Blackstone’s BREIT Gains 2%, Failing to Let Managers Reap Profit

One of the world’s most-watched real estate funds is presenting a reality check: The property market rebound that investors have been betting on is slow-going.

Blackstone Inc.’s major fund for wealthy investors gained 1.95% in 2024, the second year the Blackstone Real Estate Income Trust failed to deliver returns that would allow its managers to reap profits. The firm can only share in carried interest if BREIT delivers at least 5% in a year.

The latest lackluster returns of its main share class are a reminder that the real estate market hasn’t fully recovered from its most challenging stretch ...