Blackstone stock falls after limiting real estate fund withdrawals

Yahoo Finance Live checks out shares of the Blackstone Group after announcing limits to withdrawals from real estate funds.

Video Transcript



SEANA SMITH: It's time for our "Triple Play," three stocks that we're watching in the final 30 minutes of trading. Blackstone, AMC, and Costco are our picks today. So let's kick it off with Blackstone. My pick is a top trending ticker on Yahoo Finance. The company is limiting withdrawals from its $69 billion real estate fund. This follows a big jump in redemption requests.

Now, in a letter posted to its website, Blackstone wrote that redemption requests were above the 5% quarterly limit that it set for the fund. That sent shares down by more than 10% in earlier trading, the biggest drop that we've seen for Blackstone since March.

Another big headline that we're keeping a close track on for Blackstone today, the Wall Street Journal reporting that the company has agreed to sell its 49.9% stake in MGM Grand Las Vegas and also Mandalay Bay. They're selling that to VICI Properties. That transaction values the two hotels at 5 and 1/2 billion.

Jared, that's expected to close in the first quarter of next year. But the big driver for the stock today and why we saw a more than 10% drop earlier today was the fact that they were limiting withdrawals from their large real estate fund.

JARED BLIKRE: Close the gates. That's what they're doing. And that's what happens when you need a little bit more liquidity for yourself, and not necessarily for investors. But that's all right, nothing filed there.

Let's take a look at the YFi Interactive. Just going to plot quickly. This is a two-year chart you can see firmly in a downtrend here. Pretty well defined, and that's about all I got to say. Lots of charts in this market environment happen to look like this. So, interesting to see what private equity is up to, a little bit of a veil there.