May 28, 2026
BXDC pairs public-market liquidity and lower stated advisory fees with exposure to one of real estate’s most closely watched sectors
Blackstone Inc., the market leader in alternative investments, has put a new and innovative product into the marketplace, Blackstone Digital Infrastructure Trust (“BXDC”). The $1.75 billion blind pool REIT is publicly listed on the NYSE and focused exclusively on net leased data centers to hyper-scalers, probably the hottest asset class in real estate today.
The fund is externally managed by Blackstone with a favorable base fee structure (1.0% of market capitalization up to $25 billion, 0.9% of market capitalization from $25 billion to $50 billion, 0.8% of market capitalization from $50 billion to $75 billion and 0.7% of market capitalization over $75 billion). The Incentive Fee structure contemplates a quarterly calculation based upon market capitalization of the company and an annual fee of 0.25%, subordinated to an 8% annual return and a VWAP equal to the IPO price.
Assuming an 8% total return and a VWAP equal to the IPO price, BXDC’s total advisory fees would be approximately 1.25% of market capitalization, compared with approximately 2.25% under a common NAV REIT structure (base management fee of 1.25% on NAV plus an incentive fee equal to 12.5% of total return) with an 8% total return. Stanger estimates that the advisory fees on BXDC will be at least 44.4% lower than those of a typical NAV REIT along with a higher threshold of performance until it is payable (8.0% versus 5.0%). BXDC’s advisory fees are waived for the first six months following the IPO, further reducing the initial fee burden for investors.
“BXDC marks a new chapter in real estate capital formation,” said Kevin T. Gannon, Chairman & CEO of Stanger. “Blackstone is bringing together three powerful themes in one vehicle: demand for data center exposure, investor preference for liquidity, and pressure for lower fee structures. By offering a listed REIT focused on one of the most sought-after sectors in real estate with an advisory fee burden approximately 44% lower than a common NAV REIT structure, BXDC is likely to draw close attention from institutional and retail investors, advisors, and competing sponsors.”
Gannon added, “Other sponsors will be watching closely. If BXDC gains traction, it could accelerate the development of similar structures designed to compete more directly with NAV REITs on fees, liquidity, and market access.”
As of the May 28, 2026 market close, BXDC traded at $22.29 per share, up 11.5% from its $20.00 IPO price.
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About Robert A. Stanger & Co., Inc.
Robert A. Stanger & Co., Inc., founded in 1978, is a nationally recognized investment banking firm specializing in providing investment banking, financial advisory, fairness opinion and asset and securities valuation services to partnerships, real estate investment trusts and real estate advisory and management companies in support of strategic planning, capital formation and financings, mergers, acquisitions, reorganizations, and consolidations.
Stanger is also well known for its industry leading publications: The Stanger Report, a nationally recognized comprehensive report focused on non-traded REIT and BDC investing, including aggregate market statistics, total returns by company and total return indices, fee structure comparisons, and profiles of current offerings; The Stanger Market Pulse, a monthly deep-dive into alternative investment fundraising; The Stanger Chairman’s Report, focused on NAV REIT and non-traded BDC sales and redemptions; The Stanger Closed-End Fund Report, focused on non-traded interval fund and tender offer fund investing; Stanger Privates, a quarterly publication focused on Private Placement REITs and BDCs exclusively available to Stanger Institutional Access subscribers; and The Alt Street Journal, a weekly newsletter providing an update on industry activities.
For More Information:
Kevin T. Gannon | Chairman & CEO | (732) 389-3600
Robert A. Stanger & Co., Inc.
1129 Broad Street, Suite 201
Shrewsbury, NJ 07702
www.rastanger.com
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