Blackstone Real Estate Income Trust Reports $568.98 Million Net Loss for Q2 2025

Blackstone Real Estate Income Trust, Inc. (BREIT) reported a net loss of $568.98 million for the three months ended June 30, 2025, compared to a net loss of $582.01 million for the same period in 2024. Total revenues for the quarter were $1.998 billion, a decrease of 7.4% from $2.159 billion year-over-year. The decline in revenue was primarily driven by a drop in rental revenue, which fell to $1.771 billion from $1.913 billion, attributed to a decrease in Non-Same Property revenues due to real estate dispositions. Hospitality revenue also decreased to $139.2 million from $150.1 million, reflecting similar trends in property sales.

In terms of expenses, BREIT reported total expenses of $2.179 billion for the quarter, up from $2.106 billion in the prior year. The increase was largely due to a rise in impairment charges, which totaled $171.1 million, compared to $118.0 million in the previous year. The management fee decreased to $166.9 million from $180.7 million, reflecting a lower average net asset value (NAV). The performance participation allocation expense surged to $88.8 million, a significant increase from a reversal of $105 million in the prior year, indicating a stronger total return for the current period.

Operationally, BREIT's portfolio consisted of 4,530 properties and 62,150 single-family rental homes as of June 30, 2025. The company disposed of 62 properties during the quarter, generating net proceeds of approximately $1.96 billion and recognizing a net gain of $464.4 million. The company’s investments in real estate debt totaled $6.2 billion, with a diversified portfolio that includes commercial mortgage-backed securities (CMBS) and residential mortgage-backed securities (RMBS). The company also reported a decrease in cash and cash equivalents to $2.88 billion from $2.59 billion year-over-year.

Looking ahead, BREIT remains focused on its strategy of investing in stabilized, income-generating commercial real estate primarily in the U.S. The company has registered a new offering with the SEC for up to $60 billion in shares, which it plans to use for ongoing investments and to fund repurchase requests. As of August 13, 2025, BREIT had raised cumulative net proceeds of $78.3 billion from its continuous public offering. The company’s management expressed optimism about the commercial real estate market, citing improved conditions and lower market volatility as potential catalysts for future growth.