Executive Summary

BREIT reported preliminary FY 2024 same property NOI growth of “more than 4%” year over year, consistent with the >4% cadence communicated at 6M and 9M checkpoints, supported by strong operating performance in core sectors .
FY 2024 GAAP results reflect significant non‑cash and financing items: net loss of $(928.2)–$(975.8) million, with large depreciation and amortization ($3.48–$3.66 billion), interest expense ($3.25–$3.42 billion), and meaningful net gains on real estate dispositions ($(2.08)–$(2.18) billion) .
Portfolio positioning continues to emphasize secular tailwinds (data centers, industrial, rental housing), with management highlighting QTS’s $22B+ pre‑leased pipeline and industrial re‑leasing spreads of 42% (as of Q2 2024), underpinning embedded growth and pricing power as new supply normalizes .
No formal revenue/EPS guidance or Wall Street consensus estimates were available for Q4 2024; investor attention remains on sector fundamentals, asset sales activity, and capital markets normalization (repurchases fully met for six consecutive months and subscriptions improved in Q2 2024) .

What Went Well and What Went Wrong

What Went Well

Same property NOI growth remained resilient, with “more than 4%” YoY for FY 2024, echoing earlier six- and nine‑month updates, signaling consistent operating momentum across the portfolio .
Data centers are a powerful growth engine: “Data centers, powered by the explosive growth of A.I., continued to drive BREIT’s performance… contributed ~500 bps to our performance in the last twelve months,” and QTS is “the fastest‑growing data center company with a $22B+ development pipeline pre‑leased to the world’s largest technology companies” .
Industrial fundamentals remain attractive with “re‑leasing spreads… 42%” and “market rents 28% above in‑place rents,” indicating embedded rent uplift as construction starts remain 72% below 2022 peak (as of Q2 2024) .

What Went Wrong

FY 2024 GAAP net loss was sizable due to structural non‑cash items and financing costs: depreciation and amortization ($3.48–$3.66B), interest expense ($3.25–$3.42B), and losses from interest rate derivatives ($203–$213M) .
Derivatives volatility swung intra‑year: nine months reflected losses of $525–$580M vs. six months showing income of $249–$276M, highlighting sensitivity to rate/hedging marks .
Apartment rent growth slowed in certain traditional markets (short‑term supply pressure), though management expects acceleration as new supply “will collapse in the next year” (as of Q2 2024) .

Financial Results

Metric ($USD Thousands)	6M 2023 (Actual)	9M 2023 (Actual)	FY 2023 (Actual)	6M 2024 (Est. Low–High)	9M 2024 (Est. Low–High)	FY 2024 (Est. Low–High)
GAAP Net (Loss) Income	$16,489	$533,116	$(979,961)	$(714,146)–$(789,320)	$(1,291,763)–$(1,427,739)	$(928,215)–$(975,815)
Same Property NOI (BREIT stockholders)	$2,450,539	$3,560,587	$4,646,117	$2,490,755–$2,618,486	$3,620,889–$3,806,574	$4,715,578–$4,957,406
Depreciation & Amortization	$1,987,021	$2,915,884	$3,811,218	$1,802,542–$1,802,542	$2,650,756–$2,650,756	$3,484,091–$3,662,763
Interest Expense	$1,527,881	$2,336,050	$3,072,741	$1,605,092–$1,774,049	$2,415,455–$2,669,713	$3,252,471–$3,419,265
Net Gain on Real Estate Dispositions	$789,827	$1,775,016	$1,935,021	$268,321–$296,565	$1,207,842–$1,334,984	$2,076,949–$2,183,459
Loss from Interest Rate Derivatives	$153,587	$(257,068)	$755,519	$(249,434)–$(275,690)	$525,018–$580,283	$202,980–$213,390

Segment concentration (asset value mix; as of Q2 2024):

Segment	Concentration
Data Centers	10%
Industrial	25%
Rental Housing – Multifamily	23%
Rental Housing – Student Housing	11%
Rental Housing – Single Family Rental	10%
Rental Housing – Affordable Housing	8%
QTS Investment (within Data Centers)	9.3%
Sunbelt Exposure (South & West)	~70%

Key KPIs (portfolio and capital flows; as of Q2/Q3 checkpoints):

KPI	Value
Industrial Re‑leasing Spreads	42%
Industrial Market Rents Above In‑Place Rents	28%
Data Center Rent Growth (2024 est.)	17% (Wells Fargo estimate)
QTS Development Pipeline (pre‑leased)	$22B+
Repurchase Requests	100% met for six consecutive months; requests down 87% since Jan 2023
Subscriptions	~$900M raised in Q2 2024
Same Property NOI Growth vs PY	“More than 4%” (6M, 9M, FY 2024)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Same Property NOI Growth vs Prior Year	FY 2024	Not provided	“More than 4%”	Maintained narrative (>4%) from 6M/9M updates
Revenue / EPS / Margins	FY 2024	Not provided	Not provided	N/A

No formal revenue/EPS/OpEx/tax guidance was issued in the reviewed filings .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q4 2024)	Trend
AI/Data Centers	Data centers drove ~500 bps LTM performance; QTS fastest‑growing with $22B+ pipeline; sector in “early innings”	Preliminary full‑year results; same property NOI >4% YoY; limited qualitative detail in 8‑K	Structural tailwind maintained
Industrial/E‑commerce	42% re‑leasing spreads; market rents 28% above in‑place; construction starts down 72% vs 2022	Continued operating strength implied in NOI trajectory; limited detail in 8‑K	Healthy fundamentals; embedded growth
Rental Housing Supply/Demand	Short‑term rent moderation; expectation for supply “to collapse” next year; Sunbelt overweight (~70%)	Same property NOI growth sustained; no new housing commentary in Q4 8‑K	Setup favorable as new supply falls
Capital Markets/Fundraising/Repurchases	100% repurchase requests met for six consecutive months; requests down 87%; ~$900M raised in Q2	No specific Q4 updates in the 8‑K; focus on full‑year preliminary reconciliation	Improving investor flows (prior trend)
Rates/Derivatives	Intra‑year swings: income at 6M, losses at 9M; sensitivity to rate marks	FY derivative loss $203–$213M	Volatility normalizing vs 9M spike

Management Commentary

“Data centers, powered by the explosive growth of A.I., continued to drive BREIT’s performance this quarter and have contributed ~500 bps to our performance in the last twelve months.”
“QTS has tripled in size and today it is the fastest‑growing data center company with a $22B+ development pipeline pre‑leased to the world’s largest technology companies.”
“E‑commerce is another tailwind… BREIT’s re‑leasing spreads in the sector remain high at 42% and there is significant embedded growth potential… with market rents 28% above in‑place rents today.”
“BREIT has paid out 100% of repurchase requests for six consecutive months… repurchase requests have declined 87% since the January 2023 peak and BREIT raised ~$900M in Q2 2024.”

Q&A Highlights

N/A (no Q4 2024 earnings call transcript was available in the reviewed document set).

Estimates Context

Wall Street consensus estimates (revenue, EPS, EBITDA) via S&P Global for Q4 2024 were unavailable for BREIT/BSTT; consequently, no estimate comparison can be provided.

Key Takeaways for Investors

Operating performance is resilient: preliminary FY 2024 same property NOI growth “more than 4%” underscores durable fundamentals across data centers, industrial, and rental housing .
GAAP loss is driven by structural non‑cash/financing items (D&A and interest) and hedging marks; focus on cash‑flow proxies (NOI) and asset‑level performance rather than GAAP EPS .
Data center exposure (QTS) offers multi‑year runway via a pre‑leased $22B+ development pipeline tied to AI demand; this is a key medium‑term growth vector .
Industrial embedded growth (42% re‑leasing spreads; market rents 28% above in‑place) should continue to support NOI growth as new supply normalizes .
Capital flows are improving (fully met repurchases, declining requests, and rising subscriptions in Q2), reducing liquidity overhang and supporting NAV stability .
Near‑term watch items: rate sensitivity in derivatives/financing costs and the pace of dispositions, which meaningfully impacted FY 2024 reconciliation .
With no formal guidance/consensus, narrative catalysts hinge on sector updates and deal execution (data centers/industrial assets) rather than quarter‑to‑quarter EPS prints .

References:

Blackstone Real Estate Income Trust, Inc. (BSTT)·Q4 2024 Earnings Summary