Executive Summary

BREIT delivered an estimated +4% year-over-year same property NOI growth in Q1 2025 (midpoint), with Class I net return of +1.9%—its best quarter since Q3’23—driven by healthy cash flow growth and strong sector exposure to rental housing, industrial, and data centers .
GAAP net loss widened in Q1, driven by sizable losses from unconsolidated entities, derivative losses, and elevated interest expense; management emphasized resilient fundamentals, collapsing new supply, and embedded rent growth as offsetting drivers for forward cash flows .
No formal financial guidance was provided; management highlighted macro themes (tariffs, inflation path, and lower cost of capital vs. 2023 peak) and reiterated portfolio positioning (Sunbelt/AI/data centers/reindustrialization) as key performance drivers .
No sell-side consensus estimates were available from S&P Global for EPS, revenue, or EBITDA; estimate-based beat/miss analysis is not applicable this quarter (values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well
- Same property NOI growth estimated at ~4% y/y, underpinned by healthy supply-demand fundamentals and portfolio concentration (~90%) in rental housing, industrial, and data centers; ~70% of assets are in faster-growing Sunbelt markets .
- Class I net return of +1.9% in Q1, outperforming volatile public markets; management: “BREIT is off to a strong start in 2025 amidst tremendous volatility...” .
- Data center platform (QTS) continues to scale: $25B+ development pipeline, 100% pre-leased to IG tenants with 15+ year terms; QTS represents 14.6% of BREIT’s real estate asset value and is positioned with predominantly domestic sourcing .
What Went Wrong
- GAAP net loss expanded materially: preliminary reconciliation shows losses from unconsolidated entities (approx. $746–$784m), derivative losses (~~$354–$372m), and high interest expense (~~$747–$785m) pressured results .
- Sequential revenue trend moderated from late 2024; Q1 2025 revenues were $1.83B vs. $1.87B in Q4 2024 and $1.96B in Q1 2024 (S&P Global) [Q4 revenue marked with asterisk; values retrieved from S&P Global] .
- Multifamily headwind from recent Sunbelt supply persisted, though management noted ~80% of BREIT’s multifamily markets are at/past peak supply with deliveries forecast to decline sharply over the next year .

Financial Results

Summary P&L and margins (oldest → newest)

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Billions)	$1.85	$1.87*	$1.83
Net Income ($USD Billions)	$(0.61)	$0.37*	$(1.70)
Diluted EPS - Continuing Ops ($)	$(0.162)	$0.099	$(0.467)
EBITDA Margin (%)	38.73%*	43.73%*	0.02%*
EBIT Margin (%)	(2.67%)*	1.19%*	(63.31%)*
Net Income Margin (%)	(30.01%)*	17.11%*	(131.51%)*

Asterisk denotes values retrieved from S&P Global. Values retrieved from S&P Global.

Year-over-year comparison (Q1 2025 vs. Q1 2024)

Metric	Q1 2024	Q1 2025
Revenue ($USD Billions)	$1.96	$1.83
Net Income ($USD Billions)	$(0.133)	$(1.70)
Diluted EPS - Continuing Ops ($)	$(0.033)	$(0.467)
Same Property NOI Growth (y/y)	—	~4% (midpoint est.)

Same Property NOI reconciliation (Q1 2025 preliminary, y/y context)

Item ($USD Millions)	Q1 2024	Q1 2025 (Low)	Q1 2025 (High)
Net loss	$(170.1)	$(1,802.6)	$(1,895.0)
Loss from unconsolidated entities	$24.4	$745.9	$784.1
Loss (income) from interest rate derivatives	$(315.2)	$353.6	$371.7
Interest expense	$831.7	$746.7	$784.9
NOI attributable to BREIT stockholders	$1,374.3	$1,322.1	$1,389.9
Less: Non-same property NOI	$143.7	$77.1	$81.1
Same property NOI (BREIT stockholders)	$1,230.6	$1,245.0	$1,308.9

Segment/mix snapshot and portfolio metrics

Metric	Value
Sector concentration	~90% in rental housing, industrial, and data centers
Region concentration	~70% Sunbelt (South/West U.S.)
Rental housing subsectors	Multifamily 21% (incl. senior <1%), Student 9%, Single-family rental 9% (incl. manufactured housing 1%), Affordable 8%
Industrial share	24% of real estate asset value
QTS data centers	$25B+ pipeline, 100% pre-leased; QTS = 14.6% of BREIT real estate asset value

Key performance indicators (KPIs)

KPI	Q1 2025
Same property NOI growth (y/y)	~4% (midpoint estimate)
Class I net return	+1.9% for Q1 2025
Distribution rate (pre-tax, Class I)	4.8% (with 2024 ROC of 96%; tax-equivalent 7.5%)
Industrial in-place rent vs. market	~22% embedded uplift
Portfolio embedded rent growth	~12% portfolio average; WA lease term 4.4 years

Guidance Changes

No formal quantitative guidance was issued. Management focused on macro and positioning commentary (tariffs/inflation path, cost of capital down vs. 2023 peak, supply declines in multifamily/industrial). No specific ranges were provided for revenue, margins, OpEx, OI&E, or tax rate; no dividend change commentary beyond reiterating distribution characteristics .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q	None	None	Maintained (no guidance)
Margins	FY/Q	None	None	Maintained (no guidance)
OpEx/OI&E/Tax	FY/Q	None	None	Maintained (no guidance)
Distributions	Ongoing	Distribution framework disclosed historically	4.8% Class I annualized rate cited; distributions not guaranteed	Informational (not guidance)

Earnings Call Themes & Trends

No earnings call transcript was located in the filings set this quarter; themes below reflect management’s Q1 update and prior 8-Ks.

Topic	Q3 2024 (Q-2)	Q4 2024 (Q-1)	Q1 2025 (Current)	Trend
Operating growth	Same property NOI growth >4% (9M)	Same property NOI growth >4% (FY)	Estimated ~4% y/y (Q1)	Stable mid-single-digit NOI growth
AI/data centers	Not discussed in detail	Not discussed in detail	QTS pipeline $25B+ 100% pre-leased; largest by leased MW; domestic sourcing limits tariff exposure	Strengthening, central to thesis
Supply dynamics	Not detailed	Not detailed	Multifamily/industrial supply down sharply; ~80% of multifamily markets at/past peak supply; cost inflation/tariffs to constrain new builds	Improving setup for rent growth
Tariffs/macro/inflation	Not detailed	Not detailed	Tariffs add near-term noise; inflation easing; cost of capital 15% lower vs. 1Y and 40% vs. 2023 peak	Constructive despite volatility
Reindustrialization	Not detailed	Not detailed	$700B+ announced US manufacturing capex; 3–5x spillover warehouse demand; BREIT positioned in key markets	Positive structural tailwind
Sunbelt/Regional	Not detailed	Not detailed	~70% Sunbelt concentration; durable housing demand; own vs. rent gap ~50%	Favorable

Management Commentary

“BREIT is off to a strong start in 2025 amidst tremendous volatility and declines in the public markets. Healthy cash flow growth powered a +1.9% net return in Q1 (Class I)…” .
“We believe now is the time to be invested in BREIT and we are excited to build on our momentum so far in 2025.” .
On portfolio positioning: “BREIT’s portfolio…is ~90% concentrated in rental housing, industrial and data centers and ~70% concentrated in fast-growing Sunbelt markets.” .
On data centers: “QTS…is the most active developer in the U.S. with a $25B+ development pipeline that is 100% pre-leased to investment-grade tenants with 15+ year leases.” .
On supply: “Multifamily and industrial supply [are] down two-thirds from 2022 levels to ten-year lows…tariffs will drive…replacement costs even higher and further constrain new supply.” .

Q&A Highlights

No Q&A available; management insights are drawn from the Q1 2025 8-K update and accompanying disclosures – –.

Estimates Context

S&P Global shows no Wall Street consensus estimates for Primary EPS, Revenue, EBITDA, or Target Price for Q1 2025 for BREIT; as such, beat/miss versus estimates cannot be assessed this quarter. Values retrieved from S&P Global.
Reported actuals from S&P Global fundamentals (used elsewhere in this recap where marked with an asterisk) indicate Q1 2025 revenue of $1.83B and diluted EPS of $(0.467), but no corresponding consensus figures are available for comparison . Values retrieved from S&P Global.

Key Takeaways for Investors

BREIT’s operating engine remains resilient: estimated ~4% y/y same property NOI growth, with favorable sector and regional mix and embedded rent growth (industrial ~22% market vs. in-place; portfolio ~12% average) .
GAAP earnings are noisy this quarter due to non-cash and market-related items (unconsolidated entity losses, derivative losses) and elevated interest expense; underwriting should emphasize cash flow/NOI trajectory rather than GAAP volatility .
Structural tailwinds (AI/cloud demand for data centers, U.S. reindustrialization, Sunbelt housing dynamics) plus constrained new supply support multi-year cash flow growth and asset value stability .
Capital markets backdrop is more constructive (cost of capital ~15% below last year and ~40% below 2023 peak), enhancing transactionability and refinancing options despite macro headlines .
Distribution profile remains a core attraction (4.8% Class I annualized pre-tax rate with high ROC component in 2024), though distributions are not guaranteed; tax treatment merits consideration .
With no formal guidance and limited sell-side coverage, monitoring monthly/quarterly updates on same property NOI, sector leasing, and QTS development progress will be key for intra-year checkpoints .
BREIT is non-exchange-listed (Form 8-K shows no securities registered under Section 12(b)), so focus on NAV total return, cash distributions, and liquidity plan rather than public market trading reaction .

Notes:

Asterisk denotes values retrieved from S&P Global. Values retrieved from S&P Global.

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