0
Blackstone Real Estate Income Trust (BREIT) Blackstone Advisory Partners L.P., Dealer Manager / Member FINRA
November 2018
This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, and must be read in conjunction with the prospectus in order to
understand fully all of the implications and risks of the offering to which this sales and advertising literature relates. A COPY OF THE PROSPECTUS MUST BE
MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING, AND IS AVAILABLE AT WWW.BREIT.COM
Blackstone
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1
Important Disclosure Information
SUMMARY OF RISK FACTORS
Blackstone Real Estate Income Trust, Inc. (BREIT) is a non-traded REIT that seeks to invest in stabilized
commercial real estate properties diversified by sector with a focus on providing current income. This
investment involves a high degree of risk. You should purchase these securities only if you can afford the
complete loss of your investment. You should read the prospectus carefully for a description of the risks
associated with an investment in Blackstone Real Estate Income Trust. Some of these risks include but are
not limited to the following:
Since there is no public trading market for shares of our common stock, repurchase of shares by us
will likely be the only way to dispose of your shares. Our share repurchase plan provides
stockholders with the opportunity to request that we repurchase their shares on a monthly basis, but
we are not obligated to repurchase any shares and may choose to repurchase only some, or even
none, of the shares that have been requested to be repurchased in any particular month in our
discretion. In addition, repurchases will be subject to available liquidity and other significant
restrictions. Further, our board of directors may modify, suspend or terminate our share repurchase
plan if it deems such action to be in our best interest and the best interest of our stockholders. As a
result, our shares should be considered as having only limited liquidity and at times may be illiquid.
We cannot guarantee that we will make distributions, and if we do we may fund such distributions
from sources other than cash flow from operations, including, without limitation, the sale of assets,
borrowings, return of capital or offering proceeds, and we have no limits on the amounts we may
pay from such sources.
The purchase and repurchase price per share for each class of common stock will vary and will
generally equal our prior month’s net asset value (“NAV”) per share, as determined monthly, plus
applicable upfront selling commissions and dealer manager fees. We may offer shares at a price that
we believe reflects the NAV per share of such stock more appropriately than the prior month’s
NAV per share in cases where we believe there has been a material change (positive or negative) to
our NAV per share since the end of the prior month.
We have no employees and are dependent on BX REIT Advisors L.L.C. (the “Advisor”) to conduct
our operations. The Advisor will face conflicts of interest as a result of, among other things, the
allocation of investment opportunities among us and other Blackstone accounts, the allocation of
time of its investment professionals and the substantial fees that we will pay to the Advisor.
On acquiring shares, you will experience immediate dilution in the net tangible book value of your
investment.
There are limits on the ownership and transferability of our shares.
If we fail to qualify as a REIT and no relief provisions apply, our NAV and cash available for
distribution to our stockholders could materially decrease.
We do not own the Blackstone name, but we are permitted to use it as part of our corporate name
pursuant to a trademark license agreement with an affiliate of The Blackstone Group L.P. (together
with its affiliates, “Blackstone”). Use of the name by other parties or the termination of our
trademark license agreement may harm our business.
While BREIT’s investment strategy is to invest in stabilized commercial real estate properties
diversified by sector with a focus on providing current income to investors, an investment in BREIT
is not an investment in fixed income. Fixed income has material differences from an investment in a
non-traded REIT, including those related to vehicle structure, investment objectives and restrictions,
risks, fluctuation of principal, safety, guarantees or insurance, fees and expenses, liquidity and tax
treatment.
We intend to continue to qualify as a REIT for U.S. federal income tax purposes. However, if we fail
to qualify as a REIT and no relief provisions apply, our NAV and cash available for distribution to
our stockholders could materially decrease.
The acquisition of investment properties may be financed in substantial part by borrowing, which
increases our exposure to loss. The use of leverage involves a high degree of financial risk and will
increase the exposure of the investments to adverse economic factors.
Investing in commercial real estate assets involves certain risks, including but not limited to: tenants’
inability to pay rent; increases in interest rates and lack of availability of financing; tenant turnover
and vacancies; and changes in supply of or demand for similar properties in a given market.
BREIT will directly own private real estate assets. Any references to “private real estate” and “direct
ownership” is referring to the BREIT strategy. Individual investors will own shares of common
stock in BREIT as opposed to direct ownership of private, non-traded real estate assets.
Numerical data is approximate and as of September 30, 2018. The words “we”, “us”, and “our” refer to
Blackstone Real Estate Income Trust, Inc., together with its consolidated subsidiaries, including BREIT
Operating Partnership L.P. (the “Operating Partnership”), a Delaware limited partnership of which we are
the general partner, unless the context requires otherwise. Numerical data relating to Blackstone includes
activities of Blackstone Real Estate’s public and private portfolio companies (unless otherwise noted).
IMPORTANT DISCLOSURE ABOUT OTHER BLACKSTONE REAL ESTATE FUNDS
This sales material includes information related to prior investments Blackstone Real Estate has made, in
which BREIT will not have any interest. Prospective investors should note that the investment programs,
objectives, leverage policies and strategies of Blackstone’s opportunistic real estate private equity funds
(the “Opportunistic Real Estate Private Equity Funds”), the Blackstone real estate debt funds (the “Real
Estate Debt Funds”), and core+ real estate private equity funds (the “Core+ Real Estate Private Equity
Funds”) are substantially different from the investment program and objectives of BREIT, despite each
strategy focusing on making real estate-related investments.
Specifically, the Opportunistic Real Estate Private Equity Funds invest in “opportunistic” real estate and
real estate-related assets globally (which often are undermanaged assets and with higher potential for
equity appreciation), the Real Estate Debt Funds primarily make real estate-related debt investments on an
opportunistic basis globally, the Core+ Real Estate Private Equity Funds invest in substantially stabilized
real estate across office, multifamily, industrial and retail sectors, with a focus on the major global markets
and total return, whereas BREIT is a publicly registered non-exchange traded perpetual life REIT that
generally targets primarily stabilized income-oriented commercial real estate across asset classes in the
United States and, to a lesser extent real estate-related securities, with a focus on current return. The
information provided herein regarding the Opportunistic Real Estate Private Equity Funds, the Real
Estate Debt Funds, and the Core+ Real Estate Private Equity Funds is, therefore, provided solely for
background purposes.
Blackstone
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Important Disclosure Information (Cont’d)
FORWARD-LOOKING STATEMENT DISCLOSURE
This sales material contains forward-looking statements about our business, including, in particular, statements about our plans, strategies and objectives. You can generally identify forward-looking statements by our
use of forward-looking terminology such as “may,” “will,” “seek,” “expect,” “intend,” “anticipate,” “estimate,” “believe,” “continue” or other similar words. These statements include our plans and objectives for
future operations, including plans and objectives relating to future growth and availability of funds, and are based on current expectations that involve numerous risks and uncertainties. Assumptions relating to these
statements involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to accurately predict and
many of which are beyond our control. Although we believe the assumptions underlying the forward-looking statements, and the forward-looking statements themselves, are reasonable, any of the assumptions could
be inaccurate and, therefore, there can be no assurance that these forward-looking statements will prove to be accurate and our actual results, performance and achievements may be materially different from that
expressed or implied by these forward-looking statements. In light of the significant uncertainties inherent in these forward looking statements, the inclusion of this information should not be regarded as a
representation by us or any other person that our objectives and plans, which we consider to be reasonable, will be achieved.
You should carefully review the “Risk Factors” section of our prospectus for a discussion of the risks and uncertainties that we believe are material to our business, operating results, prospects and financial condition.
Except as otherwise required by federal securities laws, we do not undertake to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
This sales material must be read in conjunction with the prospectus in order to fully understand all the implications and risks of the offering of securities to which it relates. This sales material is neither an offer to sell
nor a solicitation of an offer to buy securities. An offering is made only by the prospectus.
Neither the Securities and Exchange Commission, the Attorney General of the State of New York nor any other state securities regulator has approved or disapproved of these securities or determined if the
prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
ADDITIONAL IMPORTANT DISCLOSURES
This material was not created by any third party registered broker-dealers or investment advisers who are distributing shares of BREIT (each a “Dealer” and collectively, the “Dealers”). The Dealers have made no
independent verification of the information provided and do not guarantee the accuracy or completeness of such information.
This material is not to be reproduced or distributed to any other persons (other than professional advisors of the investors or prospective investors, as applicable, receiving this material) and is intended solely for the
use of the persons to whom it has been delivered.
The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments
mentioned may not be suitable for all clients. Any product discussed herein may be purchased only after a client has carefully reviewed the prospectus and executed the subscription documents. The Dealers have not
considered the actual or desired investment objectives, goals, strategies, guidelines, or factual circumstances of any investor in any fund(s). Before making any investment, each investor should carefully consider the
risks associated with the investment, as discussed in the applicable prospectus, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment
objectives and risk tolerance.
Alternative investments often are speculative and include a high degree of risk. Investors could lose all or a substantial amount of their investment. Alternative investments are suitable only for eligible, long-term
investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time. They may be highly illiquid and can engage in leverage and other speculative practices that may increase the volatility
and risk of loss. Alternative Investments typically have higher fees than traditional investments. Investors should carefully review and consider potential risks before investing.
All expressions of opinion are subject to change without notice and are not intended to be a forecast of future events or results. Further, opinions expressed herein may differ from the opinions expressed by a Dealer
and/or other businesses/affiliates of a Dealer. This is not a “research report” as defined by NASD Conduct Rule 2711 and was not prepared by the Research Departments of a Dealer or its affiliates.
Past performance is no guarantee of future results. Actual results may vary. Diversification does not assure a profit or protect against loss in a declining market.
Alternative investments involve complex tax structures, tax inefficient investing, and delays in distributing important tax information. Individual funds have specific risks related to their investment programs that will
vary from fund to fund. Clients should consult their own tax and legal advisors as Dealer does not provide tax or legal advice.
Interests in alternative investment products are offered pursuant to the terms of the applicable prospectus, are distributed by the applicable Dealer and certain of its affiliates, and (1) are not FDIC-insured, (2) are not
deposits or other obligations of such Dealer or any of its affiliates, (3) are not guaranteed by such Dealer and its affiliates, and (4) involve investment risks, including possible loss of principal. Each Dealer is a
registered broker-dealer, not a bank.
“Global Investment Committee”. Blackstone has a centralized investment process. Generally, significant equity investments are evaluated by the Global Investment Committee and significant debt investments are
evaluated by the BREDS Investment Committee. Smaller investments are evaluated by subsets of each committee, as applicable.
Blackstone
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Select BREIT Investments
Canyon Industrial Portfolio Various, U.S.
Emory Point Atlanta, GA
EdR Student Housing Portfolio Various, U.S.
HP Cold Storage Industrial Portfolio Various, U.S.
Aston Multifamily Portfolio Various, U.S.
JW Marriott San Antonio Hill Country Resort & Spa San Antonio, TX
Note: The selected images of certain BREIT investments above are provided for illustrative purposes only, are not representative of all BREIT investments of a given property type and are not representative of BREIT’s entire portfolio. It should not be assumed that BREIT's investment in the properties identified and discussed herein were or will be profitable. Please click here for a complete list of investments.
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Blackstone Overview
Blackstone is committed to investment excellence across the alternatives spectrum
Note: As of September 30, 2018. Past performance is not necessarily indicative of future results. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses. Figures indicated above reflect assets under management for each business unit. Real Estate assets under management reflect “investor capital” which, as used herein, includes co-investments and Blackstone’s GP and side-by-side commitments, as applicable. Credit AUM is a combined figure that includes GSO Capital Partners (“GSO”), Harvest Fund Advisors (“Harvest”), and Blackstone Insurance Solutions (“BIS”) businesses.
Founded in 1985; went public in 2007
30+ year investment record
$457 billion of assets under management
One of the world’s largest alternative
investment managers
Private
Equity
$126B
Real
Estate
$120B
Credit
$131B Hedge Fund
Solutions
$80B
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Blackstone Real Estate Overview
Blackstone is one of the world’s preeminent real estate investors
Note: As of September 30, 2018. Represents the Blackstone Real Estate business. For a description of BREIT’s strategy and investments, visit www.breit.com. (1) Includes GP and side-by-side commitments, as applicable. (2) See “Global Investment Committee” in “Important Disclosure Information” on page 2.
Scale One of the largest owners, buyers, sellers
and financiers of real estate
Market
Knowledge Proprietary information advantage
Investment
Process Same people, same process
Execution Move with speed and certainty
through complex situations
Blackstone
Real Estate
$120B Investor Capital
Under Management(1)
500 Professionals
Globally
1
Global Investment
Committee(2)
Blackstone Real Estate Advantages
Blackstone
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Blackstone Real Estate U.S. Portfolio
Blackstone’s U.S. Real Estate portfolio provides proprietary insight and access
Note: All figures reflect Blackstone Real Estate U.S. holdings as of September 30, 2018. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses. In addition to wholly-owned assets, figures include leased assets, collateral, assets managed through stakes in publicly-traded companies and assets owned through joint-ventures (reflected at 100%), as applicable. Multifamily includes other types of rental housing such as manufactured and student housing. The selected images above represent Blackstone’s U.S. Real Estate portfolio and are provided for illustrative purposes only. Properties depicted are owned by an affiliate of BREIT’s sponsor. BREIT does not own interests in the properties depicted above.
Multifamily 82k Units
Hospitality 132k Owned Keys
Retail 31M
Square Feet
Office 63M
Square Feet
Industrial 84M
Square Feet
Current U.S. Holdings
184 0 92 102 0 70 0 152 195 99 206 202 201 221 3 0 103 120
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BREIT Executive Summary
Blackstone brings institutional real estate to income-focused investors
BREIT
Strategy
Structure &
Terms
• Target Investments: Stabilized, income-oriented commercial real estate assets
− Up to 20% in real estate debt securities and cash for liquidity purposes
• Sector Focus: Diversified across property types
• Geographic Focus: Top 50 U.S. markets(1)
• Structure: Non-listed, perpetual monthly-valued REIT
• Subscriptions and Distributions: Monthly(2)
• Liquidity: Monthly repurchases(3)
• Leverage: Modest(4)
• Tax Reporting: Form 1099 - DIV
(3) Overall limit of 2% of NAV per month and 5% of NAV per calendar quarter. We are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be repurchased in any particular month in our discretion. See Offering Highlights for more detailed information.
(4) Leverage is measured on gross real estate assets (calculated using the greater of fair market value and cost of gross real estate assets, including equity in our securities portfolio), inclusive of property-level and entity-level debt net of cash, but excluding debt on our securities portfolio. Excludes effective leverage on liquid securities. NASAA policy limits up to 75% of total assets (300% of net assets), including leverage on liquid securities.
Note: Terms summarized herein represent some but not all investment terms, are for informational purposes and are qualified in their entirety by the more detailed information set forth in BREIT’s prospectus. You should read the prospectus carefully prior to making all investments.
(1) Represents BREIT’s target markets. Top 50 markets are comprised of the largest 50 metropolitan statistical areas by total population. U.S. Census Bureau, as of July 2017, released in May 2018. (2) There is no assurance we will pay distributions in any particular amount, if at all. Any distributions we make will be at the discretion of our board of directors. We may fund any distributions from sources other than cash flow from
operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of our common stock or Operating Partnership units to the Special Limited Partner, an affiliate of Blackstone), and we have no limits on the amounts we may pay from such sources.
U.S. Real Estate Investment Environment
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Blackstone
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2.0%
1.4%
Historical Average Today
1.6%
2.2%
2.9%
2016 2017 2018F
Real Estate Fundamentals
Strong economic growth paired with modest new supply
U.S. GDP Growth(1) U.S. New Construction(2)
Note: Represents Blackstone’s view of the current market environment as of the date appearing in this material only. Please refer to pages 1 and 2. There can be no assurance that the trends described herein will continue or not reverse.
(1) IMF World Economic Outlook, as of October 2018. (2) Citi Research, as of September 30, 2018. Total U.S. real estate new construction starts as a percent of aggregate supply for office, retail, industrial, multifamily and hotels. Historical average represents 1997-2006.
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Down
29%
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Real Estate Investment Environment
Private real estate income is a potential hedge to inflation
Note: Represents Blackstone’s view of the current market environment as of the date appearing in this material only. Please refer to pages 1 and 2. There can be no assurance that the trends described herein will continue or not reverse.
(1) As of December 31, 2017. Green Street Advisors, Bureau of Labor Statistics. Net operating income (NOI) growth represents the average NOI growth by year across the apartment, industrial, mall, office and strip retail sectors. The Consumer Price Index (CPI) measures changes in the prices paid by urban consumers for a representative basket of goods and services. NOI may not be correlated to or continue to keep pace with inflation.
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Real Estate Income and Inflation(1)
Indexed, 1995=100
● Private real estate income has increased
faster than inflation over the past 20+ years
● Growth in real estate income was driven by
a number of factors, including market rent
growth and rent escalation clauses
100
125
150
175
200
'95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17
Real Estate Net Operating Income U.S. CPI
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0.7%
1.7%
U.S. BREIT Markets
U.S. Real Estate Price Index by Sector(1)
Can’t Just “Buy the Index”
Sector and market selection critical in today’s environment
Note: Represents Blackstone’s view of the current market environment as of the date appearing in this material only. Please refer to pages 1 and 2. There can be no assurance that the trends described herein will continue or not reverse.
(1) Green Street Advisors, as of September 30, 2018. (2) U.S. Census Bureau, as of December 31, 2017, released in May 2018. (3) Represents BREIT markets that are greater than or equal to 1.5% of total asset value, as of September 30, 2018. Weighting is measured by total asset value of the aforementioned subset.
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Population Growth 5-Yr CAGR(2)
U.S. vs. BREIT Markets
2.3x
(3)
Multifamily
Strip Center
Malls
Industrial
Office
Major Sectors
80
85
90
95
100
105
110
115
120
Apr'17 Aug'17 Dec'17 Apr'18 Aug'18Sep’18
BREIT Overview
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BREIT Portfolio Snapshot
Sector and market selection largely driving performance
Portfolio Overview – September 30, 2018
$12.2B Total Asset Value
95% Occupancy(1)
351 Properties(1)
Sector Allocation(2) Geographic Allocation(2)
Note: Estimated as of September 30, 2018. Totals may not sum due to rounding. Financial data is estimated and unaudited.
(1) Reflects real estate property investments only and does not include investments in debt securities. Occupancy is weighted by the total asset value of all real estate properties, excluding hospitality investments. Occupancy includes all leased square footage as of the date indicated.
(2) Geography and property type weightings are measured as the total asset value of each category against the total asset value of all real estate properties. Multifamily includes other types of rental housing such as manufactured and student housing.
Multifamily 56%
Industrial 31%
Hospitality 11%
Retail 2%
South 39%
West 37%
East 14%
Midwest 10%
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Note: Estimated as of September 30, 2018. Totals may not sum due to rounding. Past performance does not guarantee future results. Financial data is estimated and unaudited. (1) Reflects the current month’s distribution annualized and divided by the prior month’s net asset value, which is inclusive of all fees and expenses. 100% of these distributions were funded from cash flows from operations. All distribution rates
shown are historical. There is no assurance we will pay distributions in any particular amount, if at all. Any distributions we make will be at the discretion of our board of directors. We may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of our common stock or Operating Partnership units to the Special Limited Partner, an affiliate of Blackstone), and we have no limits on the amounts we may pay from such sources.
(2) Returns shown reflect the percent change in the NAV per share from the beginning of the applicable period, plus the amount of any distribution per share declared in the period. All returns shown assume reinvestment of distributions pursuant to BREIT’s distribution reinvestment plan, are derived from unaudited financial information and are net of all BREIT expenses, including general and administrative expenses, transaction related expenses, management fees, performance participation allocation, and share class specific fees, but exclude the impact of early repurchase deductions on the repurchase of shares that have been outstanding for less than one year. Past performance is historical and not a guarantee of future results. Class T, Class S and Class D shares listed as (With Sales Load) reflect the returns after the maximum up-front selling commission and dealer manager fees. Class T, Class S and Class D shares listed as (No Sales Load) exclude up-front selling commissions and dealer manager fees. The inception dates for the Class I, S, D and T shares are January 1, 2017, January 1, 2017, May 1, 2017, and June 1, 2017, respectively. The returns have been prepared using unaudited data and valuations of the underlying investments in BREIT’s portfolio, which are estimates of fair value and form the basis for BREIT’s NAV. Valuations based upon unaudited reports from the underlying investments may be subject to later adjustments, may not correspond to realized value and may not accurately reflect the price at which assets could be liquidated.
14
BREIT Performance
Generating attractive current and total returns
(3) Inception to date (“ITD”) returns for BREIT are annualized. Returns are annualized by multiplying the ITD return by twelve months, divided by the number of months outstanding for the applicable share class. Please see footnote 3 above for the inception date of each class.
(4) Assumes payment of the full upfront sales charge at initial subscription (1.5% for Class D shares; 3.5% for Class S and Class T shares).
Annualized Distribution Rate(1) Annualized Inception to Date Performance(2,3)
Class I 10.55%
Class D (No Sales Load) 11.11%
Class D (With Sales Load)(4) 9.90%
Class S (No Sales Load) 9.72%
Class S (With Sales Load)(4) 7.46%
Class T (No Sales Load) 10.15%
Class T (With Sales Load)(4) 7.27%
5.85%
5.67%
5.00%
5.10%
Class I Class D Class S Class T
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BREIT Investment Themes
High conviction thematic investment approach
Note: The above are examples of select investment themes that Blackstone pursues when making investment decisions. These examples do not represent all themes that Blackstone may pursue and Blackstone does not pursue all of these investment themes for a single fund. As of September 30, 2018, the Industrial and Multifamily sectors accounted for 87% of BREIT’s total asset value. Please refer to page 14 for a more detailed summary of BREIT’s Sector Allocation. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses. See “Important Disclosure Information”. The selected images of certain BREIT investments above are provided for illustrative purposes only, are not representative of all BREIT investments of a given property type and are not representative of BREIT’s entire portfolio. It should not be assumed that BREIT's investment in the properties identified and discussed herein were or will be profitable. Please click here for a complete list of investments.
15
Signature at Kendall Multifamily Miami, FL
Rental housing shortage
creating favorable fundamentals
Multifamily
Nevada West Multifamily Las Vegas, NV
E-commerce supporting
growing industrial demand
Industrial
HP Cold Storage Industrial Portfolio Various, U.S.
Canyon Industrial Portfolio Various, U.S.
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1,517
1,204
Historical Average 2018
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BREIT Portfolio: Multifamily Sector
Housing undersupply supporting multifamily fundamentals
Note: As of September 30, 2018, unless otherwise indicated. Past performance is not necessarily indicative of future results. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses. Please refer to pages 1 and 2. The selected images of certain BREIT investments above are provided for illustrative purposes only, are not representative of all BREIT investments of a given property type and are not representative of BREIT’s entire portfolio.
(1) U.S. Census Bureau, as of September 30, 2018. 2018 represents September TTM. Historical average represents 1995-2004. (2) Multifamily includes other types of rental housing such as manufactured and student housing. Multifamily units include manufactured housing sites and student housing beds.
U.S. Housing Completions(1)
In Thousands
Down
21%
Multifamily Portfolio(2)
56% Share of BREIT’s
Real Estate Asset Value
38k
Units
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BREIT Portfolio: Industrial Sector
Industrial sector benefiting from continued e-commerce growth
Note: As of September 30, 2018, unless otherwise indicated. Past performance is not necessarily indicative of future results. There can be no assurance that any Blackstone fund or investment will achieve its objectives or avoid substantial losses. Please refer to pages 1 and 2. The selected images of certain BREIT investments above are provided for illustrative purposes only, are not representative of all BREIT investments of a given property type and are not representative of BREIT’s entire portfolio.
(1) E-commerce sales: Census Bureau, as of December 31, 2017. Vacancy: CBRE, as of September 30, 2018. 2017 represents Q3’18 data.
U.S. E-Commerce Sales and Industrial Vacancy(1) Industrial Portfolio
35M
Square Feet
31% Share of BREIT’s
Real Estate Asset Value
$260
$297
$339
$388
$448
6.9%
4.3%
2013 2014 2015 2016 2017
Sales (US$ in Billions) Vacancy Rate
Appendix
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Offering Highlights(1)
KEY TERMS
Product BREIT is a non-traded REIT focused on investing primarily in stabilized commercial real estate properties diversified by sector with a focus on providing
current income to investors
Structure Non-exchange traded, perpetual life real estate investment trust (REIT)
Portfolio allocation Targeting at least 80% to properties and up to 20% to real estate debt securities, cash and/or cash equivalents
Sponsor/advisor The Blackstone Group L.P. / BX REIT Advisors L.L.C.
Maximum offering $5 billion
Offering price(2) Generally equal to our prior month’s NAV per share for such class as of the last calendar day of such month, plus applicable selling commissions and dealer
manager fees
Subscriptions/NAV
frequency
• Monthly purchases as of the first calendar day of each month; subscription requests must be received at least five business days prior to the first calendar day
of the month
• NAV per share, which will generally be equal to our transaction price, will generally be available within 15 calendar days of month end
• Transaction price will be available on www.breit.com and in prospectus supplements. If the transaction price is not made available on or before the eighth
business day before the first calendar day of the month, or a previously disclosed transaction price for that month is changed, then we will provide notice of
such transaction to subscribing investors
Distributions Monthly (not guaranteed, subject to board approval)(3)
Minimum initial
investment(4) $2,500
Suitability standards(4) Either (1) a net worth of at least $250,000 or (2) a gross annual income of at least $70,000 and a net worth of at least $70,000. Certain states have additional
suitability standards. See the prospectus for more information.
Share repurchase plan
• Monthly repurchases will be made at the transaction price, which is generally equal to our prior month’s NAV
• Shares not held for at least one year will be repurchased at 95% of that month’s transaction price
• Overall limit of 2% of NAV per month and 5% of NAV per calendar quarter
• Repurchase requests must be received in good order by the second to last business day of the applicable month
• We are not obligated to repurchase any shares and may choose to repurchase only some, or even none, of the shares that have been requested to be
repurchased in any particular month in our discretion
• The share repurchase plan is subject to other limitations and our board may modify, suspend or terminate the plan
Tax reporting Form 1099-DIV
(1) Terms summarized herein are for informational purposes and qualified in their entirety by the more detailed information set forth in BREIT’s prospectus. You should read the prospectus carefully prior to making an investment. (2) We may offer shares at a price that we believe reflects the NAV per share of such stock more appropriately than the prior month’s NAV per share, including by updating a previously disclosed offering price, in cases where we believe there
has been a material change (positive or negative) to our NAV per share since the end of the prior month. (3) There is no assurance we will pay distributions in any particular amount, if at all. Any distributions we make will be at the discretion of our board of directors. We may fund any distributions from sources other than cash flow from
operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds (including from sales of our common stock or Operating Partnership units to the Special Limited Partner, an affiliate of Blackstone), and we have no limits on the amounts we may pay from such sources.
(4) Select broker-dealers may have different suitability standards, may not offer all share classes, and/or may offer BREIT at a higher minimum initial investment than $2,500. With respect to Class T shares, the amounts of upfront selling commissions and dealer manager fees may vary at select broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. The financial advisor and dealer stockholder servicing fee for Class T shares may also vary at select broker-dealers, provided that the sum of such fees will always equal 0.85% per annum of the aggregate NAV of such shares.
Blackstone
0 152 195 0 103 120 99 206 202 201 221 3 184 0 92 102 0 70
Highly Confidential & Trade Secret
20
ON
GO
ING
U
PF
RO
NT
SHARE CLASS-SPECIFIC FEES
CLASS I CLASS D CLASS S CLASS T
Availability Through fee-based (wrap) programs, registered investment advisors,
and other institutional and fiduciary accounts Through transactional/brokerage accounts
Selling commissions(2)
None Up to 1.5% Up to 3.5% Up to 3.0%
Dealer manager fee(2)
None None None 0.50%
Stockholder servicing fees(2)
(per annum, payable monthly) None 0.25% 0.85%
0.65% financial advisor
0.20% dealer
ADVISOR FEES
Management fee 1.25% per annum of NAV, payable monthly
Performance participation
allocation 12.5% of the annual total return, subject to a 5% annual hurdle amount and a high water mark
Offering Highlights(1) (Cont’d)
(1) Terms summarized herein are for informational purposes and qualified in their entirety by the more detailed information set forth in BREIT’s prospectus. You should read the prospectus carefully prior to making an investment.
(2) Select broker-dealers may have different suitability standards, may not offer all share classes, and/or may offer BREIT at a higher minimum initial investment than $2,500. With respect to Class T shares, the amounts of upfront selling commissions and dealer manager fees may vary at select broker-dealers, provided that the sum will not exceed 3.5% of the transaction price. The financial advisor and dealer stockholder servicing fee for Class T shares may also vary at select broker-dealers, provided that the sum of such fees will always equal 0.85% per annum of the aggregate NAV of such shares.
Blackstone
0 152 195 0 103 120 99 206 202 201 221 3 184 0 92 102 0 70
Highly Confidential & Trade Secret
21
Important Disclosure Information
KEY TERM DEFINITIONS
Performance participation allocation: The Special Limited Partner will hold a performance participation interest in the Operating Partnership that entitles it to receive an allocation from our Operating
Partnership equal to 12.5% of the Total Return, subject to a 5% Hurdle Amount and a High Water Mark (each term as defined below), with a catch-up. Such allocation will be made annually and accrue
monthly.
“Total Return” for any period since the end of the prior calendar year shall equal the sum of: (i) all distributions accrued or paid (without duplication) on the Operating Partnership units outstanding at the end
of such period since the beginning of the then-current calendar year plus (ii) the change in aggregate NAV of such units since the beginning of the year, before giving effect to (x) changes resulting solely from
the proceeds of issuances of Operating Partnership units, (y) any allocation/accrual to the performance participation interest and (z) applicable stockholder servicing fee expenses (including any payments made
to us for payment of such expenses). For the avoidance of doubt, the calculation of Total Return will (i) include any appreciation or depreciation in the NAV of units issued during the then-current calendar year
but (ii) exclude the proceeds from the initial issuance of such units.
“Hurdle Amount” for any period during a calendar year means that amount that results in a 5% annualized internal rate of return on the NAV of the Operating Partnership units outstanding at the beginning of
the then-current calendar year and all Operating Partnership units issued since the beginning of the then-current calendar year, taking into account the timing and amount of all distributions accrued or paid
(without duplication) on all such units and all issuances of Operating Partnership units over year.
“Loss Carryforward Amount” shall initially equal zero and shall cumulatively increase by the absolute value of any negative annual Total Return and decrease by any positive annual Total Return, provided that
the Loss Carryforward Amount shall at no time be less than zero. The effect of the Loss Carryforward Amount is that the recoupment of past annual Total Return losses will offset the positive annual Total
Return for purposes of the calculation of the Special Limited Partner’s performance participation. This is referred to as a “High Water Mark.”