Fun with REIT valuations

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TWO DIRECTIONS: Great moments in financial journalism! The New York Times finally gets around to wondering how it can be that the price of Blackstone’s $114 billion private REIT, whose value is determined solely by Blackstone’s appraisers, has spent the last five years going up while the prices of almost all publicly traded REITs, whose value are determined by the actual marketplace, have spent the same period going down. Such a mystery! “Wall Street is split on Blackstone’s approach,” the Times says. Hard-hitting!

Meanwhile, over at Business Insider, Bethany McLean takes a more, er, jaundiced view of what Blackstone is up to.