Blackstone Appoints Katie Keenan to Lead Real Estate Income Trust

Leadership Transition at Blackstone Real Estate Income Trust

Blackstone (NYSE: BX), a global leader in real estate investing, announced on September 19, 2025, significant leadership changes within its Real Estate business. The firm appointed Katie Keenan as the new Chief Executive Officer and a Director of Blackstone Real Estate Income Trust, Inc. (BREIT), as well as Global Head of the Core+ Real Estate business. This appointment follows the tragic passing of Wesley M. LePatner, who previously held both roles, on July 28, 2025.

Key Appointments and Strategic Continuity

Ms. Keenan, a seasoned Blackstone executive since 2012, brings extensive experience to her new role. She previously served as Global Co-Chief Investment Officer of Blackstone Real Estate Debt Strategies (BREDS) and Chief Executive Officer of Blackstone Mortgage Trust, Inc. (BXMT). Her tenure saw the BREDS platform grow to $77 billion. In a related move, Tim Johnson has been appointed Chief Executive Officer of BXMT, succeeding Ms. Keenan. Mr. Johnson, who has been with Blackstone since 2011 and chairs BXMT's Board, will continue as Global Head of BREDS.

Further leadership updates include Zaneta Koplewicz being named Co-President and Director of BREIT alongside veteran A.J. Agarwal, while interim CEO Rob Harper will resume his role as BREIT Head of Asset Management. Most leadership changes are effective November 10, 2025, with Ms. Keenan's appointment as Global Head of Core+ Real Estate taking immediate effect. This swift succession strategy underscores Blackstone's commitment to maintaining operational continuity and investor confidence.

Market Positioning and Performance Analysis

Ms. Keenan's strategy for BREIT aligns with the fund's established focus on "Core+" real estate. This approach emphasizes lower-risk investment projects and a low-leverage strategy, contrasting with prior value-add approaches. Approximately 90% of BREIT's $53 billion portfolio is concentrated in sectors benefiting from long-term secular megatrends, particularly data centers and industrial logistics, which have shown resilience amidst interest rate volatility. Other key areas include logistics and stabilized real estate assets.

Historically, BREIT has delivered a strong 9.2% annualized net return on Class I shares since its inception over 8.5 years ago, outperforming the public REIT index by over 60% on a cumulative basis. However, the fund experienced a challenging period with a 1.7% annualized return over the past three years due to rising interest rates and declining real estate values. This led to redemption challenges in 2022-2023, where Blackstone temporarily halted redemptions and imposed caps. By early 2024, redemption requests stabilized, and BREIT resumed full fulfillment of withdrawal requests, signaling improved liquidity management. The fund has since shown positive momentum, recording eight consecutive months of positive performance and raising $1.1 billion in Q2, marking its best fundraising quarter in over two years.

Expert Commentary and Future Outlook

Ms. Keenan expressed optimism regarding BREIT's positioning:

"Thanks to the dedication of Wesley and many others, BREIT represents some of Blackstone's finest work. Its strong performance is driven by a portfolio that is ~90% concentrated in sectors that are benefitting from long-term, secular megatrends, particularly data centers. BREIT is incredibly well-positioned and I am looking forward to working with the team to capitalize on the ongoing real estate recovery, with new supply falling sharply, the cost of debt capital coming down, and transaction activity picking up."

Nadeem Meghji and Kathleen McCarthy, Global Co-Heads of Blackstone Real Estate, highlighted the team's resilience and talent:

"The resilience demonstrated by our team in recent weeks has been nothing short of extraordinary. We are fortunate to have a deep bench of talented colleagues with a relentless focus on delivering for our investors. Katie and Tim both have invaluable leadership and investing experience that we believe will continue to drive strong performance across both businesses."

Analysts credit internal succession for preserving investor confidence during transitions. The appointment of Ms. Keenan coincides with a broader recovery in the real estate market, with forecasts for REIT earnings growth in 2025. Blackstone executives are optimistic about a market turnaround, citing limited supply and reopened debt markets. Investors will closely monitor Ms. Keenan's execution of BREIT's core-plus strategy, focusing on continued market recovery, interest rate trends, and the fund's ability to sustain positive performance and manage liquidity effectively in the evolving real estate landscape.