

 

Discount Rate

 

0.25% decrease

 

+1.9%

 

+1.7%

 

+1.0%

 

+1.8%

 

+1.8%

 

(weighted average)

 

0.25% increase

 

(1.8%)

 

(2.1%)

 

(1.0%)

 

(1.8%)

 

(1.7%)

 

Exit Capitalization Rate

 

0.25% decrease

 

+3.0%

 

+2.7%

 

+1.9%

 

+2.5%

 

+1.9%

 

(weighted average)

 

0.25% increase

 

(2.8%)

 

(2.9%)

 

(1.8%)

 

(2.3%)

 

(1.8%)

 

 

Our total NAV presented in the following tables includes the NAV of our Class S, Class T, Class D, and Class I common stockholders, as well as the partnership interests of BREIT Operating Partnership held by BREIT Special Limited Partner and Class B unit holders. The following table provides a breakdown of the major components of our total NAV as of September 30, 2019 ($ and shares in thousands):

 

Components of NAV

 

September 30, 2019

 

Investments in real properties

 

$

23,088,664

 

Investments in real estate-related securities

 

 

3,804,309

 

Cash and cash equivalents

 

 

155,674

 

Restricted cash

 

 

666,891

 

Other assets

 

 

188,091

 

Mortgage notes, term loans, and revolving credit facilities, net

 

 

(13,322,320

)

Repurchase agreements

 

 

(2,646,334

)

Subscriptions received in advance

 

 

(560,444

)

Other liabilities

 

 

(651,846

)

Accrued performance participation allocation

 

 

(106,383

)

Management fee payable

 

 

(11,054

)

Accrued stockholder servicing fees (1)

 

 

(4,022

)

Non-controlling interests in joint ventures

 

 

(155,562

)

Net asset value

 

$

10,445,664

 

Number of outstanding shares/units

 

 

918,195

 

________________

 

(1)

Stockholder servicing fees only apply to Class S, Class T and Class D 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 the full cost of the stockholder servicing fee as an offering cost at the time we sell Class S, Class T and Class D shares. As of September 30, 2019, the Company has accrued under GAAP $399.1 million of stockholder servicing fees payable to the Dealer Manager related to the Class S, Class T and Class D shares sold. The Dealer Manager does not retain any of these fees, all of which are retained by, or reallowed (paid) to, participating broker-dealers.

The following table provides a breakdown of our total NAV and NAV per share/unit by class as of September 30, 2019 ($ and shares/units in thousands, except per share/unit data):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third-party

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

 

 

 

 

 

Class S

 

Class T

 

Class D

 

Class I

 

Partnership

 

 

 

 

NAV Per Share/Unit

 

Shares

 

Shares

 

Shares

 

Shares

 

Units(1)

 

Total

 

Net asset value

 

$

5,092,528

 

$

409,465

 

$

777,276

 

$

4,017,704

 

$

148,691

 

$

10,445,664

 

Number of outstanding shares/units

 

 

446,425

 

 

36,559

 

 

69,148

 

 

352,999

 

 

13,064

 

 

918,195

 

NAV Per Share/Unit as of  September 30, 2019

 

$

11.4074

 

$

11.2000

 

$

11.2407

 

$

11.3816

 

$

11.3816

 

 

 

 

_______________

 

(1)

Includes the partnership interests of BREIT Operating Partnership held by BREIT Special Limited Partnership, Class B unit holders, and other BREIT Operating Partnership interests held by parties other than the Company.

 

Status of our Current Public Offering

As of the date hereof, we had issued and sold 405,331,483 shares of our common stock (consisting of 215,144,798 Class S shares, 15,333,271 Class T shares, 45,730,097 Class D shares, and 129,123,317 Class I shares) in the Offering. We intend to continue selling shares in the Offering on a monthly basis.

 



Acquisition of The Bellagio Real Estate

As previously disclosed, we entered into an agreement to acquire the real estate assets of The Bellagio Las Vegas (the “Bellagio”) from MGM Resorts International (“MGM”). On November 15, 2019, we completed the acquisition of the Bellagio from MGM for an aggregate price of approximately $4.25 billion, excluding closing costs, in a 95%/5% Company-led joint venture with MGM.

The acquisition of the Bellagio was funded through a combination of cash on hand (which primarily consisted of proceeds from the Offering) and a $3.01 billion new fixed-rate property-level 10-year term loan.

The acquisition was part of a sale-leaseback transaction whereby we entered into a triple-net lease agreement (the “Lease Agreement”) for the Bellagio with MGM as the tenant, providing that MGM is generally responsible for all property-related expenses, including taxes, insurance and maintenance. The lease has an initial annual rent of $245 million with an initial term of 30 years with two 10-year extension options for MGM. For 2018, MGM reported earnings before interest, taxes, depreciation and amortization for the Bellagio in an amount that is nearly double the initial annual rent under the Lease Agreement. The Lease Agreement provides that the rent will escalate annually throughout the term of the lease at a rate of 2% per annum for the first ten years and thereafter equal to the greater of (i) 2% and (ii) the increase in the consumer price index during the prior year, subject to a cap of 3% during the 11th through 20th years and subject to a cap of 4% after the 20th year. The lease benefits from a full corporate guarantee of rent payments by MGM, a New York Stock Exchange-listed company with a market capitalization of approximately $16 billion as of November 15, 2019 that owns and operates integrated casino, hotel, and entertainment resorts across the United States and in Macau.

Updates to the Prospectus

Investment Objectives and Strategies

The following supersedes and replaces the third sentence of the second paragraph under the section of the Prospectus entitled “Investment Objectives and Strategies—Investment Guidelines and Portfolio Allocation Targets” and all similar disclosure in the Prospectus:

In addition, under our investment guidelines our board of directors is required to approve any acquisition of a single property or portfolio of properties with a purchase price exceeding 10% of our most recent month-end total asset value (as measured under generally accepted accounting principles) plus the proceeds expected in good faith to be raised in our registered offering over the next twelve months.

The following supersedes and replaces first sentence of the third paragraph under the section of the Prospectus entitled “Investment Objectives and Strategies—Investments in Real Estate-Related Securities” and all similar disclosure in the Prospectus:

We may also invest in loans, which may include commercial mortgage loans, bank loans, mezzanine loans, other interests relating to real estate and debt of companies in the business of owning and/or operating real estate-related businesses.

Share Repurchases

The following supersedes and replaces the first sentence of the third paragraph under the section of the Prospectus entitled “Share Repurchase—Early Repurchase Deduction” and all similar disclosure in the Prospectus:

As set forth above, we may waive the Early Repurchase Deduction in respect of repurchase of shares resulting from the death of a stockholder who is a natural person, subject to the conditions and limitations described above, including shares held by such stockholder as a beneficiary of a trust or an IRA or other retirement or profit-sharing plan, after receiving written notice from the estate of the stockholder, the recipient of the shares through bequest or inheritance, or, in the case of a trust, the trustee of such trust, who shall have the sole ability to request repurchase on behalf of the trust.

Appendix A: Distribution Reinvestment Plan

The following supersedes and replaces the first sentence of the first paragraph under the Section of the Prospectus entitled “Appendix A: Distribution Reinvestment Plan—5. Purchase of Shares” and all similar disclosure in the Prospectus:

A. Participants will acquire Shares from the Company (including Shares purchased by the Company for the Plan in a secondary market (if available) or on a stock exchange (if listed)) under the Plan (the “Plan Shares”) at a price equal to the most recently disclosed transaction price per Share applicable to the class of Shares purchased by the Participant on the date that the distribution is payable (calculated as of the most recent month end).

All references to “ten days” or “10 days” under the Section of the Prospectus entitled “Appendix A: Distribution Reinvestment Plan” are hereby replaced with “ten business days.”

 

Quarterly Report on Form 10-Q for the Quarter Ended September 30, 2019

On November 14, 2019, we filed our Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 with the Securities and Exchange Commission. The report (without exhibits) is attached to this Supplement.


 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM                  TO                 

Commission File Number: 000-55931

 

 

Blackstone Real Estate Income Trust, Inc.

(Exact name of Registrant as specified in its charter)

 

 

 

 

Maryland

81-0696966

(State or other jurisdiction of

incorporation or organization)

345 Park Avenue

New York, NY

(Address of principal executive offices)

(I.R.S. Employer

Identification No.)

 

10154

(Zip Code)

Registrant’s telephone number, including area code: (212) 583-5000

 


Securities registered pursuant to Section 12(b) of the Act: None

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

 

 

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

  

Accelerated filer

 

 

 

 

 

Non-accelerated filer

 

  

Smaller reporting company

 

 

 

 

 

 

 

 

Emerging growth company

 

 

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    Yes      No  

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  

As of November 14, 2019, the issuer had the following shares outstanding: 499,191,747 shares of Class S common stock, 38,735,254 shares of Class T common stock, 78,041,510 shares of Class D common stock, and 408,084,624 shares of Class I common stock.

 

 


TABLE OF CONTENTS

 

PART I.

FINANCIAL INFORMATION

1

 

 

 

ITEM 1.

FINANCIAL STATEMENTS

1

 

 

 

 

Condensed Consolidated Financial Statements (Unaudited):

 

 

 

 

 

Condensed Consolidated Balance Sheets as of September 30, 2019 and December 31, 2018

1

 

 

 

 

Condensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30, 2019 and 2018

2

 

 

 

 

Condensed Consolidated Statements of Changes in Equity for the Three and Nine Months Ended September 30, 2019 and 2018

3

 

 

 

 

Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2019 and 2018

5

 

 

 

 

Notes to Condensed Consolidated Financial Statements

7

 

 

 

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

32

 

 

 

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

58

 

 

 

ITEM 4.

CONTROLS AND PROCEDURES

58

 

 

 

PART II.

OTHER INFORMATION

59

 

 

 

ITEM 1.

LEGAL PROCEEDINGS

59

 

 

 

ITEM 1A.

RISK FACTORS

59

 

 

 

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

60

 

 

 

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

61

 

 

 

ITEM 4.

MINE SAFETY DISCLOSURES

61

 

 

 

ITEM 5.

OTHER INFORMATION

61

 

 

 

ITEM 6.

EXHIBITS

62

 

 

 

SIGNATURES

63

 

 

 


 

PART I. FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

Blackstone Real Estate Income Trust, Inc.

Condensed Consolidated Balance Sheets (Unaudited)

(in thousands, except share and per share data)

 

 

 

September 30, 2019

 

 

December 31, 2018

 

Assets

 

 

 

 

 

 

 

 

Investments in real estate, net

 

$

20,744,467

 

 

$

10,259,687

 

Investments in real estate-related securities and loans

 

 

3,804,309

 

 

 

2,259,913

 

Cash and cash equivalents

 

 

155,674

 

 

 

68,089

 

Restricted cash

 

 

666,891

 

 

 

238,524

 

Other assets

 

 

926,015

 

 

 

410,945

 

Total assets

 

$

26,297,356

 

 

$

13,237,158

 

 

 

 

 

 

 

 

 

 

Liabilities and Equity

 

 

 

 

 

 

 

 

Mortgage notes, term loans, and secured revolving credit facilities, net

 

$

13,250,539

 

 

$

6,833,269

 

Repurchase agreements

 

 

2,646,334

 

 

 

1,713,723

 

Unsecured revolving credit facilities

 

 

 

 

 

 

Due to affiliates

 

 

532,160

 

 

 

301,581

 

Accounts payable, accrued expenses, and other liabilities

 

 

1,455,675

 

 

 

464,398

 

Total liabilities

 

 

17,884,708

 

 

 

9,312,971

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

Redeemable non-controlling interests

 

 

8,996

 

 

 

9,233

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Preferred stock, $0.01 par value per share, 100,000,000 shares authorized; no shares issued

   and outstanding as of September 30, 2019 and December 31, 2018

 

 

 

 

 

 

Common stock — Class S shares, $0.01 par value per share, 1,000,000,000 shares authorized;

   446,424,565 and 276,989,019 shares issued and outstanding as of September 30, 2019 and

   December 31, 2018, respectively

 

 

4,464

 

 

 

2,770

 

Common stock — Class T shares, $0.01 par value per share, 500,000,000 shares authorized;

   36,559,269 and 23,313,429 shares issued and outstanding as of September 30, 2019 and

   December 31, 2018, respectively

 

 

366

 

 

 

233

 

Common stock — Class D shares, $0.01 par value per share, 500,000,000 shares authorized;

   69,148,152 and 30,375,353 shares issued and outstanding as of September 30, 2019 and

   December 31, 2018, respectively

 

 

691

 

 

 

304

 

Common stock — Class I shares, $0.01 par value per share, 1,000,000,000 shares authorized;

   352,999,381 and 108,261,331 shares issued and outstanding as of September 30, 2019 and

   December 31, 2018, respectively

 

 

3,530

 

 

 

1,083

 

Additional paid-in capital

 

 

9,262,304

 

 

 

4,327,444

 

Accumulated deficit and cumulative distributions

 

 

(1,087,923

)

 

 

(587,548

)

Total stockholders' equity

 

 

8,183,432

 

 

 

3,744,286

 

    Non-controlling interests attributable to third party joint ventures

 

 

92,073

 

 

 

75,592

 

    Non-controlling interests attributable to BREIT OP unitholders

 

 

128,147

 

 

 

95,076

 

Total equity

 

 

8,403,652

 

 

 

3,914,954

 

Total liabilities and equity

 

$

26,297,356

 

 

$

13,237,158

 

 

See accompanying notes to condensed consolidated financial statements.

1


 

Blackstone Real Estate Income Trust, Inc.

Condensed Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

$

290,453

 

 

$

152,838

 

 

$

750,322

 

 

$

366,213

 

Hotel revenue

 

132,036

 

 

 

40,000

 

 

 

301,653

 

 

 

79,017

 

Other revenue

 

15,544

 

 

 

7,324

 

 

 

37,457

 

 

 

16,842

 

Total revenues

 

438,033

 

 

 

200,162

 

 

 

1,089,432

 

 

 

462,072

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental property operating

 

121,591

 

 

 

63,783

 

 

 

310,613

 

 

 

153,853

 

Hotel operating

 

89,951

 

 

 

26,822

 

 

 

204,468

 

 

 

51,958

 

General and administrative

 

4,548

 

 

 

3,027

 

 

 

12,607

 

 

 

7,973

 

Management fee

 

29,858

 

 

 

11,823

 

 

 

69,522

 

 

 

28,073

 

Performance participation allocation

 

56,322

 

 

 

12,447

 

 

 

106,383

 

 

 

29,796

 

Depreciation and amortization

 

204,653

 

 

 

103,758

 

 

 

505,986

 

 

 

262,708

 

Total expenses

 

506,923

 

 

 

221,660

 

 

 

1,209,579

 

 

 

534,361

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from real estate-related securities and loans

 

52,568

 

 

 

28,647

 

 

 

166,035

 

 

 

59,279

 

Gain on disposition of real estate

 

6,481

 

 

 

 

 

 

36,167

 

 

 

 

Interest income

 

1,763

 

 

 

82

 

 

 

2,260

 

 

 

280

 

Interest expense

 

(116,037

)

 

 

(65,711

)

 

 

(310,903

)

 

 

(146,943

)

Other income (expense)

 

(2,379

)

 

 

(283

)

 

 

(2,786

)

 

 

(672

)

Total other income (expense)

 

(57,604

)

 

 

(37,265

)

 

 

(109,227

)

 

 

(88,056

)

Net loss

$

(126,494

)

 

$

(58,763

)

 

$

(229,374

)

 

$

(160,345

)

Net loss attributable to non-controlling interests in third party joint ventures

$

1,305

 

 

$

433

 

 

$

4,311

 

 

$

3,054

 

Net loss attributable to non-controlling interests in BREIT OP

 

2,018

 

 

 

663

 

 

 

4,342

 

 

 

1,594

 

Net loss attributable to BREIT stockholders

$

(123,171

)

 

$

(57,667

)

 

$

(220,721

)

 

$

(155,697

)

Net loss per share of common stock — basic and diluted

$

(0.15

)

 

$

(0.17

)

 

$

(0.34

)

 

$

(0.57

)

Weighted-average shares of common stock outstanding, basic and diluted

 

819,055,389

 

 

 

342,351,542

 

 

 

647,729,961

 

 

 

274,226,898

 

 

See accompanying notes to condensed consolidated financial statements.

 

 

2


 

Blackstone Real Estate Income Trust, Inc.

Condensed Consolidated Statements of Changes in Equity (Unaudited)

(in thousands, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

controlling

 

 

controlling

 

 

 

 

 

 

 

Par Value

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Interests

 

 

Interests

 

 

 

 

 

 

 

Common

 

 

Common

 

 

Common

 

 

Common

 

 

Additional

 

 

Deficit and

 

 

Total

 

 

Attributable

 

 

Attributable

 

 

 

 

 

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Paid-in

 

 

Cumulative

 

 

Stockholders'

 

 

to Third Party

 

 

to BREIT OP

 

 

Total

 

 

 

Class S

 

 

Class T

 

 

Class D

 

 

Class I

 

 

Capital

 

 

Distributions

 

 

Equity

 

 

Joint Ventures

 

 

Unitholders

 

 

Equity

 

Balance at June 30, 2019

 

$

3,812

 

 

$

319

 

 

$

529

 

 

$

2,286

 

 

$

6,969,300

 

 

$

(845,511

)

 

$

6,130,735

 

 

$

113,725

 

 

$

131,915

 

 

$

6,376,375

 

Common stock issued

 

 

638

 

 

 

45

 

 

 

160

 

 

 

1,251

 

 

 

2,342,048

 

 

 

 

 

 

2,344,142

 

 

 

 

 

 

 

 

 

2,344,142

 

Offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(59,354

)

 

 

 

 

 

(59,354

)

 

 

 

 

 

 

 

 

(59,354

)

Distribution reinvestment

 

 

32

 

 

 

3

 

 

 

4

 

 

 

21

 

 

 

67,817

 

 

 

 

 

 

67,877

 

 

 

 

 

 

 

 

 

67,877

 

Common stock/units repurchased

 

 

(18

)

 

 

(1

)

 

 

(2

)

 

 

(29

)

 

 

(55,172

)

 

 

 

 

 

(55,222

)

 

 

 

 

 

(648

)

 

 

(55,870

)

Amortization of compensation awards

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

99

 

 

 

 

 

 

100

 

 

 

 

 

 

500

 

 

 

600

 

Net loss ($732 allocated to redeemable non-controlling interests)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(123,171

)

 

 

(123,171

)

 

 

(625

)

 

 

(1,966

)

 

 

(125,762

)

Distributions declared on common stock ($0.1594 gross per share)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(119,241

)

 

 

(119,241

)

 

 

 

 

 

 

 

 

(119,241

)

Contributions from non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,995

 

 

 

425

 

 

 

2,420

 

Distributions to non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(23,022

)

 

 

(2,079

)

 

 

(25,101

)

Allocation to redeemable non-controlling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2,434

)

 

 

 

 

 

(2,434

)

 

 

 

 

 

 

 

 

(2,434

)

Balance at September 30, 2019

 

$

4,464

 

 

$

366

 

 

$

691

 

 

$

3,530

 

 

$

9,262,304

 

 

$

(1,087,923

)

 

$

8,183,432

 

 

$

92,073

 

 

$

128,147

 

 

$

8,403,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

controlling

 

 

controlling

 

 

 

 

 

 

 

Par Value

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

Interests

 

 

Interests

 

 

 

 

 

 

 

Common

 

 

Common

 

 

Common

 

 

Common

 

 

Additional

 

 

Deficit and

 

 

Total

 

 

Attributable

 

 

Attributable

 

 

 

 

 

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Stock

 

 

Paid-in

 

 

Cumulative

 

 

Stockholders'

 

 

to Third Party

 

 

to BREIT OP

 

 

Total

 

 

 

Class S

 

 

Class T

 

 

Class D

 

 

Class I

 

 

Capital

 

 

Distributions

 

 

Equity

 

 

Joint Ventures

 

 

Unitholders

 

 

Equity

 

Balance at December 31, 2018

 

$

2,770

 

 

$

233

 

 

$

304

 

 

$

1,083

 

 

$

4,327,444

 

 

$

(587,548

)

 

$

3,744,286

 

 

$

75,592

 

 

$

95,076

 

 

$

3,914,954

 

Common stock issued

 

 

1,662

 

 

 

134

 

 

 

381

 

 

 

2,482

 

 

 

5,150,713

 

 

 

 

 

 

5,155,372

 

 

 

 

 

 

 

 

 

5,155,372

 

Offering costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(213,228

)

 

 

 

 

 

(213,228

)

 

 

 

 

 

 

 

 

(213,228

)

Distribution reinvestment

 

 

84

 

 

 

7

 

 

 

9

 

 

 

46

 

 

 

161,625

 

 

 

 

 

 

161,771

 

 

 

 

 

 

 

 

 

161,771

 

Common stock/units repurchased

 

 

(52

)

 

 

(8

)

 

 

(3

)

 

 

(84

)

 

 

(160,672

)

 

 

 

 

 

(160,819

)

 

 

 

 

 

(718

)

 

 

(161,537

)

Amortization of compensation awards