Entering text into the input field will update the search result below

Blackstone: A $1 Trillion 'Strong Buy' Private Equity Juggernaut

May 01, 2022 7:00 AM ETBlackstone Inc. (BX)APO, ARES, BAM, CG, KKR, OWL, VNQ, BN:CA118 Comments


  • I’m not against buying private real estate, as I have owned my fair share, close to $100 million (held in various partnerships) prior to 2010.
  • While publicly listed REITs provide better liquidity and are ready-made for the average investor, private real estate can oftentimes be less volatile.
  • Blackstone has a firm grasp of creating shareholder value and buying shares at the current level is what “intelligent investing” is all about.
  • I do much more than just articles at iREIT on Alpha: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

London City skyscrapers overlooking homes along River Thames

CHUNYIP WONG/E+ via Getty Images

According to the Stanger Report, non-traded NAV (net asset value) REIT returns outpaced those of publicly listed REITs with a cumulative total return of 70.1% over the last 60 months (vs publicly listed REITs that returned 58.5%). Kevin Gannon, chairman and chief executive officer of Stanger,

Discounts for Veterans and Retirees

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREIT, Preferreds, BDCs, MLPs, ETFs, Banks, and we recently added Prop Tech SPACs to the lineup. Direct message me about a great discount if you are a veteran or retiree.

A person in a suit Description automatically generated with medium confidence

Nothing to lose with our FREE 2-week trial.

This article was written by

Brad Thomas profile picture

Brad Thomas is the CEO of Wide Moat Research ("WMR"), a subscription-based publisher of financial information, serving over 175,000 investors around the world. WMR has a team of experienced multi-disciplined analysts covering all dividend categories, including REITs, MLPs, BDCs, and traditional C-Corps.

The WMR brands include: (1) iREIT on Alpha (Seeking Alpha), and (2) The Dividend Kings (Seeking Alpha), and (3) Wide Moat Research. He is also the editor of The Forbes Real Estate Investor

Thomas has also been featured in Barron's, Forbes Magazine, Kiplinger’s, US News & World Report, Money, NPR, Institutional Investor, GlobeStreet, CNN, Newsmax, and Fox. 

He is the #1 contributing analyst on Seeking Alpha in 2014, 2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022 and 2023 (based on page views) and has over 111,000 followers (on Seeking Alpha). Thomas is also the author of The Intelligent REIT Investor Guide (Wiley) and is writing a new book, REITs For Dummies (Wiley/Amazon).  

Thomas received a Bachelor of Science degree in Business/Economics from Presbyterian College, and he is married with 5 wonderful kids. He has over 30 years of real estate investing experience and is one of the most prolific writers on Seeking Alpha. To learn more about Brad visit HERE.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of BX, BXMT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Author's note: Brad Thomas is a Wall Street writer, which means he's not always right with his predictions or recommendations. Since that also applies to his grammar, please excuse any typos you may find. Also, this article is free: written and distributed only to assist in research while providing a forum for second-level thinking.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

Comments (118)

Brad Thomas profile picture
Good morning and thanks for reading! I'm traveling back from a conference in San Diego today and will have limited access to my computer.
Please read my weekend update:

@Brad Thomas Sounds good! im dealing with my capitalist woodstock hangover anyway!
@Brad Thomas Good article. I’ve been long BX for three years. My concern is what happens if the real estate market tanks?
Brad Thomas profile picture
@kroyals I see no signs of that happening.... banks were big reason for cause of Great Recession...they were flushed out...REITs were over levered prior to GR, they're much safer now....rate increases = rising rents = rising property values. That's not to say that certain sub sectors aren't frothy...I see lots of construction in south Florida but there's significant demand accelerated by COVID-19. I believe there's a modest (10%) chance of a garden style recession in 23....Thanks for reading
BULRUN100 profile picture
In today at $94.07, just to low to resist. Brad to you see a future fall and what's your thinking about why it's down from your buy zone. Do you see a real estate issue or is real estate still in your mind a future safe haven?
BULRUN100 profile picture
Brad thx for the article do you have any concerns with BX real estate portfolio if we go into a deep recession are they over exposed? Thx
Bucknfl profile picture
Well that was a quick dip, 95 to 120 in under a month. I was hoping to buy more but BX went parabolic.
Bucknfl profile picture
BX back to 108, is the dip over?
Currently the stock is trading double the value of what it was on Sep 2020. In less than 2 years have they built a business that can generate twice the cash flow to support the value ?
Bucknfl profile picture
Started to buy under a $100
Xav Welsh profile picture
@Bucknfl this was <$60 just prior to the pandemic. Now still over 50% higher in the present environment.
Greg D. Brown profile picture
What is Blackstone's exposure to commercial office? I think that's where the pain is yet to be felt as those leases come due and businesses need less space now with some percent of workforce working from home.
Can't decide between BLK and BX. BLK looks more attractive based on P&E.
PauloCostaSilva profile picture
@Saul_Goodman Ahahahah, i have been having the same doubt ... and no, I cannot buy both as I have an extensive list of stocks to buy now and I need to diversify :)
But i look at $BLK with tender eyes though ahahahah
Most markets and stocks have given some up except fossil energy AG stocks and most mineral stocks.

Private Equity and the massive BX have yet to massively reprice downward---when that occurs, maybe then the mkts are buyable, no?

When did BX last eliminate or cut their dividend? 2009?
@CJlove4all you can't compare bx to 2008/9. Its a vastly different company with loads of cash. If they were the same as 2009 they wouldn't be trading at this level.
@DomL so said FB/Netflix/ Paypal, Russel 2000, , etc....
Nice article. However, this is definitely a bear market. Best thing you can do is collect dividends for awhile, and it might be quite awhile. I regret buying BX in the 120s and 130s but at least the dividend is attractive.
Lorenzo Melendez profile picture
No doubt BX is a fine company. But is it a buy versus APO at twice the P/E??
Can BX continue to grow earnings at twice the percentage rate of APO?
Any thoughts appreciated.
Stefan Redlich profile picture
I want the real estate market to collapse, then Blackstone will be worth buying. They have been spending tens of billions at these real estate valuations and that needs to stop. The bubble has to explode now and I think it will
xrmfgk profile picture
@Stefan Redlich Agree Terrible timing to buy.
@Stefan Redlich who says it has to collapse, what happens if it just goes sideways for years ?
Liquidors profile picture
They aren't committed to maintaining any dividend as it varies quarter by quarter. I wouldn't press on that current yield because there'd be no room to be surprised if the amount is half of that next quarter. Same with ARES.
ASB Capital profile picture
Any concern that higher interest rates impair the ability of the buyout guys to make money going forward? Just thinking things through...
WYCO Researcher profile picture
Brad, sorry I strongly disagree.
I will not buy or trade Blackstone as long as Schwarzman has ANYTHING to do with the company. I never buy companies headed by an egomaniac. I can't stand him as person or as businessman.

Example, Schwarzman demanded that his name be put on the New York Public Library on 5th Ave. Companies/foundations/individuals have given huge amounts to that library for decades. A few got names on rooms etc but NOT on the entire building. After he got his name on the building my family stopped giving and so did many others. The reality is his donation actually will cost the Library because of lower donations over a number of years. The combination of these lost donations will be greater than his donation.
I have dealt with BX as a business partner in my career and will say they are ruthless sharks (borderline bastards). Just the kind of company I want to own to make money.
Brad Thomas profile picture
@fscott0863 The golden rule: He who has the gold makes all the rules
@fscott0863 unfortunately in this game thats how you have to play. Steve Jobs was a shark too. Literally offering companies 30% of they were worth and playing odd psychological games to get them to fold
handbell editor profile picture
BX is my largest holding for over 2 years and is still almost a double today. I also like and hold
ACRE-AGNC-ARCC-ECC-EPD-ET-KMI-MAIN-MPLX-ORCC-MAIN- and quite a few more. Most of these purchases were influenced by the writers on SA. I have a lot of good dividend stocks and quite a few growth stocks like ADBE-AMD-AMZN-BMRN-BWA-CMI-DUK-EVT-FEN-GLW-IFNNY-IRM-KEYS-LUCID-LMT-LOW-MCD-MCHP-MSFT-MU-NOK-NVDA-NXPI-OKE-ON-PDI-PDO-PG-RTX-TXT-UBER=UFT-WMT-XOM and a few others. I am well into retirement. All the best to everyone. If you have time to study the stock market and make good decisions, it will treat you well.
Brad Thomas profile picture
@handbell editor Thank you for reading and commenting and also for the opportunity to be of service. Best of luck
BX = a great company.
CashFlowHunter profile picture
How wide is your buy zone? I like BX and have owned it and traded it over the past 7 years. If you like it at $101, as you follow more of a fundamental approach but you cannot ignore the backdrop for assets right now. you may really like it at $91.42 and $77.65. It’s 50 and 61.8% Fibonacci re tracements from the Covid low to 2021 highs .
Brad Thomas profile picture
@CashFlowHunter I cannot give the management enough credit for the success of the business model. All the best
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.