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The pandemic has criticized some of the major types of properties, but the changes Blackstone Group Inc. has made to its real estate portfolio over time have helped the investment firm weather the fallout.
In the years leading up to the arrival of Covid-19, Blackstone shifted its mix of properties based on changes taking place in the economy and technology. While the company’s investors were not preparing for a pandemic, their measures to gradually reduce exposure to certain real estate categories have since served them well.
Retail and accommodation, for example, were the two types of commercial properties hardest hit during the pandemic as travel declined and consumers migrated to online shopping with many stores closed or limiting. capacity due to Covid-19.
In a global real estate portfolio that Blackstone values at $ 341 billion, retail real estate assets represent just 5% of stock value, up from 19% in 2015, according to the company. Changes in the value of equity are the result of both firm investment decisions and changes in market valuations.
Hotels represent 7% of equity value, up from 23% in 2015. Accommodation accounted for almost half of portfolio equity value in 2010, when Blackstone controlled Hilton Worldwide Holdings Inc. and owned many properties. accommodation.
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