To The Moon

Blackstone Is Buying REITs Hand Over Fist

Asset management giant Blackstone (BX) $Blackstone Group LP(BX)$boasts a portfolio of assets under management reaching nearly $1 trillion, made up largely of real estate. The asset manager partners with big money players like pension funds and insurance companies to provide strong returns and steady income.

Though Blackstone sometimes acquires individual real estate properties, such as The Bellagio in Las Vegas, it more often seeks opportunities to scoop up whole portfolios that will move the needle. This year, the company has set its sights particularly on acquisitions of real estate investment trusts ("REITs").

So far in 2022, Blackstone has bought or agreed to buy:

* Preferred Apartment Communities (APTS) for $5.8 billion

* American Campus Communities (ACC) for $12.8 billion

* PS Business Parks (PSB) for $7.6 billion

* Resource REIT (non-traded) for $3.7 billions

That is about $30 billion of real estate!

Clearly, as the Vanguard Real Estate Index (VNQ) has sold off along with the broader market this year, Blackstone believes that there is ample value to be found in REITs.

And Blackstone's financial capacity to continue scooping up undervalued REITs is massive. The asset management behemoth boasts roughly $50 billion in dry powder capital earmarked for global real estate, including a new real estate fund with over $24 billion in commitments from investors so far. There is no upper limit on the size of this new fund, so it could potentially grow significantly larger.

@TigerStars