Blackstone Real Estate Fund Files Q2 2025 10-Q

TL;DR

**BREC 10-Q OUT: Real estate loan details for Q2 2025 filed. Name change noted.**

AI Summary

Blackstone Private Real Estate Credit & Income Fund filed its 10-Q for the period ending June 30, 2025. The filing details various real estate loan positions and segments, including specific properties like 'The Journal Phase 1' and '1100 Peachtree'. The fund, formerly known as Blackstone Private Real Estate Credit Fund, changed its name on December 23, 2024.

Why It Matters

This filing provides investors with an update on the fund's real estate loan portfolio and its performance as of mid-2025.

Risk Assessment

Risk Level: medium — Real estate credit funds carry inherent risks related to property values, interest rates, and borrower defaults.

Key Players & Entities

• Blackstone Private Real Estate Credit & Income Fund (company) — Filer
• Blackstone Private Real Estate Credit Fund (company) — Former company name
• 2025-06-30 (date) — Reporting period end date
• 2024-12-23 (date) — Date of name change
• The Journal Phase 1 (real_estate_asset) — Property name
• 1100 Peachtree (real_estate_asset) — Property name

FAQ

Key Financial Figures

• $0.01 — beneficial interest ("Common Shares"), $0.01 par value per share, outstanding as of

Filing Documents

• brec-20250630.htm (10-Q) — 1351KB
• ex106-formoffundoffundsagr.htm (EX-10.6) — 50KB
• brec-06302025xexx311.htm (EX-31.1) — 10KB
• brec-06302025xexx312.htm (EX-31.2) — 10KB
• brec-06302025xexx321.htm (EX-32.1) — 5KB
• brec-06302025xexx322.htm (EX-32.2) — 5KB
• brec-20250630_g1.jpg (GRAPHIC) — 32KB
• brec-20250630_g2.jpg (GRAPHIC) — 42KB
• 0002049733-25-000026.txt ( ) — 7474KB
• brec-20250630.xsd (EX-101.SCH) — 41KB
• brec-20250630_cal.xml (EX-101.CAL) — 55KB
• brec-20250630_def.xml (EX-101.DEF) — 200KB
• brec-20250630_lab.xml (EX-101.LAB) — 512KB
• brec-20250630_pre.xml (EX-101.PRE) — 382KB
• brec-20250630_htm.xml (XML) — 1190KB

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 12 Item 2. Management ' s Discussion and Analysis of Financial Condition and Results of Operations 29 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 40 Item 1A.

Risk Factors

Risk Factors 40 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 40 Item 3. Defaults u pon Senior Securities 40 Item 4. Mine Safety Disclosures 40 Item 5. Other Information 40 Item 6. Exhibits 41

Signatures

Signatures 42 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This report contains forward-looking statements that involve substantial risks and uncertainties. Such statements involve known and unknown risks, uncertainties and other factors and undue reliance should not be placed thereon. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about Blackstone Private Real Estate Credit and Income Fund (together, with its consolidated subsidiaries, the "Company," "BREC," "we," "us" or "our"), our current and prospective portfolio investments, our industry, our beliefs and opinions, and our assumptions. Words such as "anticipates" "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including without limitation: our future operating results; our business prospects and the performance of properties securing or underlying our investments; changes in political, economic or real estate market conditions, the inflation and interest rate environment or conditions affecting the financial and capital markets; our ability to raise sufficient capital to execute our investment strategy; our contractual arrangements and relationships with third parties; our current and expected financings and investments; the adequacy of our cash resources, financing sources and working capital; the timing and amount of cash flows, distributions and di

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. Blackstone Private Real Estate Credit and Income Fund Consolidated Statement of Assets and Liabilities (in thousands, except share and per share amounts) (Unaudited) June 30, 2025 ASSETS Investments at fair value Non-controlled/non-affiliated investments (cost basis of $ 497,591 ) $ 500,086 Total investments at fair value (cost basis of $ 497,591 ) 500,086 Cash and cash equivalents 6,028 Interest receivable from non-controlled/non-affiliated investments 2,223 Other assets 1,730 Total assets $ 510,067 LIABILITIES Secured debt, net $ 273,410 Payables for investments purchased 11,004 Derivative liabilities at fair value 1,366 Distribution payable 1,195 Due to affiliates 909 Accrued expenses and other liabilities 362 Total liabilities 288,246 Commitments and contingencies (Note 10) NET ASSETS Common Shares, $ 0.01 par value ( 8,795,536 shares issued and outstanding) 88 Additional paid-in capital 220,415 Distributable earnings 1,318 Total net assets 221,821 Total liabilities and net assets $ 510,067 NET ASSET VALUE PER SHARE June 30, 2025 Net assets $ 221,821 Common Shares outstanding ($ 0.01 par value, unlimited shares authorized) 8,795,536 Net asset value per share $ 25.22 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents Blackstone Private Real Estate Credit and Income Fund Consolidated Statement of Operations (in thousands) (Unaudited) For the period from May 1, 2025 (Commencement of operations) to June 30, 2025 Investment income: From non-controlled/non-affiliated investments: Interest income $ 2,152 Total investment income 2,152 Expenses: Interest expense 508 Other general & administrative 2,063 Organizational costs 1,615 Amortization of continuous offering costs 105 Total expenses 4,291 Expense Support ( 3,715 ) Net expenses 576 Net investment income 1,576 Realized and unrealized gain (loss): Unrealized gain (los

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) (in thousands, except share amounts, per share data, percentages and as otherwise noted) 1. ORGANIZATION Blackstone Private Real Estate Credit and Income Fund ("BREC" or the "Company") is a Delaware statutory trust formed on October 14, 2024. The Company was formed to originate, acquire, finance and manage a portfolio consisting of a broad range of real estate-related investments in or relating to private and public debt, equity or other interests on a global basis, with a primary focus in the U.S. The Company may invest in, or originate, real estate-related debt and equity securities, including senior loans, mezzanine loans, subordinated debt, mortgage-backed securities ("MBS"), B-Notes, and collateralized loan obligations ("CLOs"). The Company is an externally managed, non-diversified, closed-end management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company is externally managed by Blackstone Real Estate Special Situations Advisors L.L.C. (the "Adviser"), a subsidiary of Blackstone Inc. ("Blackstone"), and intends to elect to be treated for U.S. federal income tax purposes, and to qualify annually thereafter, as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The three months ended June 30, 2025 represent the period from May 1, 2025 (commencement of operations) to June 30, 2025. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States ("GAAP") and pursuant to the requirements for reporting on Form 10-Q and Article 6 and 10 of Regulation S-X. Accordingly, certain disclosures accompanying the annual consolidated financial state

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (Unaudited) (in thousands, except share amounts, per share data, percentages and as otherwise noted) Investments Investment transactions are recorded on a trade date basis. Realized gains or losses are measured as the difference between the net proceeds received (excluding prepayment fees, if any) and the amortized cost basis of the investment using the specific identification method without regard to unrealized gains or losses previously recognized. Such gains and losses include investments charged-off during the period, net of recoveries, and are recorded within net realized gain (loss) on the consolidated statement of operations. The net change in unrealized gains or losses primarily reflects the change in investment values, including the reversal of previously recorded unrealized gains or losses with respect to investments realized during the period, and is recorded within net unrealized gain (loss) on the consolidated statement of operations. Valuation of Investments The Company is required to report its investments at fair value, including those for which current market values are not readily available. In accordance with Rule 2a-5 under the 1940 Act, the Board designated the Adviser as the "Valuation Designee" to perform fair value determinations related to the Company's investments, subject to the Board's oversight. Any investments and other assets for which current market quotations are not readily available are valued at fair value as determined in good faith by the Valuation Designee pursuant to the Company's valuation procedures established by, and under the general supervision and responsibility of, the Board. The Company values its investments in accordance with FASB ASC Topic 820, Fair Value Measurement ("ASC 820"), which defines fair value as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the applicable m

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