BREIT Tax Highlights

BREIT delivers compelling after-tax distributions, supported by a high return of capital (“ROC”) percentage that can reduce investors’ effective tax rates.

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BREIT annualized distribution rate (Class I) ^{[ 2 ]}

4.7%

Distributions characterized as return of capital (“ROC”) in 2025 ^{[ 7 ] [ 8 ]}

100%

BREIT tax-equivalent distribution rate ^{[ 6 ]}

7.5%

Compelling Distributions with Potential Tax Benefits

BREIT has delivered strong monthly distributions with potential tax benefits since inception.^{[ 1 ]} In 2025, 100% of BREIT’s distribution was treated as return of capital (“ROC”), resulting in zero tax dilution and bringing BREIT’s 4.7% annualized distribution rate for Class I shares to 7.5% on a tax-equivalent basis.^{[ 2 ] [ 3 ][ 4 ][ 5 ][ 6 ]}

Tax Features

100% of BREIT’s distribution in 2025 was treated as return of capital (“ROC”) primarily due to depreciation^{[ 7 ][ 8 ]}
ROC distributions generally result in minimal tax dilution through deferral, reducing ordinary income tax^{[ 5 ][ 7 ]}
If all BREIT distributions were taxable as ordinary income, investors would need to find an investment that generates a pre-tax distribution rate of 7.5% to match the 4.7% after-tax distribution rate generated by BREIT Class I shares^{[ 3 ][ 6 ]}

BREIT’s December 2025 Annualized Distribution Rate^{[ 2 ][ 3 ][ 6 ]}
Based on 100% ROC^{[ 7 ][ 8 ]}

breit's_december_2025_annualized_distribution_rate: pre-tax distribution rate (class i), 4.7%; after-tax distribution rate (class i), 4.7%; tax-equivalent distribution rate, 7.5%; no tax dilution in 2025

Note: The above assumes that the investment in BREIT shares is not sold or redeemed. The tax-equivalent distribution rate would be up to 1.5% lower after taking into account deferred capital gains tax that would be payable upon redemption. See notes.^{[ 6 ][ 7 ][ 8 ]}

Additional Impact From State Level Taxes

Key Takeaway: Particularly for investors located in high tax states, like California and New York, BREIT distributions can be even more compelling, at around 9-10% on a tax-equivalent basis.

State Tax Equivalent Distribution Rate

State Tax Equivalent Distribution Rate
State	Combined Tax Equivalent Distribution Rate^{[ 10 ]}
New York	9.1%
New York City Resident	9.8%
California	9.5%
Hawaii	9.1%
Washington D.C.	9.1%
New Jersey	9.1%
Oregon	8.9%
Minnesota	8.9%
Massachusetts	8.8%
Vermont	8.7%
Wisconsin	8.6%

State Tax Equivalent Distribution Rate

State

New York

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	9.1%

New York City Resident

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	9.8%

California

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	9.5%

Hawaii

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	9.1%

Washington D.C.

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	9.1%

New Jersey

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	9.1%

Oregon

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	8.9%

Minnesota

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	8.9%

Massachusetts

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	8.8%

Vermont

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	8.7%

Wisconsin

Combined Tax Equivalent Distribution Rate^{[ 10 ]}	8.6%

Note: States shown represent the top ten states with the highest state tax rate. Assumes that an investor is subject to the top marginal federal and state tax rates.

Understanding REIT Tax Treatment^{[ 3 ]}

Key Takeaway: A high ROC percentage combined with favorable REIT tax rates can meaningfully decrease, or even eliminate, a REIT investor’s effective federal tax rate on distributions.^{[ 7 ][ 8 ][ 11 ]}

Real Estate Investment Trust (REIT) distributions are taxed at different rates depending on whether they are characterized as ordinary income, capital gains or return of capital

A notable advantage of REITs is the ability to characterize a portion of distributions that would otherwise be treated as ordinary income as ROC due to real estate-related factors such as depreciation

ROC distributions are tax deferred until redemption, at which time they give rise to capital gains

Inherited REIT shares are generally eligible for a tax-free step-up in basis to the prevailing fair market value at the time of transfer^{[ 12 ]}

REIT investors benefit from a 20% tax rate reduction to individual tax rates on the ordinary income portion of distributions^{[ 11 ]}

BREIT Tax Highlights

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Important Disclosure Information

This page and its contents are not to be viewed by or distributed to financial advisors or investors in the states of New Jersey, Ohio or Washington.

All information is as of December 31, 2025, unless otherwise noted. There can be no assurance that any Blackstone fund or investment will be able to implement its investment strategy, achieve its objectives, or avoid substantial losses. Financial data is estimated and unaudited. This tax information is provided for informational purposes only, is subject to material change, and should not be relied upon as a guarantee or prediction of tax effects. This material also does not constitute tax advice to, and should not be relied upon by, potential investors, who should consult their own tax advisors regarding the matters discussed herein and the tax consequences of an investment. A return of capital in this context is intended to mean a current income distribution which is not a taxable dividend (as defined in IRC Section 316) and which reduces or exceeds the adjusted basis of the shareholder’s stock (i.e., a Section 301(c)(2) or Section 302(c)(3) distribution). No inference should be made about the source of the current income distribution (including the taxable and non taxable components). This material contains references to our net asset value (“NAV”) and NAV based calculations, which involve significant professional judgment. Our NAV is generally equal to the fair value of our assets less outstanding liabilities, calculated in accordance with our valuation guidelines. The calculated value of our assets and liabilities may differ from our actual realizable value or future value which would affect the NAV as well as any returns derived from that NAV, and ultimately the value of your investment. As return information is calculated based on NAV, return information presented will be impacted should the assumptions on which NAV was determined prove to be incorrect. NAV is not a measure used under generally accepted accounting principles (“GAAP”) and will likely differ from the GAAP value of our equity reflected in our financial statements. As of December 31, 2025, our total equity under GAAP, excluding non-controlling third-party JV interests, was $22.8 billion and our NAV was $54.3 billion. As of December 31, 2025, our NAV per share was $14.12, $14.06, $13.88, $13.85, $13.79, $13.69 and $14.13 for Class S, Class S-2, Class T, Class T-2, Class D, Class D-2 and Class I shares, respectively, and GAAP equity per share/unit was $5.94. GAAP equity accounts for net loss as calculated under GAAP, and we have incurred $3.5 billion in net losses, excluding net losses attributable to non-controlling interests in third-party JV interests, for the year ended December 31, 2025. Our net loss as calculated under GAAP and a reconciliation of our GAAP equity, excluding non-controlling third-party JV interests, to our NAV are provided in our annual and interim financial statements. Our inception to date cash flows from operating activities, along with inception to date net gains from investment realizations, have funded 100% of our distributions through December 31, 2025. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Distributions” in BREIT’s Annual Report on Form 10-K for more information. For further information, please refer to “Net Asset Value Calculation and Valuation Guidelines” in BREIT’s prospectus, which describes our valuation process and the independent third parties who assist us.