Blackstone Real Estate Income Trust Inc.
10/22/2026 | Press release | Distributed by Public on 10/22/2026 04:50
Business/Financial Results (Form 8-K)
Item 2.02 Results of Operations and Financial Condition
Certain Preliminary Estimated Unaudited Financial Results for the Nine Months ended September 30, 2026
On October 22, 2026, Blackstone Real Estate Income Trust, Inc., a Maryland corporation ("BREIT" or the "Company"), announced preliminary estimated unaudited same property net operating income ("NOI") for the nine months ended September 30, 2026. Based upon preliminary estimated financial results, the Company expects same property NOI for the nine months ended September 30, 2026 to have increased approximately 3% from the same period in the prior year (based on the midpoint of the preliminary estimated range of same property NOI). This data is not a comprehensive statement of the Company's financial results for the nine months ended September 30, 2026, and the Company's actual results may differ materially from this preliminary estimated data.
NOI is a supplemental non-Generally Accepted Accounting Principles ("GAAP") measure of the Company's property operating results that the Company believes is meaningful because it enables management to evaluate the impact of occupancy, rents, leasing activity, and other controllable property operating results at the Company's real estate. The Company defines NOI as operating revenues less operating expenses, which exclude (i) impairment of investments in real estate, (ii) depreciation and amortization, (iii) straight-line rental income and expense, (iv) amortization of above- and below-market lease intangibles, (v) amortization of accumulated unrealized gains on derivatives previously recognized in other comprehensive income, (vi) lease termination fees, (vii) portfolio-level corporate costs, (viii) other non-property related revenue and expense items such as (a) general and administrative expenses, (b) management fee, (c) performance participation allocation, (d) incentive compensation awards, (e) income from investments in real estate debt, (f) change in net assets of consolidated securitization vehicles, (g) income (loss) from interest rate derivatives, (h) net gain on dispositions of real estate, (i) interest expense, net (j) gain (loss) on extinguishment of debt, (k) other income (expense), (l) buyout costs and (ix) similar adjustments for NOI attributable to non-controlling interests and unconsolidated entities.
The Company evaluates its consolidated results of operations on a same property basis, which allows the Company to analyze its property operating results excluding acquisitions and dispositions during the periods under comparison. Properties in the Company's portfolio are considered same property if they were owned for the full periods presented, otherwise they are considered non-same property. Recently developed properties are not included in same property results until the properties have achieved stabilization for both full periods presented. We define stabilization for the property as the earlier of (i) achieving 90% occupancy, (ii) 12 months after receiving a certificate of occupancy, or (iii) for Data Centers 12 months after receiving a certificate of occupancy and greater than 50% of its critical IT capacity has been built. Certain assets are excluded from same property results and are considered non-same property, including (i) properties held-for-sale, (ii) properties that are being re-developed, (iii) properties identified for future sale, and (iv) interests in unconsolidated entities under contract for sale with hard deposit or other factors ensuring the buyer's performance. The Company does not consider its investments in the real estate debt segment or equity securities to be same property.
Same property NOI assists in eliminating disparities in net income due to the acquisition, disposition, development, or redevelopment of properties during the periods presented, and therefore the Company believes it provides a meaningful performance measure for the comparison of the operating performance of the Company's properties, which it believes is useful to investors. The Company's same property NOI may not be comparable to that of other companies and should not be considered to be more relevant or accurate in evaluating the Company's operating performance than the Company's GAAP net income (loss).
While the Company currently expects its results for the nine months ended September 30, 2026 to be within the ranges set forth below, the review of the Company's financial statements for the nine months ended September 30, 2026 has not been completed. During the course of the Company's preparation of its financial statements and related notes and the completion of the review for the nine months ended September 30, 2026, additional adjustments to the preliminary estimated financial information presented below may be identified. Any such adjustments may be material. The Company's independent registered public accounting firm, Deloitte & Touche LLP, has not audited, reviewed, compiled or performed any procedures with respect to this preliminary financial data, and, accordingly, Deloitte & Touche LLP does not express an opinion or any other form of assurance with respect thereto.
The following table reconciles preliminary estimated GAAP net loss to preliminary estimated same property NOI for the nine months ended September 30, 2026 and 2025 (Unaudited, $ in thousands):
| Nine months ended September 30, | ||||||||||||||||||||
| 2026 | 2025 | |||||||||||||||||||
| Estimated | Actual | |||||||||||||||||||
| Low | High | |||||||||||||||||||
| Net loss | $ | (1,119,137) | $ | (1,176,529) | $ | (3,122,284) | ||||||||||||||
| Adjustments to reconcile to same property NOI | ||||||||||||||||||||
| Management fee | 530,115 | 530,115 | 502,074 | |||||||||||||||||
| Performance participation allocation | 562,788 | 562,788 | 355,028 | |||||||||||||||||
| Impairment of investments in real estate | 703,068 | 739,122 | 368,757 | |||||||||||||||||
| Depreciation and amortization | 2,169,156 | 2,280,394 | 2,424,225 | |||||||||||||||||
| (Income) loss from unconsolidated entities | (447,647) | (470,603) | 887,816 | |||||||||||||||||
| Income from investments in real estate debt | (215,027) | (226,055) | (408,928) | |||||||||||||||||
| Change in net assets of consolidated securitization vehicles | (35,915) | (37,757) | (89,005) | |||||||||||||||||
| (Income) loss from interest rate derivatives | (71,593) | (75,265) | 758,028 | |||||||||||||||||
| Net gain on dispositions of real estate | (1,181,569) | (1,242,163) | (933,186) | |||||||||||||||||
| Interest expense, net | 1,926,830 | 2,025,642 | 2,312,297 | |||||||||||||||||
| Portfolio-level corporate costs | 457,371 | 480,827 | 463,857 | |||||||||||||||||
| Other | (3,201) | 52,680 | 58,651 | |||||||||||||||||
| NOI from unconsolidated entities | 1,036,626 | 1,089,786 | 801,416 | |||||||||||||||||
| NOI attributable to non-controlling interests in consolidated subsidiaries and BREIT OP unit holders | (331,029) | (348,003) | (345,167) | |||||||||||||||||
| NOI attributable to BREIT stockholders | 3,980,836 | 4,184,979 | 4,033,579 | |||||||||||||||||
| Less: Non-same property NOI attributable to BREIT stockholders | 518,602 | 545,197 | 595,208 | |||||||||||||||||
| Same property NOI attributable to BREIT stockholders | $ | 3,462,234 | $ | 3,639,782 | $ | 3,438,371 | ||||||||||||||
CAUTIONARY LANGUAGE CONCERNING FORWARD-LOOKING STATEMENTS
Blackstone Real Estate Income Trust Inc. published this content on October 22, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on October 22, 2026 at 10:50 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]