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Breit Soars: Data Centers Fuel Real Estate Rebound
15 Jan
Summary
- Breit achieved an 8.1% total return in 2025, its best in three years.
- Data center investments, particularly QTS acquisition, boosted returns.
- The fund met all investor redemption requests since early 2024.
Blackstone Real Estate Income Trust (Breit) achieved an impressive 8.1% total return in 2025, representing its most robust performance in three years. This recovery is primarily attributed to substantial investments in data centers, a sector experiencing surging demand from artificial intelligence and technology firms. The acquisition of QTS, a major data center operator, significantly contributed to Breit's financial gains.
This notable performance contrasts sharply with late 2022 and 2023, when Breit faced heavy investor redemptions and had to limit withdrawals due to falling property values and rising interest rates. However, since early 2024, the fund has successfully met all investor redemption requests. This turnaround, coupled with its strong 2025 results, indicates a broader recovery trend for commercial real estate.
While the broader nontraded REIT industry averaged a much weaker 1.5% return through the third quarter of 2025, Breit's strategic focus on data centers, which comprised 21% of its holdings, proved highly beneficial. This success story also positions Breit favorably against public REITs, which saw a 2.3% return, though still trailing the S&P 500's 17.9%.
