The Blackstone Fund BREIT Faces Big Questions

Amidst Wall Street whispers, the $59 billion Blackstone Real Estate Income Trust (BREIT) stands out with its asset valuations significantly higher than its peers, raising questions about the accuracy of these figures. Unlike many competitors facing devaluation due to rising interest rates and a weak property market, BREIT has maintained a robust 10.5% annual return since its inception in 2017.

The debate intensifies as scrutiny increases over how Blackstone appraises BREIT's assets, primarily when many firms employ third-party appraisers to ensure unbiased valuations. This practice affects the trustworthiness of the appraised values, which in turn influences the management fees Blackstone earns.