Blackstone to Offload $1.8 Billion Senior Housing Portfolio After Steep Losses

Blackstone Inc. (NYSE: BX) is exiting one of its more troubled real estate bets, selling off a $1.8 billion portfolio of U.S. senior housing properties after the investment slumped amid a prolonged post-pandemic downturn in occupancy and valuations.

According to The Wall Street Journal, the divestment will result in losses exceeding $600 million, with certain properties trading at more than 70% below their purchase price. The portfolio includes roughly 9,000 senior housing units across about 90 properties nationwide. Blackstone had assembled the portfolio through its real estate funds during the 2010s, wagering on demographic trends and rising demand for assisted living and memory care facilities. But that thesis unraveled as the pandemic drove up costs and vacancy rates, while newer competitors offered lower-cost alternatives and higher-end amenities.

The firm is reportedly selling the properties through multiple transactions rather than a single bulk sale, seeking to limit further write-downs.“This is a disciplined repositioning of capital from a sector that hasn’t met our long-term return expectations,” a person familiar with the matter said.

Senior housing was among the hardest-hit corners of commercial real estate during Covid-19. Operators faced surging labor costs, depressed occupancy, and declining investor interest even as healthcare real estate investment trusts (REITs) began to recover. Analysts say the move underscores the limits of Blackstone’s once-dominant real estate strategy, which has historically delivered strong returns through cycles in multifamily, logistics, and hospitality. The firm has more recently pivoted toward data centers, logistics, and student housing, sectors that continue to show resilience amid secular demand growth.

Despite the write-down, Blackstone’s overall real estate business remains its largest segment, accounting for nearly 40% of its $1.21 trillion in total assets under management as of mid-2025. The company has reported $887 billion in fee-earning assets and maintains offices across 25 global markets.

While the senior housing sale will not materially alter Blackstone’s earnings profile, analysts noted that it adds to signs of cooling within the firm’s U.S. property holdings. The company’s revenue over the trailing twelve months stands at $11.38 billion, with a net margin of 23.8% and a debt-to-equity ratio of 1.54, according to public filings. Shares of Blackstone fell 1.2% in early trading Thursday, giving the company a market capitalization of approximately $112 billion.

About Blackstone Inc.

Blackstone Inc. (NYSE: BX) is the world’s largest alternative asset manager, with $1.21 trillion in assets under management as of June 30, 2025. Founded in 1985 and headquartered in New York, Blackstone invests across private equity, real estate, credit and insurance, and multi-asset solutions, with the goal of delivering superior long-term returns for institutional and individual investors. The firm operates in 25 offices worldwide and manages capital on behalf of pension funds, sovereign wealth funds, and private clients.