Blackstone’s real estate division is facing renewed pressure as nearly a third of its senior managing directors have left over the past three years, coinciding with weaker investment-fund performance and a delayed flagship fundraise. Nadeem Meghji, who took sole responsibility for the global group in January, announced in September that he plans to leave by the end of 2026 to spend more time with his family, less than 10 months after former co-head Kathleen McCarthy Baldwin departed following 15 years at the firm. David Levine and Giovanni Cutaia were appointed to lead the unit under the continued involvement of Jon Gray, who built the business. The division had about $309 billion in assets under management as of Sept. 30, including nearly $47 billion awaiting deployment across 12 portfolios. Distributable earnings fell 10% from a year earlier, assets declined $30 billion from their peak and opportunistic strategies lost 3.2% in three months. The group’s profit is tracking at half its 2022 peak, while its $30 billion tenth flagship fund must invest at least 70% before Blackstone can market another fund. High interest rates, weak property values and limited transaction activity are weighing on returns, although data centers, warehouses, hotels and grocery-anchored retail are providing investment opportunities. Blackstone’s BREP IX fund has generated annualized net returns of 3% since beginning investments in 2019. Artificial-intelligence infrastructure has helped lift results, including through the sale of three fully leased Northern Virginia data centers and a lease of a 25-story San Francisco tower to Anthropic. The strategy may face a new test as voter concerns about AI strengthen the political influence of Elizabeth Warren, who is expected to chair the Senate Banking Committee and called in September for an immediate pause on advanced-AI development.