Executive Summary

BREIT reported preliminary same property NOI growth of approximately 3% for the nine months ended September 30, 2025, with same property NOI attributable to stockholders in a range of $3.495B–$3.674B versus $3.493B in the prior year, indicating steady operational performance despite macro headwinds .
Net loss for the nine months widened to a range of $(3.044)B–$(3.200)B (vs. $(1.360)B prior year), driven by higher losses from unconsolidated entities, losses from interest rate derivatives, and elevated interest expense .
Monthly cash distributions were maintained and modestly increased sequentially: gross distribution per share rose from $0.0548 in September to $0.0552 in October across share classes, with net amounts varying by servicing fees .
Strategic updates: BREIT launched a DST program and new L/L-2 share classes (with lower management fee rates of 1.00% and 0.85% vs. 1.25% for other classes) and amended its share repurchase plan, positioning for incremental capital formation and investor segmentation .
No Q3 earnings call transcript was filed; investor communication came via 8-Ks and a Q2 update presentation; narrative remains constructive on the “3 C’s” recovery thesis (collapsing construction, capital market strength, cash flow growth) .

What Went Well and What Went Wrong

What Went Well

Same property NOI growth: Preliminary nine-month same property NOI grew ~3% YoY (midpoint), reflecting resilient property-level cash flows despite broader market volatility .
Distributions: BREIT declared October distributions consistent with its steady monthly payout cadence; gross per-share increased to $0.0552 across classes (net varies by servicing fee), supporting investor yield objectives .
Strategic positioning: Management emphasized the “3 C’s” recovery and high-conviction sector mix (housing, industrial, data centers), with confidence in continuing strength: “We believe the key pillars of the real estate recovery—the ‘3 C’s’—are firmly in place” and “As we look ahead to the balance of the year, we are confident in BREIT’s potential to navigate the market and deliver for our investors” .

What Went Wrong

Loss drivers: Nine-month net loss widened to $(3.044)B–$(3.200)B vs. $(1.360)B in the prior year, with elevated losses from unconsolidated entities ($0.866B–$0.910B vs. $0.137B prior year) and losses from interest rate derivatives ($0.739B–$0.777B) pressuring results .
Interest expense: Net interest expense remained high at $2.254B–$2.370B for nine months, continuing to weigh on GAAP profitability despite operational NOI growth .
Leadership transition: Following the late-July passing of CEO Wesley LePatner, the Board appointed Rob Harper as Interim CEO; while continuity is highlighted, investors may watch for strategic/tone stability through the transition .

Financial Results

Metric	Q4 2024	Q1 2025	Q2 2025	Q3 2025
Revenue ($USD Billions)	$1.87*	$1.83*	$1.77*	$1.72*
Net Income ($USD Billions)	$0.37*	$(1.70)*	$(0.49)*	$(0.64)*
Diluted EPS - Continuing Ops ($USD)	$0.10*	$(0.47)*	$(0.14)*	$(0.18)*
EBITDA ($USD Billions)	$0.94*	~$0.00*	$0.82*	$0.56*
EBIT ($USD Billions)	$0.03*	$(0.82)*	$0.02*	$(0.22)*
EBITDA Margin (%)	43.73%*	0.02%*	40.33%*	31.13%*
Net Income Margin (%)	17.11%*	(131.51%)*	(24.12%)*	(35.61%)*
EBIT Margin (%)	1.19%*	(63.31%)*	0.86%*	(12.29%)*

Values retrieved from S&P Global.*

Cross-check to documents: For nine months ended Sept 30, 2025, GAAP net loss was preliminarily $(3.044)B–$(3.200)B (vs. $(1.360)B prior year), and same property NOI $3.495B–$3.674B (vs. $3.493B prior year) .

Segment composition (latest disclosed):

Segment	Weight (% of Real Estate Asset Value)	Details
Rental Housing	46%	Multifamily 20% (incl. senior <1%), Student 9%, SFR 9% (incl. manufactured 1%), Affordable 8%
Industrial	24%	Logistics & Flex categories per CoStar definition
Data Centers	16.1% (QTS at 35% ownership)	Exposure cited “grown from 10% to 17% today” (as of Q2 update narrative)

KPIs:

KPI	9M 2024	9M 2025 Low	9M 2025 High
Same Property NOI Attributable to Stockholders ($USD Billions)	$3.493	$3.495	$3.674
GAAP Net Loss ($USD Billions)	$(1.360)	$(3.044)	$(3.200)

Distributions (October 2025):

Share Class	Gross Distribution ($/share)	Servicing Fee ($/share)	Net Distribution ($/share)
Class I	$0.0552	$0.0000	$0.0552
Class S	$0.0552	$0.0101	$0.0451
Class S-2	$0.0552	$0.0100	$0.0452
Class D	$0.0552	$0.0029	$0.0523
Class D-2	$0.0552	$0.0029	$0.0523
Class T	$0.0552	$0.0099	$0.0453
Class T-2	$0.0552	$0.0099	$0.0453

Guidance Changes

Metric	Period	Previous Guidance/Declared	Current Guidance/Declared	Change
Monthly cash distribution per share (gross)	Sep 2025 → Oct 2025	$0.0548 (Sep)	$0.0552 (Oct)	Raised
Net distribution (Class I)	Sep 2025 → Oct 2025	$0.0548	$0.0552	Raised
Net distribution (Class S)	Sep 2025 → Oct 2025	$0.0451	$0.0451	Maintained
Net distribution (Class D)	Sep 2025 → Oct 2025	$0.0520	$0.0523	Raised
Adviser management fee rate	Ongoing	1.25% (most classes)	1.25% (most classes); 1.00% (Class L); 0.85% (Class L-2)	Introduced L/L-2 lower rates
Share repurchase plan	Effective Nov 3, 2025	Prior plan	Amended to incorporate new L/L-2 classes	Amended

Note: BREIT did not provide quantitative revenue/EPS guidance; communications were focused on distributions and structural program enhancements .

Earnings Call Themes & Trends

No Q3 earnings call transcript was filed; themes are drawn from Q2 2025 investor update and Q3 8-Ks.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q3 2025)	Trend
AI/data centers	Data center exposure “grown from 10% to 17%”; QTS 10x growth in leased MW since 2021; $25B+ pipeline; 11% YTD leasing; 35% ownership; 16.1% of real estate asset value	No new leasing metrics in Q3 filings; strategic focus unchanged	Stable-to-positive narrative
Capital markets	CMBS issuance up ~40% YoY; cost of capital down ~15% vs 2024 and ~40% vs 2023 peak	Continued operational resilience; distributions maintained/raised	Improving financing backdrop
Supply/demand (housing/industrial)	Collapsing construction, housing starts at 1960s levels; industrial reindustrialization tailwinds	Same property NOI up ~3% for nine months	Supportive fundamentals
Macro/tariffs	Tariffs tightening supply; construction costs near doubled since 2019	No new Q3 macro detail beyond NOI update	Neutral
Regulatory/structural	Q2: operational update; Q3: launch DST program; new L/L-2 classes; amended advisory and OP agreements; amended repurchase plan	Structural initiatives executed	Positive (platform development)
Leadership	Interim CEO Rob Harper appointed in August	Continued continuity through Q3	Watch for stability

Management Commentary

“We believe the key pillars of the real estate recovery—the ‘3 C’s’—are firmly in place.” (BREIT Q2 2025 Update) .
“As we look ahead to the balance of the year, we are confident in BREIT’s potential to navigate the market and deliver for our investors.” (BREIT Q2 2025 Update) .
October distributions were declared across all classes (gross $0.0552), reinforcing the monthly income profile for stockholders .
Strategic actions: BREIT launched a DST program with a fair market value purchase option and introduced new L/L-2 share classes with differentiated management fee rates (1.00% and 0.85%), and amended the repurchase plan to incorporate these classes .

Q&A Highlights

No Q3 earnings call transcript was filed; no Q&A available. Investor communications were via 8-Ks and the Q2 update .

Estimates Context

S&P Global consensus estimates for BSTT were unavailable for EPS and revenue; as a result, comparisons to sell-side expectations cannot be made. Values retrieved from S&P Global.*
Reported actual revenue in S&P Global for Q1–Q3 2025 shows $1.290B (Q1), $2.025B (Q2), $1.794B (Q3), but without consensus metrics or number of estimates, we cannot assess beats/misses.*

Key Takeaways for Investors

Operating resilience: Same property NOI was up ~3% for nine months; despite wider GAAP losses driven by non-cash and financing items, property-level performance remains stable .
Income continuity: Monthly distributions were maintained/raised in October; net amounts vary by share class servicing fees—Class I’s net rose to $0.0552; Class D net increased to $0.0523 .
Strategic optionality: DST program and new L/L-2 classes broaden capital formation channels and tailor fee structures; repurchase plan amended to support new classes .
Sector positioning: Continued emphasis on rental housing, industrial, and data centers with embedded rent growth potential and long-dated, investment-grade DC contracts, offering medium-term upside as capital markets normalize .
Watch financing costs: Elevated net interest expense and derivative losses materially impact GAAP results; further declines in financing costs would be a key lever for improved reported profitability .
Leadership continuity: Interim CEO appointment positions BREIT with experienced leadership; monitor future updates for strategic/tone continuity .
Trading implications: BREIT is non-listed; investor focus centers on NAV trajectory, distributions, and liquidity via the share repurchase plan rather than public market price moves .

Footnote: Values retrieved from S&P Global.*

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