Article

Blackstone Real Estate Income Trust (Breit) achieved an 8.1% total return in 2025, its best performance in three years, largely due to investments in data centers. The fund's assets surpassed $54 billion, up from a 2% return in 2024 and a loss of 0.5% in 2023.

A key factor in this turnaround was Blackstone's acquisition of QTS, a major data center operator, which has seen increased value driven by demand from AI and tech sectors. In contrast to the end of 2022 and 2023, when investor redemptions forced Breit to limit withdrawals amid falling property values and rising interest rates, the fund has now met all redemption requests since early 2024.

This indicates a recovery in commercial real estate, despite the broader nontraded REIT sector averaging only 1.5% returns last year. Breit continues to outperform public REITs, which recorded a 2.3% total return.