Blackstone REIT Investors May Have Reason To Worry. Our BREIT Loss Attorneys Are Investigating Claims Of Losses
If you are an investor who has sustained serious losses in the $59B Blackstone Real Estate Income Trust (BREIT), contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. Our seasoned real estate investment trust (REIT) loss attorneys have been looking into this high-risk product since it first limited redemption requests starting in November 2022.
An annual report by BREIT stated that it paid out more to investors than it made in 2023—$2.8B in distributions, which was beyond its $2.7B of cash flows. The fund’s performance was impacted by requests by investors to get their money back. In February 2024, Blackstone REIT was able to fully pay all withdrawal requests since late 2022. For May 2024, its board decided to let the trust go beyond a 2% monthly limit order to satisfy such requests. Once a $70B behemoth, BREIT’s net asset value (NAV) has dropped significantly.
Now, analysts are questioning exactly how accurate this fund’s appraised value is given all the problems REITs have faced post-COVID, including a decline in real estate values. It didn’t help that when MacKenzie Capital extended a mini-tender offer to REIT shareholders to buy their Class S common stock shares, the price they proposed was 38% below NAV—another possible sign of investor losses.
It is important to note that this Blackstone Inc. property trust appears to have been impacted by rival Starwood REIT’s decision to limit redemption requests as it too faces liquidity issues. InvestmentNews reports that according to Blackstone President Gray, the problems that Starwood has been facing has compelled more BREIT investors to ask for their funds back.
Our REIT fraud lawyers are also investigating claims of losses involving Starwood REIT. Regulatory filings note that it only fulfilled $500M of $1.3B of investor withdrawals during the first quarter of 2024.
Why Contact Our BREIT Loss Attorneys?
During your free, initial case consultation, Shepherd Smith Edwards and Kantas BREIT Loss Attorneys can help you determine whether you have grounds for pursuing damages against the broker-dealer that may have unsuitably marketed Blackstone Real Estate Income Trust to you despite its troubles. This particular REIT should only have been sold to experienced, accredited investors. Yet even some of them, too, may have unsuitably recommended this illiquid investment.
You want to work with skilled non-traded REIT lawyers who understand the nature of these investments and why broker-dealers should be held liable. Unsuitability, misrepresentations and omissions, concentration, best interest violations, and a firm’s failure to supervise its financial advisors are some of the common reasons that broker fraud lawsuits end up filed.
This type of dispute between a brokerage firm and a customer is often brought to FINRA arbitration, which is a different legal forum from court. We have been representing investors against stockbrokers in arbitration, mediation, and litigation for decades. More than 90% of our clients have received full or partial financial recovery through our dedication and hard work.
How To Contact Our BREIT Loss Attorneys
Call (800) 259-9010 or fill out this form.