Does Blackstone's US Senior Housing Sale Signal a Shift in Real Estate Strategy for BX?

• In early November 2025, Blackstone began offloading its U.S. senior housing properties valued at US$1.8 billion, encompassing around 9,000 units and taking reported losses exceeding US$600 million in the process.
• This sizeable divestment marks a clear shift in Blackstone's real estate focus as it seeks to mitigate setbacks in the senior housing sector.
• We'll explore how Blackstone’s significant exit from senior housing affects the company's investment narrative and its broader long-term positioning.

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Blackstone Investment Narrative Recap

To invest in Blackstone, you generally need to believe in its ability to sustain strong fee-related revenue by deploying significant inflows and capital reserves across private equity, credit, and real estate. The recent US$1.8 billion senior housing divestment signals a shift in real estate but does not have a material effect on the main short-term catalyst, deployment of US$177 billion in available capital, and the key risk, which remains economic or geopolitical shocks that could stall realization activity.

In the context of recent events, Blackstone’s active participation in M&A, including recent discussions around tech firm OneStream, underscores its ongoing efforts to find new growth avenues. Compared to the senior housing exit, these pursuits align more closely with the company’s focus on seizing opportunities when assets are potentially undervalued, a catalyst fueled by its substantial fundraising power.

But on the other hand, investors should be alert to the volatility that can quickly arise if deal-making slows or asset values...

Read the full narrative on Blackstone (it's free!)

Blackstone’s narrative projects $21.5 billion in revenue and $10.5 billion in earnings by 2028. This requires 16.7% yearly revenue growth and a $7.6 billion earnings increase from current earnings of $2.9 billion.

Uncover how Blackstone's forecasts yield a $179.78 fair value, a 25% upside to its current price.

Exploring Other Perspectives

Some analysts have forecast that Blackstone's revenues could reach US$21.5 billion by 2028, based on stronger fundraising and aggressive capital deployment. If you believe the bulls, they see the company’s scale and innovation fueling above-market growth, though risks such as real estate markdowns might weigh more heavily than many expect. It's worth exploring these contrasting viewpoints, especially as recent news could cause even the highest analyst narratives to shift.

Explore 7 other fair value estimates on Blackstone - why the stock might be worth as much as 34% more than the current price!

Build Your Own Blackstone Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Blackstone research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Blackstone research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Blackstone's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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