Fake Dividends? Finding The Truth About Blackstone's BREIT With Phil Bak (Ticker: BX)
Chit Chat Stocks
Exploring Interconnected Management Fees and Liquidity Challenges
Exploring the implications of management fees on a public company's stock, including incentives, liquidity challenges, and the possibility of a liquidity death spiral that could unsettle investors.
On this episode of the Chit Chat Stocks Podcast, Ryan and Brett talk with Phil Bak on all things Real Estate funds and Blackstone's BREIT story. We discuss:
(00:00) Introduction and Background
(02:32) Misconceptions about REITs
(04:29) Armada Investors: A Quantitative Approach
(07:46) HAUS: Pure Play Exposure to Residential Real Estate
(12:10) REAL: A Multi-Factor Approach to Real Estate Investing
(15:27) The BREIT Controversy
(30:53) The Issues with BREIT: Elevated NAV, Redemptions, and Fake Dividends
(37:15) Strategies to Address the BREIT Situation: Selling Properties and Raising New Money
(40:25) The Material Impact of BREIT on Blackstone
(45:10) The Logic of the BREIT Structure: Promising Liquidity in Illiquid Assets
(47:42) The Importance of Understanding the Risks of Private Market Real Estate
FIND MORE OF PHIL's WORK
https://www.armadainvestors.com/
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Disclosure: Chit Chat Stocks hosts and guests are not financial advisors, and nothing they say on this show is formal advice or a recommendation.
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