Edgar Filing: BLACKROCK INCOME TRUST INC

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THE BLACKROCK INCOME TRUST INC.
ANNUAL REPORT TO SHAREHOLDERS
REPORT OF INVESTMENT ADVISOR
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November 30, 2001

Dear Shareholder:

Economic activity slowed significantly during the annual period ended
October 31, 2001, continuing the downturn that began in March 2000. The
September 11 attacks on the World Trade Center and the Pentagon accelerated this
decline. Inflation adjusted Gross Domestic Product (GDP) fell at a 0.4% annual
rate during the third quarter, reaffirming that the economy is officially headed
towards recession, which is defined as two consecutive quarters of negative
growth as measured by GDP. In response to the dramatic slowdown in the U.S.
economy, The Federal Reserve Board aggressively lowered interest rates over the
period. In stark contrast to its three interest rate increases in February,
March, and May of 2000, the Federal Open Market Committee (FOMC) has cut
interest rates ten times in 2001. Year-to-date, the FOMC has reduced interest
rates by 4.50%, bringing the current Federal Funds rate to 2.00%, its lowest
level since September 1961.

The weakening U.S. economic environment and the accompanying Federal
Reserve activity have had a positive effect on the fixed income markets.
Virtually all sectors of the fixed income market, with the exception of high
yield, posted double-digit returns over the annual period ended October 31,
2001. As short-term interest rates declined faster than long-term interest rates
over the period, the yield curve reached historically steep levels, making it a
very attractive time for leveraged bond funds. Because these funds borrow at
short-term rates and invest in long-term securities, the amount they earn grows
as the difference between short-term and long-term rates increases. Furthermore,
inflation is anticipated to decline to multi-decade lows, which should support
high-quality fixed income securities, especially those with longer maturities.

The rallies in the fixed income markets have barely offset the adverse
impact of the deteriorating equity market. For the year ending October 31, 2001,
the S&P 500 and Nasdaq fell 25.49% and 49.39%, respectively, and, while we
believe that aggressive monetary and fiscal stimulus will help stabilize the
economy, we expect growth to remain below potential for a more prolonged period.
Consumption is unlikely to pick up significantly in the face of sizable job
cuts, the likelihood that flexible compensation (bonus, profit sharing, options)
will be sharply lower, and that state and local government spending may be
significantly curtailed next year. In this environment, we expect a period of
prolonged lower interest rates. Although somewhat discouraging for the American
consumer, this low inflation/low interest rate environment should continue to
benefit fixed income securities. We expect spread products like high quality
corporates and mortgages to perform well relative to U.S. Treasuries.

This annual report contains a summary of market conditions during the
annual period and a review of portfolio strategy by your Trust's managers in
addition to the Trust's audited financial statements and a listing of the
portfolio's holdings at October 31, 2001. Continued thanks for your confidence
in BlackRock. We appreciate the opportunity to help you achieve your long-term
investment goals.

Sincerely,

/s/ LAURENCE D. FINK /s/ RALPH L. SCHLOSSTEIN
-------------------- ------------------------
Laurence D. Fink Ralph L. Schlosstein
Chairman President

November 30, 2001
Dear Shareholder:

We are pleased to present the annual report for The BlackRock Income Trust
Inc. ("The Trust") for the year ended October 31, 2001. We would like to take
this opportunity to review the Trust's stock price and net asset value (NAV)
performance, summarize market developments and discuss recent portfolio
management activity.

The Trust is a diversified, actively managed closed-end bond fund whose
shares are traded on the New York Stock Exchange under the symbol "BKT". The
Trust's investment objective is to provide high current income consistent with
the preservation of capital. The Trust seeks this objective by investing
primarily in mortgage-backed securities backed by U.S. Government agencies (such
as Fannie Mae, Freddie Mac or Ginnie Mae) and, to a lesser extent, U.S.
Government securities, asset-backed securities and privately issued
mortgage-backed securities. At least 85% of the Trust's assets must be issued or
guaranteed by the U.S. Government or its agencies or rated "AAA" by Standard &
Poor's or "Aaa" by Moody's (up to 5% can be unrated and deemed by the Adviser to
be of equivalent credit quality); the remaining 15% of the Trust's assets must
be rated at least "AA" by Standard & Poor's or "Aa" by Moody's at the time of
purchase.

The table below summarizes the changes in the Trust's stock price and NAV:

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10/31/01 10/31/00 CHANGE HIGH LOW
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STOCK PRICE $ 7.26 $6.375 13.88% $7.72 $6.3125
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NET ASSET VALUE (NAV) $ 8.06 $7.23 11.48% $8.06 $7.13
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10-YEAR TREASURY NOTE 4.23% 5.75% (26.43)% 5.86% 4.23%
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THE FIXED INCOME MARKETS

Investor hopes for a soft landing quickly turned to fears of a recession as
the U.S. economy rapidly deteriorated over the year. Prior to the events of
September 11, our economic outlook envisioned an extended period of sluggish
growth, with the risk of a more severe deterioration if consumer confidence and
spending declined by any considerable degree. Economic data prior to the attacks
suggests that the scenario of a more severe contraction may have been in the
works. Year-over-year industrial production was down, 4.8% in August, the
largest yearly decline since 1982. The unemployment rate had drifted up to 4.9%
from a low of 3.9% in October of last year, and the four-week average of initial
jobless claims rose to its highest level in nearly a decade. Consumer confidence
was starting to wane, and consumer credit outstanding had begun to decline. The
events of September 11 undoubtedly further weakened consumer sentiment. The
Conference Board's consumer confidence index posted its biggest one-month
decline since 1990. According to the minutes of the October 2, 2001 Federal Open
Market Committee meeting, "The terrorist attacks have significantly heightened
uncertainty in an economy that was already weak. Business and household spending
as a consequence are being further damped. Nonetheless, the long-term prospects
for productivity growth and the economy remain favorable and should become
evident once the unusual forces restraining demand abate." During the fiscal
year ended October 31, 2001, the Federal Reserve aggressively lowered the
Federal Funds rate by a total of 4.00% to bring it to 2.50%. On November 6, 2001
the Federal Reserve announced another interest rate cut, bringing the current
Fed Funds rate to 2.00%.

Over the course of the year, the U.S. Treasury yield curve steepened
significantly as the bond market rallied in response to the slowing U.S. economy
and the aggressive interest rate cuts by the Federal Reserve. U.S. Treasury
yields on the short-end of the yield curve fell sharply from a 5.91% yield on
2-year U.S. Treasuries as of October 31, 2000 to a 2.42% yield on October 31,
2001 in reaction to the Federal Reserve cutting short-term rates by 4%. During
the period, the yield on the 10-year U.S. Treasury fell from 5.75% on October
31, 2000 to 4.23% on October 31, 2001. U.S. Treasury yields continue to fall due
to further Federal Reserve easing and an anticipation of increased supply in
order to raise capital to support programs implemented as a result of the tragic
events that occurred on September 11, 2001. On October 31, 2001, the U.S.
Treasury announced plans to stop selling 30-year U.S. Treasuries maintaining
that the government does "not need the 30-year bond to meet [its] current
financ-

ing needs." On the news that the U.S. Treasury would discontinue a program that
issued a total of $600 billion in debt since its official inception in 1977, the
30-year bond price increased by more than 5% and yields, which react inversely
to changes in price, fell over 36 basis points. As a result, the on-the-run
curve, which measures yields on newly issued U.S. Treasuries, flattened 32 basis
points.

For the annual period, the LEHMAN MORTGAGE INDEX returned 13.08% versus
14.56% for the LEHMAN AGGREGATE INDEX. The annual period began with an increase
in prepayments and a shift in monetary policy, which contributed to increasing
levels of volatility in the market. The beginning of 2001 saw the steepest yield
curve since 1996, and, as the Federal Reserve continued to lower short-term
rates throughout the year, refinancing activity surged toward historical highs
and pass-through issuance continued to be very strong. Going forward, with
mortgage rates at multi-year lows, the supply of new mortgages should continue
to be at historically high levels. However, as the vast majority of these
mortgages will have been the result of refinancing transactions, the demand from
mortgage investors reinvesting prepayments should also be very large. Given
current market conditions, the mortgage-backed securities sector is benefiting
from its combination of liquidity, credit quality, and yield pickup versus
Treasuries.

THE TRUST'S PORTFOLIO AND INVESTMENT STRATEGY

BlackRock actively manages the Trust's portfolio holdings consistent with
BlackRock's overall market outlook and the Trust's investment objectives. The
Trust is managed to maintain an interest rate sensitivity (or duration)
resembling that of the SALOMON BROTHERS MORTGAGE INDEX; this means that the
portfolio's NAV will change similarly to the price of the Index given a change
in interest rates.

Additionally, the Trust employs leverage to enhance its income by borrowing
at short-term rates and investing the proceeds in longer maturity issues that
have higher yields. The degree to which the Trust can benefit from its use of
leverage may affect its ability to pay monthly income.

Midway through the fourth quarter of 2000, the Trust increased its
allocation to U.S. Government securities. The increase in U.S. Government
securities helped boost the Trust's overall liquidity to protect from the
volatile market environment. The Trust purchased commercial mortgage-backed
securities (CMBS) early in the period as they offered the best value due to a
combination of cash flow stability, quality, and wide spreads to swaps. Once the
Trust's CMBS holdings reached full valuation, they were then sold in order to
purchase more U.S. Government securities as well as inverse floating rate
mortgages. The Trust reduced its allocation to agency multiple class mortgage
pass-throughs over the period, as they underperformed given increased market
volatility and faster prepayment speed assumptions.

The following chart compares the Trust's asset composition:

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SECTOR BREAKDOWN
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COMPOSITION OCTOBER 31, 2001 OCTOBER 31, 2000
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Inverse Floating Rate Mortgages 31% 24%
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Interest Only Mortgage-Backed Securities 17% 21%
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U.S. Government Securities 17% 7%
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Principal Only Mortgage-Backed Securities 12% 12%
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FHA Project Loans 7% 9%
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Mortgage Pass-Throughs 6% 8%
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Agency Multiple Class Mortgage Pass-Throughs 5% 11%
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Commercial Mortgage-Backed Securities 3% 4%
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Non-Agency Multiple Class Mortgage Pass-Throughs 2% 2%
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Adjustable Rate Mortgages -- 2%
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We look forward to continuing to manage the Trust to benefit from the
opportunities available to investors in the investment grade municipal market.
We thank you for your investment and continued interest in The BlackRock Income
Trust, Inc. Please feel free to call our marketing center at (800) 227-7BFM
(7236) if you have any specific questions that were not addressed in this
report.

Sincerely,

/s/ ROBERT S. KAPITO /s/ KEITH T. ANDERSON /s/ MICHAEL P. LUSTIG
-------------------- --------------------- ---------------------
Robert S. Kapito Keith T. Anderson Michael P. Lustig
Vice Chairman Managing Director and Managing Director and
and Portfolio Manager Chief Investment Officer--Fixed Income Portfolio Manager

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THE BLACKROCK INCOME TRUST INC.
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Symbol on New York Stock Exchange: BKT
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Initial Offering Date: July 22, 1988
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Closing Stock Price as of 10/31/01: $7.26
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Net Asset Value as of 10/31/01: $8.06
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Yield on Closing Stock Price as of 10/31/01 ($7.26)(1): 7.75%
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Current Monthly Distribution per Share(2): $0.046875
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Current Annualized Distribution per Share(2): $0.562500
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(1) Yield on Closing Stock Price is calculated by dividing the current
annualized distribution per share by the closing stock price per share.

(2) Distribution is not constant and is subject to change.

PRIVACY PRINCIPLES OF THE TRUST

The Trust is committed to maintaining the privacy of shareholders and to
safeguarding its non-public personal information. The following information is
provided to help you understand what personal information the Trust collects,
how we protect that information and why, in certain cases, we may share
information with select other parties.

Generally, the Trust does not receive any non-public personal information
relating to its shareholders, although certain nonpublic personal information of
its shareholders may become available to the Trust. The Trust does not disclose
any non-public personal information about its shareholders or former
shareholders to anyone, except as permitted by law or as is necessary in order
to service shareholder accounts (for example, to a transfer agent or third party
administrator).

The Trust restricts access to non-public personal information about the
shareholders to BlackRock employees with a legitimate business need for the
information. The Trust maintains physical, electronic and procedural safeguards
designed to protect the non-public personal information of its shareholders.

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THE BLACKROCK INCOME TRUST INC.
PORTFOLIO OF INVESTMENTS
OCTOBER 31, 2001
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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
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LONG-TERM INVESTMENTS--122.5%
MORTGAGE PASS-THROUGHS--7.5%
Federal Home Loan Mortgage Corp.,
$ 893 6.50%, 5/01/29 - 5/01/30 .............. $ 920,261
1,697 7.50%, 7/01/07 - 2/01/23 .............. 1,806,438
456 8.00%, 11/01/15 ....................... 481,599
512 8.50%, 10/01/06 - 3/01/08,
15 Year ............................. 548,043
1,028 9.00%, 9/01/20 ........................ 1,113,752
Federal National Mortgage Association,
2,417@ 5.50%, 12/01/13 - 2/01/14,
15 Year ............................. 2,459,140
6,963@ 6.50%, 2/01/26 - 6/01/29 .............. 7,174,005
5,110 7.00%, 6/01/26 - 9/01/29 .............. 5,328,508
5,418 7.50%, 11/01/14,
18 Year Multifamily ................. 5,673,402
63 7.50%, 9/01/23 ........................ 65,457
2,121 8.00%, 5/01/08 - 5/01/22,
Multifamily ......................... 2,254,532
1,396 9.497%, 6/01/24, Multifamily .......... 1,478,445
18 9.50%, 1/01/19 - 6/1/20 ............... 18,843
Government National Mortgage
Association,
408 7.00%, 10/15/17 ....................... 425,450
4,123 7.50%, 8/15/21 - 12/15/23 ............. 4,333,666
3,420 8.00%, 10/15/22 - 2/15/29 ............. 3,633,175
12 8.50%, 2/15/17 ........................ 12,688
290 9.00%, 6/15/18 - 9/15/21 .............. 308,805
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38,036,209
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FEDERAL HOUSING ADMINISTRATION--8.7%
2,956 Beachtree, Series 87430,
10.25%, 6/01/32 ....................... 3,048,168
GMAC,
5,290 Series 33, 7.43%, 9/01/21 ............. 5,246,314
2,010 Series 46, 7.43%, 3/01/22 ............. 1,975,406
825 Series 48, 7.43%, 8/01/21 ............. 813,379
1,152 Series 51, 7.43%, 2/01/23 ............. 1,156,757
5,544 Series 56, 7.43%, 11/01/22 ............ 5,562,343
1,058 Merrill, Series 54, 7.43%, 2/1/23 ....... 1,052,258
3,903 Parkside, 7.30%, 3/01/13 ................ 3,981,204
964 Reilly, Series 41, 8.767%, 12/1/18 ...... 984,698
2,800 Tuttle Grove, 7.25%, 10/01/35 ........... 2,904,189
USGI,
4,037 Polaris, Series 982, 7.43%,
11/01/21 ............................ 3,980,228
784 Series 87, 7.43%, 12/01/22 ............ 793,907
3,211 Series 99, 7.43%, 10/01/23 ............ 3,282,483
2,568 Series 6302, 7.43%, 12/01/21 .......... 2,548,531
6,539 Yorkville, Series 6094, 7.43%,
6/01/21 ............................. 6,529,016
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43,858,881
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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
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AGENCY MULTIPLE CLASS MORTGAGE
PASS-THROUGHS--5.6%
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
$12,894@ Series T-11, Class A-9,
1/25/28 ............................. $ 11,167,728
3,121@ Series 1104, Class 1104-L,
6/15/21 ............................. 3,388,037
1,063@ Series 1347, Class 1347-HC,
12/15/21 ............................ 1,071,109
67 Series 1559, Class 1559-WA,
7/15/22 ............................. 67,581
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
1,035@ Trust 1988-16, Class 16-B, 6/25/18 .... 1,148,107
1,766@ Trust 1990-12, Class 12-G,
2/25/20 ............................. 1,782,800
2,755 Trust 1992-43, Class 43-E,
4/25/22 ............................. 2,943,764
6,797@ Trust 1996-14, Class 14-M,
10/25/21 ............................ 6,684,473
204 Trust 1997-43, Class 43-G,
4/18/27 ............................. 203,768
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28,457,367
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NON-AGENCY MULTIPLE CLASS
MORTGAGE PASS-THROUGHS--2.1%
AAA 8,397 Credit Suisse First Boston
Mortgage Certificates,
Series 2000-1, Class 2A,
3/15/15 ............................. 8,475,923
AAA 2,251 Summit Mortgage Trust,
Series 2000-1, Class B1,**
12/28/12 ............................ 2,277,065
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10,752,988
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ADJUSTABLE RATE MORTGAGES--1.0%
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
903 Trust 1991-38, Class 38-F,
4/25/21 ............................. 973,014
2,017 Trust 1993-248, Class 248-FB,
9/25/23 ............................. 1,954,425
2,147 Trust 1993-256, Class 256-F,
11/25/23 ............................ 1,889,219
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4,816,658
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See Notes to Financial Statements.
5

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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
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INVERSE FLOATING RATE
MORTGAGES--38.1%
Countrywide Funding Corp.,
Mortgage Certificates,
AAA $ 3,394 Series 1993-10, Class A-8,
1/25/24 ........................... $ 3,463,494
AAA 6,202 Series 1994-9, Class A-16,
5/25/24 ........................... 6,338,142
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
327 Series 1160, Class 1160-F,
10/15/21 .......................... 412,026
8,223@ Series 1518, Class 1518-G,
5/15/23 ........................... 7,122,874
4,257 Series 1526, Class 1526-SA,
6/15/23 ........................... 3,409,659
2,458 Series 1570, Class 1570-SA,
8/15/23 ........................... 2,457,621
3,000 Series 1577, Class 1577-SC,
9/15/23 ........................... 3,207,188
2,269 Series 1580, Class 1580-SD,
9/15/08 ........................... 2,312,420
13,281@ Series 1584, Class 1584-FB,
9/15/23 ........................... 13,163,810
3,219 Series 1587, Class 1587-SE,
5/15/08 ........................... 3,318,527
934 Series 1590, Class 1590-OA,
10/15/23 .......................... 948,683
4,068 Series 1598, Class 1598-S,
10/15/08 .......................... 4,108,695
2,169 Series 1601, Class 1601-SE,
10/15/08 .......................... 2,187,892
2,954 Series 1604, Class 1604-MB,
11/15/08 .......................... 3,029,506
1,457 Series 1616, Class 1616-SB,
11/15/08 .......................... 1,486,298
4,785 Series 1625, Class 1625-SC,
12/15/08 .......................... 4,818,037
3,640 Series 1627, Class 1627-S,
12/15/23 .......................... 3,729,928
5,038 Series 1627, Class 1627-SC,
12/15/23 .......................... 3,379,408
3,084 Series 1629, Class 1629-OD,
12/15/23 .......................... 3,076,681
14,932@ Series 1637, Class 1637-UA,
12/15/23 .......................... 13,887,046
5,000 Series 1649, Class 1649-S,
12/15/08 .......................... 5,106,250
2,259 Series 1666, Class 1666-S,
1/15/24 ........................... 2,186,468
2,250 Series 1688, Class 1688-S,
12/15/13 .......................... 2,272,500
5,778 Series 1699, Class 1699-ST,
3/15/24 ........................... 4,573,439
1,460 Series 2111, Class 2111-SX,
1/15/29 ........................... 1,350,956
3,962 Series 2190, Class 2190-S,
10/15/14 .......................... 4,241,639

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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
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Federal National Mortgage Association,
REMIC Pass-Through Certificates,
$ 199 Trust G93-27, Class 27-SB,
8/25/23 ........................... $ 176,655
915 Trust 1991-38, Class 38-SA,
4/25/21 ........................... 946,434
875 Trust 1991-87, Class 87-S,
8/25/21 ........................... 1,236,684
588 Trust 1991-145, Class 145-S,
10/25/06 .......................... 727,176
5,000 Trust 1993-79, Class 79-SE,
1/25/22 ........................... 5,278,125
1,959 Trust 1993-93, Class 93-S,
5/25/08 ........................... 2,085,852
2,388 Trust 1993-113, Class 113-SB,
7/25/23 ........................... 2,472,088
328 Trust 1993-116, Class 116-SB,
7/25/23 ........................... 341,832
374@ Trust 1993-129, Class 129-SE,
8/25/08 ........................... 365,621
2,886 Trust 1993-147, Class 147-S,
8/25/23 ........................... 3,116,779
104 Trust 1993-167, Class 167-SA,
9/25/23 ........................... 107,518
2,701@ Trust 1993-170, Class 170-SC,
9/25/08 ........................... 2,775,138
3,500 Trust 1993-179, Class 179-SB,
10/25/23 .......................... 3,762,500
4,000 Trust 1993-196, Class 196-SC,
10/25/08 .......................... 4,337,080
872 Trust 1993-201, Class 201-SA,
10/25/23 .......................... 760,980
6,006 Trust 1993-214, Class 214-S,
12/25/08 .......................... 6,141,031
1,494 Trust 1993-214, Class 214-SH,
12/25/08 .......................... 1,513,846
1,598 Trust 1993-224, Class 224-SD,
11/25/23 .......................... 1,597,484
2,562 Trust 1993-247, Class 247-SN,
12/25/23 .......................... 2,984,336
1,144 Trust 1994-19, Class 19-SB,
1/25/24 ........................... 1,025,089
323 Trust 1994-27, Class 27-SE,
3/25/23 ........................... 323,794
1,000 Trust 1994-50, Class 50-S,
3/25/24 ........................... 1,025,840
1,231 Trust 1996-21, Class 21-S,
5/25/11 ........................... 1,250,752
2,101 Trust 1999-1, Class 1-S,
7/25/23 ........................... 2,135,233
516 Trust 2000-40, Class 40-FC,
6/25/29 ........................... 465,495
7,261 Trust 2001-11B, Class 11B-SB,
4/18/29 ........................... 7,548,390

See Notes to Financial Statements.
6

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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------
INVERSE FLOATING RATE
MORTGAGES (CONT'D)
G. E. Capital Mortgage Services, Inc.,
AAA $ 8,598 REMIC Certificate 94-7, Class A-17,
2/25/09 ............................. $ 8,082,051
AAA 10,000 REMIC Certificate 94-16, Class A-13,
8/25/24 ............................. 9,676,564
AAA 716 REMIC Certificate 98-12, Class 4A-3,
7/25/28 ............................. 622,816
Aaa 2,519 Kidder Peabody Acceptance Corp.,
Series 1993-1, Class A-6,
8/25/23 ............................. 2,556,596
Prudential Home Mortgage Securities Co.,
Mortgage Pass-Through Certificates,
AAA 743 Series 1993-43, Class A-16,
10/25/23 ............................ 742,899
AAA 2,500 Series 1993-48, Class A-8,
12/25/08 ............................ 2,403,125
AAA 8,929 Series 1993-50, Class A-12,
11/25/23 ............................ 7,684,209
AAA 1,000 Series 1993-54, Class A-28,
1/25/24 ............................. 963,125
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192,822,324
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INTEREST ONLY MORTGAGE-BACKED
SECURITIES--20.8%
711 American Housing Trust III, Senior
Mortgage Pass-Through Certificates,
Series 1, Class 4, (REMIC),
3/25/19 ............................. 214,978
162 American Housing Trust VII, Senior
Mortgage Pass-Through Certificates,
Series A, Class 2,
11/25/20 ............................ 678,000
BA Mortgage Securities, Inc.,
1,410 Series 1997-1, Class X, 7/25/26 ........ 94,282
1,588 Series 1998-1, Class 2X, 5/28/13 ....... 228,087
114,166 Commercial Mortgage Acceptance Corp.,
Series 1997-ML1, Class IO,
12/15/30 ............................ 4,327,150
13,149 Countrywide Funding Corp.,
Mortgage Certificates,
Series 1997-8, Class A-5,
1/25/28 ............................. 26,709
40,685 Credit Suisse First Boston Mortgage
Securities Corp. Trust,
Series 1997-C1, Class C1-AX ,**
6/20/29 ............................. 3,029,820
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
22,066 Series G-13, Class 13-PP,
5/25/21 ............................. 1,732,855
86,034 Series G-60, Class 60-HS,
4/25/24 ............................. 3,589,236
20,710 Series 204, Class 204-IO,
5/01/29 ............................. 3,805,543
6 Series 1238, Class 1238-J,
1/15/07 ............................. 54,465

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PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------
$ 8,672 Series 1353, Class 1353-S,
8/15/07 ............................. $ 533,609
17,343 Series 1377, Class 1377-S,
9/15/07 ............................. 1,238,413
105 Series 1388, Class 1388-I,
6/15/07 ............................. 1,553,885
2,617 Series 1397, Class 1397-IO,
10/15/22 ............................ 432,266
200 Series 1494, Class 1494-PL,
3/15/22 ............................. 1,057,074
1,104 Series 1632, Class 1632-S,
4/15/23 ............................. 33,642
4,395 Series 1706, Class 1706-IA,
10/15/23 ............................ 633,115
687 Series 1720, Class 1720-PK,
1/15/24 ............................. 134,614
48,422 Series 1809, Class 1809-SC,
12/15/23 ............................ 2,723,228
2,249 Series 1882, Class 1882-PJ,
4/15/22 ............................. 70,713
4,053 Series 1900, Class 1900-SV,
8/15/08 ............................. 782,827
38,564 Series 1914, Class 1914-PC,
12/15/11 ............................ 556,869
2,716 Series 1917, Class 1917-AS,
5/15/08 ............................. 183,565
17,938 Series 1946, Class 1946-SG,
3/15/24 ............................. 4,864,702
15,106 Series 2002, Class 2002-HJ,
10/15/08 ............................ 1,177,911
6,336 Series 2037, Class 2037-IB,
12/15/26 ............................ 389,231
5,299 Series 2039, Class 2039-PI,
2/15/12 ............................. 408,985
9,112 Series 2050, Class 2050-PI,
12/15/11 ............................ 1,173,163
7,558 Series 2063, Class 2063-PI,
4/15/12 ............................. 831,418
3,794 Series 2066, Class 2066-PJ,
12/15/26 ............................ 577,289
18,000 Series 2080, Class 2080-PL,
1/15/27 ............................. 4,054,500
32 Series 2099, Class 2099-JB,
9/15/22 ............................. 1,066,620
2,723 Series 2102, Class 2102-KI,
9/15/28 ............................. 411,789
9,137 Series 2103, Class 2103-PI,
5/15/12 ............................. 616,759
23,000 Series 2130, Class 2130-SC,
3/15/29 ............................. 2,314,375
8,504 Series 2140, Class 2140-UK,
9/15/11 ............................. 744,092
4,633 Series 2190, Class 2190-SC,
10/15/14 ............................ 448,110

See Notes to Financial Statements.
7

--------------------------------------------------------------------------------
PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------
INTEREST ONLY MORTGAGE-BACKED
SECURITIES (CONT'D)
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
$ 15,918 Series 2289, Class 2289-S,
2/15/31 ............................. $ 1,591,786
15,049 Series 2296, Class 2296-IO,
8/15/27 ............................. 1,490,734
26,034 Series 2296, Class 2296-SA,
3/15/16 ............................. 1,818,297
8,592 Series 2315, Class 2315-CF,
7/15/20 ............................. 869,955
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
5 Trust G50, Class 50-G,
12/25/21 ............................ 106,600
1,446 Trust G92-5, Class 5-H,
1/25/22 ............................. 322,501
4 Trust G92-12, Class 12-C,
2/25/22 ............................. 77,056
5,214 Trust G92-60, Class 60-SB,
10/25/22 ............................ 126,386
15,153 Trust 301, Class 2,
4/01/29 ............................. 2,326,268
40,781 Trust 302, Class 2,
6/01/29 ............................. 7,601,807
23 Trust 1992-187, Class 187-JA,
10/25/06 ............................ 2
3,788 Trust 1993-46, Class 46-S,
5/25/22 ............................. 243,396
7,150 Trust 1993-199, Class 199-SB,
10/25/23 ............................ 657,437
7,613 Trust 1993-201, Class 201-JC,
5/25/19 ............................. 321,786
1,385 Trust 1993-202, Class 202-QA,
6/25/19 ............................. 48,272
23,124 Trust 1994-33, Class 33-SG,
3/25/09 ............................. 1,723,480
11,816 Trust 1995-26, Class 26-SW,
2/25/24 ............................. 1,430,454
12,371 Trust 1996-68, Class 68-SC,
1/25/24 ............................. 1,507,702
27,323 Trust 1997-37, Class 37-SE,
10/25/22 ............................ 383,015
7,097 Trust 1997-50, Class 50-SI,
4/25/23 ............................. 164,111
35,476 Trust 1997-65, Class 65-SB,
3/25/24 ............................. 1,682,393
27,000 Trust 1997-65, Class 65-SG,
6/25/23 ............................. 2,192,400
11,139 Trust 1997-76, Class 76-SP,
12/25/23 ............................ 1,926,104
51,000 Trust 1997-90, Class 90-M,
1/25/28 ............................. 14,139,750
6,733 Trust 1998-12, Class 12-PL,
7/18/19 ............................. 177,022

--------------------------------------------------------------------------------
PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------
$ 5,725 Trust 1998-25, Class 25-PG,
3/18/22 ............................. $ 336,158
6,579 Trust 1999-56B, Class 56B-SB,
10/25/29 ............................ 506,055
5,230 Trust 1999-W4, Class W4-IO,
12/25/28 ............................ 913,628
36,742 Trust 2000-2, Class 2-ID,
3/25/23 ............................. 264,081
414 First Boston Mortgage Securities Corp.,
Series 1987-C, Class C-2,
4/25/17 ............................. 96,054
41,543 GMAC Commercial Mortgage
Securities, Inc.,
Trust 1997-C1, Class C1-X,
7/15/29 ............................. 2,881,010
42,840 Goldman Sachs Mortgage Securities
Corp., Mortgage
Participation Certificates,
Series 1998-5, Class 5-IO,**
6/19/27 ............................. 896,958
Government National Mortgage
Association, REMIC Pass-Through
Certificates,
3,864 Trust 1998-14, Class 14-PK,
11/20/26 ............................ 696,303
13,478 Trust 1999-5, Class 5-S,
2/16/29 ............................. 673,881
42,766 Trust 1999-8, Class 8-S,
3/16/29 ............................. 2,218,485
27,298 Hanover Grantor Trust,
Series 1999-A, Class A1-IO,**
8/28/27 ............................. 716,566
26,582 Headlands Mortgage Securities, Inc.,
Mortgage Certificates,
Series 1997-1, Class X-1,
3/25/27 ............................. 249,205
499 Kidder Peabody Acceptance Corp.,
Series B, Class A-2,
4/22/18 ............................. 99,994
11,907 Merrill Lynch Mortgage Investors, Inc.,
Mortgage Pass-Through Certificates,
Series 95-C2, Class C2-IO,
6/15/21 ............................. 312,549
16,807 Morgan Stanley Capital 1, Inc.,
Series 1997-HF1, Class HF1-X,**
7/15/29 ............................. 997,843
90,574 Prudential Home Mortgage Securities Co.,
Mortgage Pass-Through Certificates,
Series 1994-5, Class A-9,
2/25/24 ............................. 169,827
1 Prudential Securities, Inc.,
Trust 15, Class 1-G,
5/20/21 ............................. 93,728
8,826 Residential Funding Mortgage
Securities I, Series 2001-S5,
Class A-9, 3/25/31 .................. 459,419

See Notes to Financial Statements.
8

--------------------------------------------------------------------------------
PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------
INTEREST ONLY MORTGAGE-BACKED
SECURITIES (CONT'D)
$ 50,457 Small Business Administration,
Series 2000-1, Class 1-I0,
4/01/15 ............................ $ 1,482,167
8 Structured Asset Securities Corp.,
Series 1991-2, Class 2-GA,
12/20/21 ........................... 79,388
387,146 United States Department of
Veteran Affairs, Trust 1999-2,
Class 2-1-IO,
5/15/29 ............................ 544,424
8,596 Wells Fargo Mortgage
Backed Securities Trust,
Series 2001-15, Class 2-A9,
7/25/31 ............................ 1,165,790
------------
105,576,116
------------
PRINCIPAL ONLY MORTGAGE-BACKED
SECURITIES--14.5%
Aaa 539 Chase Mortgage Finance Corp.,
Mortgage Pass-Through Certificates,
Series 1994-A, Class AP,
1/25/10 ............................ 507,626
AAA 374 Collateralized Mortgage Obligation
Trust, Trust 29, Class A,
5/23/17 ............................ 328,019
Drexel Burnham Lambert, Inc.,
AAA 144 Trust K, Class K-1,
9/23/17 ............................ 118,311
AAA 1,463 Trust V, Class V-1A,
9/01/18 ............................ 1,390,028
Federal Home Loan Mortgage Corp.,
Multiclass Mortgage
Participation Certificates,
1,510 Series G-50, Class 50-AM,
4/25/24 ............................ 1,499,275
1,606 Series T-8, Class A-10,
11/15/28 ........................... 999,125
646 Series 1418, Class 1418-M,
11/15/22 ........................... 433,736
2,653 Series 1571, Class 1571-G,
8/15/23 ............................ 1,694,656
12,152 Series 1686, Class 1686-B,
2/15/24 ............................ 10,025,085
1,293 Series 1691, Class 1691-G,
3/15/24 ............................ 1,280,329
2,277 Series 1739, Class 1739-B,
2/15/24 ............................ 2,072,287
490 Series 1750, Class 1750-PC,
3/15/24 ............................ 473,458
1,101 Series 1857, Class 1857-PB,
12/15/08 ........................... 1,048,634
2,272 Series 1896, Class 1896-PA,
11/15/23 ........................... 2,067,145
5,500 Series 2009, Class 2009-HJ,
10/15/22 ........................... 4,862,330
8,019 Series 2082, Class 2082-PN,
1/15/24 ............................ 6,716,272

--------------------------------------------------------------------------------
PRINCIPAL
RATING* AMOUNT VALUE
(UNAUDITED) (000) DESCRIPTION (NOTE 1)
--------------------------------------------------------------------------------
$ 845 Series 2087, Class 2087-PO,
9/15/25 ............................ $ 606,388
1,469 Series 2131, Class 2131-PO,
3/15/29 ............................ 1,322,134
1,027 Series 2162, Class 2162-L,
6/15/29 ............................ 636,563
2,354 Series 2169, Class 2169-EA,
6/15/29 ............................ 1,592,246
2,730 Series 2298, Class 2298-PO,
3/15/31 ............................ 2,457,234
Federal National Mortgage Association,
REMIC Pass-Through Certificates,
1,428 Trust G93-2, Class 2-KB,
1/25/23 ............................ 1,165,450
1,771 Trust 225, Class 225-1,
6/01/23 ............................ 1,588,675
1,495 Trust 279, Class 279-1,
7/01/26 ............................ 1,372,516
318 Trust 1991-7, Class 7-J,
2/25/21 ............................ 273,900
122 Trust 1994-9, Class 9-C,
8/25/23 ............................ 121,155
861 Trust 1996-5, Class 5-NH,
4/25/24 ............................ 717,382
530 Trust 1996-5, Class 5-PV,
11/25/23 ........................... 514,775
14,300@ Trust 1996-14, Class 14-PE,
8/25/23 ............................ 8,285,064
2,586 Trust 1996-38, Class 38-E,
8/25/23 ............................ 2,513,099
9,000 Trust 1998-26, Class 26-L,
3/25/23 ............................ 7,435,582
953 Trust 1998-48, Class 48-P,
8/18/28 ............................ 626,007
2,068 Trust 1999-W4, Class W4-PO,
2/25/29 ............................ 1,422,349
AAA 1,106 First Union Residential, Mortgage
Certificates,Series 1999-A,
Class A-1A-PO,
3/25/15 ............................ 932,349
AAA 13,000 FUND AMERICA INVESTORS CORP.,
Series 1993-C, Class B,
4/29/30 ............................ 2,559,882
1,156 Government National Mortgage
Association, REMIC Pass-Through
Certificates,
Trust 1999-40, Class 40-N,
6/20/27 ............................ 1,017,950
Housing Securities, Inc.,
AAA 115 Series 1992-EB, Class B-8,
9/25/22 ............................ 102,171
AAA 397 Series 1993-D, Class D-8,
6/25/23 ............................ 351,748
AAA 369 Structured Mortgage Asset Trust,
Series 1993-3C, Class CX,
4/25/24 ............................ 310,045
------------
73,440,980
------------

See Notes to Financial Statements.
9

COLLATERALIZED MORTGAGE
OBLIGATION RESIDUALS***
AAA 45 FBC Mortgage Securities Trust 16,
CMO, Series A-1, 7/01/17 ............. 117,265
------------
Total long-term investments
(cost $566,619,164) .................. 620,615,927
------------
SHORT-TERM INVESTMENT--0.2%
DISCOUNT NOTE--0.2%
1,200 Federal Home Loan Bank,
2.46%, 11/01/01
(cost $1,200,000) .................... 1,200,000
------------
Total investments--122.7%
(cost $567,819,164) .................. 621,815,927
------------
Liabilities in excess of
other assets--(22.7)% ................ (115,051,479)
------------
NET ASSETS--100% $506,764,448
============

-----------------
* Using the higher of Standard & Poors', Moody's or Fitch's rating.
** Security is exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration to qualified institutional buyers.
*** Illiquid security representing 0.02% of net assets.
@ Entire or partial principal amount pledged as collateral for reverse
repurchase agreements or financial futures contracts.

------------------------------------------------------------
KEY TO ABBREVIATIONS:
CMO -- Collateralized Mortgage Obligation.
REMIC -- Real Estate Mortgage Investment Conduit.
------------------------------------------------------------

See Notes to Financial Statements.
10

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 2001
--------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $567,819,164) (Note 1) .............. $621,815,927
Cash ............................................................ 315,125
Interest receivable ............................................. 8,790,421
Interest rate swaps, at value (amortized
cost $(47,009), (Notes 1 & 3) ................................. 2,132,515
Due from broker-variation margin (Notes 1 & 3) .................. 353,562
Receivable for investments sold ................................. 205,252
Interest rate caps, at value (amortized cost $1,488,949)
(Notes 1 & 3) ................................................. 2,335
Other assets .................................................... 84,208
------------
633,699,345
------------

LIABILITIES
Reverse repurchase agreements (Note 4) .......................... 118,634,250
Due to broker-collateral on interest rate swaps ................. 3,929,000
Interest rate floor, at value
(proceeds $1,132,875) (Notes 1 & 3) ........................... 3,646,864
Interest payable ................................................ 77,385
Investment advisory fee payable (Note 2) ........................ 278,282
Administration fee payable (Note 2) ............................. 85,363
Deferred directors fees (Note 1) ................................ 40,853
Other accrued expenses .......................................... 242,900
------------
126,934,897

------------
NET ASSETS ...................................................... $506,764,448
============
Net assets were comprised of:
Common stock, at par (Note 5) ................................. $ 628,499
Paid-in capital in excess of par .............................. 560,052,202
------------
560,680,701
Undistributed net investment income ........................... 9,030,291
Accumulated net realized loss ................................. (115,122,228)
Net unrealized appreciation ................................... 52,175,684

------------
Net assets, October 31, 2001 .................................... $506,764,448
============
NET ASSET VALUE PER SHARE:
($506,764,448 / 62,849,878 shares of
common stock issued and outstanding) .......................... $8.06
=====

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 2001
--------------------------------------------------------------------------------

NET INVESTMENT INCOME
Income
Interest earned (net of discount/premium
accretion/amortization of $24,989,536
and interest expense of $7,081,137) .......................... $39,789,568
-----------
Operating expenses
Investment advisory .......................................... 3,064,600
Administration ............................................... 942,954
Reports to shareholders ...................................... 156,000
Transfer agent ............................................... 141,000
Custodian .................................................... 129,000
Independent accountants ...................................... 103,000
Directors .................................................... 76,000
Legal ........................................................ 54,000
Registration ................................................. 51,000
Miscellaneous ................................................ 148,714
-----------
Total operating expenses ................................... 4,866,268
-----------
Net investment income .......................................... 34,923,300
-----------

REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on:
Investments .................................................. 5,728,857
Interest rate swaps .......................................... 409,733
Short sales .................................................. (1,402,553)
Futures ...................................................... (21,182,638)
-----------
(16,446,601)
-----------
Net change in unrealized appreciation
(depreciation) on:
Investments .................................................. 67,840,440
Futures ...................................................... 1,944,103
Interest rate swaps .......................................... 1,446,063
Interest rate caps ........................................... 430,319
Short sales .................................................. (17,614)
Interest rate floor .......................................... (2,513,989)
-----------
69,129,322
-----------
Net gain on investments ........................................ 52,682,721
-----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS .................................... $87,606,021
===========

See Notes to Financial Statements.
11

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
STATEMENT OF CASH FLOWS
YEAR ENDED OCTOBER 31, 2001
--------------------------------------------------------------------------------

RECONCILIATION OF NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS TO NET CASH
FLOWS USED FOR OPERATING ACTIVITIES
Net increase in net assets resulting from
operations .................................................... $ 87,606,021
------------
Increase in investments ......................................... (57,820,537)
Net realized loss ............................................... 16,446,601
Increase in unrealized appreciation ............................. (69,129,322)
Decrease in interest rate caps .................................. 1,342,046
Increase in interest rate floor ................................. 3,646,864
Decrease in interest receivable ................................. 715,957
Decrease in due from broker-variation margin .................... 359,936
Increase in other assets ........................................ (69,101)
Increase in receivable for investments sold ..................... (160,344)
Decrease in payable for investments sold short .................. (25,815,571)
Increase in interest rate swaps ................................. (1,540,081)
Decrease in interest payable .................................... (2,785,997)
Decrease in deposits with brokers for
securities sold short ......................................... 26,204,231
Increase in due to broker--collateral on
interest rate swaps ........................................... 2,137,000
Increase in accrued expenses .................................... 229,412
------------
Total adjustments ............................................. (106,238,906)
------------
Net cash flows used for operating activities .................... $(18,632,885)
============

INCREASE (DECREASE) IN CASH
Net cash flows used for operating activities .................... $(18,632,885)
Cash flows provided by financing activities:
Increase in reverse repurchase agreements ..................... 54,173,875
Cash dividends paid ........................................... (35,351,946)
------------
Net cash flows provided by financing activities ................. 18,821,929
------------
Net increase in cash .......................................... 189,044
Cash at beginning of year ..................................... 126,081
------------
Cash at end of year ........................................... $ 315,125
============

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
STATEMENTS OF CHANGES
IN NET ASSETS
--------------------------------------------------------------------------------

YEAR ENDED OCTOBER 31,
-------------------------------

2001 2000
------------ ------------

INCREASE (DECREASE)
IN NET ASSETS
Operations:
Net investment income ................ $ 34,923,300 $ 31,851,763
Net realized loss .................... (16,446,601) (725,982)
Net change in unrealized
appreciation (depreciation) .......... 69,129,322 (662,263)
------------ ------------
Net increase in
net assets resulting from
operations ........................... 87,606,021 30,463,518
Dividends from net investment
income ............................... (35,351,946) (35,352,025)
------------ ------------
Total increase (decrease) ............ 52,254,075 (4,888,507)

NET ASSETS
Beginning of year ...................... 454,510,373 459,398,880
------------ ------------
End of year (including undis-
tributed net investment
income of $9,030,291 and
$9,458,937, respectively) ............ $506,764,448 $454,510,373
============ ============

See Notes to Financial Statements.
12

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
FINANCIAL HIGHLIGHTS
--------------------------------------------------------------------------------

YEAR ENDED OCTOBER 31,
----------------------------------------------------------
2001 2000 1999 1998 1997
------- ------- ------- ------- -------

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year ..................... $ 7.23 $ 7.31 $ 7.94 $ 8.12 $ 7.61
------- ------- ------- ------- -------
Net investment income (net of interest expense of
$0.11, $0.12, $0.16, $0.19 and $0.18, respectively) .. .56 .50 .73 .62 .58
Net realized and unrealized gain (loss) .............. .83 (.02) (.80) (.24) .49
------- ------- ------- ------- -------
Net increase (decrease) from investment operations ..... 1.39 .48 (.07) .38 1.07
------- ------- ------- ------- -------
Dividends from net investment income ................... (.56) (.56) (.56) (.56) (.56)
------- ------- ------- ------- -------
Net asset value, end of year* .......................... $ 8.06 $ 7.23 $ 7.31 $ 7.94 $ 8.12
======= ======= ======= ======= =======
Per share market value, end of year* ................... $ 7.26 $ 6.38 $ 6.13 $ 6.94 $ 6.88
======= ======= ======= ======= =======
TOTAL INVESTMENT RETURN+ ............................... 23.23% 14.01% (4.04%) 9.29% 19.68%
======= ======= ======= ======= =======

RATIOS TO AVERAGE NET ASSETS:
Operating expenses ..................................... 1.03% 1.05% 1.01% 1.01% 1.02%
Operating expenses and interest expense ................ 2.54% 2.78% 3.03% 3.33% 3.44%
Net investment income .................................. 7.43% 7.11% 9.54% 7.74% 7.63%

SUPPLEMENTAL DATA:
Average net assets (000) ............................... $470,185 $448,027 $482,685 $506,858 $474,903
Portfolio turnover ..................................... 32% 114% 144% 214% 220%
Net assets, end of year (000) .......................... $506,764 $454,510 $459,399 $499,075 $510,230
Reverse repurchase agreements outstanding,
end of year (000) .................................... $118,634 $ 64,460 $186,451 $198,336 $228,530
Asset coverage++ ....................................... $ 5,272 $ 8,095 $ 3,478 $ 3,520 $ 3,233

-------------
* Net asset value and market value are published in BARRON'S on Saturday and
THE WALL STREET JOURNAL on Monday.

+ Total investment return is calculated assuming a purchase of common stock
at the current market price on the first day and a sale at the current
market price on the last day of the year reported. Dividends and
distributions, if any, are assumed for purposes of this calculation, to be
reinvested at prices obtained under the Trust's dividend reinvestment plan.
Total investment return does not reflect brokerage commissions. Past
performance is no guarantee of future results.

++ Per $1,000 of reverse repurchase agreement outstanding.

The information above represents the audited operating performance data for a
share of common stock outstanding, total investment return, ratios to average
net assets and other supplemental data for the years indicated. This information
has been determined based upon financial information provided in the financial
statements and market value data for the Trust's shares.

See Notes to Financial Statements.
13

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------

NOTE 1. ORGANIZATION
& ACCOUNTING
POLICIES
The BlackRock Income Trust Inc. (the "Trust"), a Maryland corporation, is a
diversified closed-end management in-vestment company. The investment objective
of the Trust is to achieve high monthly income consistent with preservation of
capital. The ability of issuers of debt securities held by the Trust to meet
their obligations may be affected by economic developments in a specific
industry or region. No assurance can be given that the Trust's investment
objective will be achieved.

The following is a summary of significant accounting policies followed by the
Trust.

SECURITIES VALUATION: The Trust values mortgage-backed, asset-backed and other
debt securities, interest rate swaps, caps, floors and non-exchange traded
options on the basis of current market quotations provided by dealers or pricing
services approved by the Trust's Board of Directors. In determining the value of
a particular security, pricing services may use certain information with respect
to transactions in such securities, quotations from dealers, market transactions
in comparable securities, various relationships observed in the market between
securities, and calculated yield measures based on valuation technology commonly
employed in the market for such securities. Exchange-traded options are valued
at their last sales price as of the close of options trading on the applicable
exchanges. In the absence of a last sale, options are valued at the average of
the quoted bid and asked prices as of the close of business. A futures contract
is valued at the last sale price as of the close of the commodities exchange on
which it trades. Short-term securities are valued at amortized cost. Any
securities or other assets for which such current market quotations are not
readily available are valued at fair value as determined in good faith under
procedures established by and under the general supervision and responsibility
of the Trust's Board of Directors.

REPURCHASE AGREEMENTS: In connection with transactions in repurchase agreements,
the Trust's custodian takes possession of the underlying collateral securities,
the value of which at least equals the principal amount of the repurchase
transaction, including accrued interest. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Trust may be delayed or limited.

OPTION SELLING/PURCHASING: When the Trust sells or purchases an option, an
amount equal to the premium received or paid by the Trust is recorded as a
liability or an asset and is subsequently adjusted to the current market value
of the option written or purchased. Premiums received or paid from writing or
purchasing options which expire unexercised are treated by the Trust on the
expiration date as realized gains or losses. The difference between the premium
and the amount paid or received on effecting a closing purchase or sale
transaction, including brokerage commissions, is also treated as a realized gain
or loss. If an option is exercised, the premium paid or received is added to the
proceeds from the sale or cost of the purchase in determining whether the Trust
has realized a gain or a loss on investment transactions. The Trust, as writer
of an option, may have no control over whether the underlying securities may be
sold (call) or purchased (put) and as a result bears the market risk of an
unfavorable change in the price of the security underlying the written option.

Options, when used by the Trust, help in maintaining a targeted duration.
Duration is a measure of the price sensitivity of a security or a portfolio to
relative changes in interest rates. For instance, a duration of "one" means that
a portfolio's or a security's price would be expected to change by approximately
one percent with a one percent change in interest rates, while a duration of
five would imply that the price would move approximately five percent in
relation to a one percent change in interest rates.

Option selling and purchasing is used by the Trust to effectively "hedge"
positions, or collections of positions, so that changes in interest rates do not
change the duration of the portfolio unexpectedly. In general, the Trust uses
options to hedge a long or short position or an overall portfolio that is longer
or shorter than the benchmark security. A call option gives the purchaser of the
option the right (but not obligation) to buy, and obligates the seller to sell
(when the option is exercised), the underlying position at the exercise price at
any time or at a specified time during the option period. A put option gives the
holder the right to sell and obligates the writer to buy the underlying position
at the exercise price at any time or at a specified time during the option
period. Put options can be purchased to effectively hedge a position or a
portfolio against price declines if a portfolio is long. In the same sense, call
options can be purchased to hedge a portfolio that is shorter than its benchmark
against price changes. The Trust can also sell (or write) covered call options
and put options to hedge portfolio positions.

The main risk that is associated with purchasing options is that the option
expires without being exercised. In this case, the option expires worthless and
the premium paid for the option is considered the loss. The risk associated with
writing call options is that the Trust may forego the opportunity for a profit

if the market value of the underlying position increases and the option is
exercised. The risk in writing put options is that the Trust may incur a loss if
the market value of the underlying position decreases and the option is
exercised. In addition, as with futures contracts, the Trust risks not being
able to enter into a closing transaction for the written option as the result of
an illiquid market.

INTEREST RATE SWAPS: In a simple interest rate swap, one investor pays a
floating rate of interest on a notional principal amount and receives a fixed
rate of interest on the same notional principal amount for a specified period of
time. Alternatively, an investor may pay a fixed rate and receive a floating
rate. Interest rate swaps are efficient as asset/liability management tools. In
more complex swaps, the notional principal amount may decline (or amortize) over
time.

During the term of the swap, changes in the value of the swap are recognized
as unrealized gains or losses by "marking-to-market" to reflect the market value
of the swap. When the swap is terminated, the Trust will record a realized gain
or loss equal to the difference between the proceeds from (or cost of) the
closing transaction and the Trust's basis in the contract, if any.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the swap. However, the Trust closely monitors swaps and does not
anticipate non-performance by any counterparty.

SWAP OPTIONS: Swap options are similar to options on securities except that
instead of selling or purchasing the right to buy or sell a security, the writer
or purchaser of the swap option is granting or buying the right to enter into a
previously agreed upon interest rate swap agreement at any time before the
expiration of the option. Premiums received or paid from writing or purchasing
options are recorded as liabilities or assets and are subsequently adjusted to
the current market value of the option written or purchased. Premiums received
or paid from writing or purchasing options which expires unexercised are treated
by the Trust on the expiration date as realized gains or losses. The difference
between the premium and the amount paid or received on effecting a closing
purchase or sale transaction, including brokerage commission, is also treated as
a realized gain or loss. If an option is exercised, the premium paid or received
is added to the proceeds from the sale or cost of the purchase in determining
whether the Trust has realized a gain or loss on investment transactions.

The main risk that is associated with purchasing swap options is that the
swap option expires without being exercised. In this case, the option expires
worthless and the premium paid for the swap option is considered the loss. The
main risk that is associated with the writing of a swap option is the market
risk of an unfavorable change in the value of the interest rate swap underlying
the written swap option.

Swap options may be used by the Trust to manage the duration of the Trust's
portfolio in a manner similar to more generic options described above.

FINANCIAL FUTURES CONTRACTS: A futures contract is an agreement between two
parties to buy and sell a financial instrument for a set price on a future date.
Initial margin deposits are made upon entering into futures contracts and can be
either cash or securities. During the period the futures contract is open,
changes in the value of the contract are recognized as unrealized gains or
losses by "marking-to-market" on a daily basis to reflect the market value of
the contract at the end of each day's trading. Variation margin payments are
made or received, depending upon whether unrealized gains or losses are
incurred. When the contract is closed, the Trust records a realized gain or loss
equal to the difference between the proceeds from (or cost of) the closing
transaction and the Trust's basis in the contract.

Financial futures contracts, when used by the Trust, help in maintaining a
targeted duration. Futures contracts can be sold to effectively shorten an
otherwise longer duration portfolio. In the same sense, futures contracts can be
purchased to lengthen a portfolio that is shorter than its duration target.
Thus, by buying or selling futures contracts, the Trust can effectively "hedge"
positions so that changes in interest rates do not change the duration of the
portfolio unexpectedly.

The Trust may invest in financial futures contracts primarily for the purpose
of hedging its existing portfolio securities or securities the Trust intends to
purchase against fluctuations in value caused by changes in prevailing market
interest rates. Should interest rates move unexpectedly, the Trust may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts, interest rates and
the underlying hedged assets. The Trust is also at the risk of not being able to
enter into a closing transaction for the futures contract because of an illiquid
secondary market. In addition, since futures are used to shorten or lengthen a
portfolio's duration, there is a risk that the portfolio may have temporarily
performed better without the hedge or that the Trust may lose the opportunity to
realize appreciation in the market price of the underlying positions.

SHORT SALES: The Trust may make short sales of securities as a method of hedging
potential price declines in similar securities owned. When the Trust makes a
short sale, it may borrow the security sold short and deliver it to the
broker-dealer through which it made the short sale as collateral for its oblig-

ation to deliver the security upon conclusion of the sale. The Trust may have to
pay a fee to borrow the particular securities and may be obligated to pay over
any payments received on such borrowed securities. A gain, limited to the price
at which the Trust sold the security short, or a loss, unlimited as to dollar
amount, will be recognized upon the termination of a short sale if the market
price is greater or less than the proceeds originally received.

SECURITIES LENDING: The Trust may lend its portfolio securities to qualified
institutions. The loans are secured by collateral at least equal, at all times,
to the market value of the securities loaned. The Trust may bear the risk of
delay in recovery of, or even loss of rights in, the securities loaned should
the borrower of the securities fail financially. The Trust receives compensation
for lending its securities in the form of interest on the loan. The Trust also
continues to receive interest on the securities loaned, and any gain or loss in
the market price of the securities loaned that may occur during the term of the
loan will be for the account of the Trust.

INTEREST RATE CAPS: Interest rate caps are similar to interest rate swaps,
except that one party agrees to pay a fee, while the other party pays the
excess, if any, of a floating rate over a specified fixed or floating rate.

Interest rate caps are intended to both manage the duration of the Trust's
portfolio and its exposure to changes in short term rates. Owning interest rate
caps reduces the portfolio's duration, making it less sensitive to changes in
interest rates from a market value perspective. The effect on income involves
protection from rising short term rates, which the Trust experiences primarily
in the form of leverage.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the interest rate cap. However, the Trust does not anticipate
non-performance by any counterparty.

Transactions fees paid or received by the Trust are recognized as assets or
liabilities and amortized or accreted into interest expense or income over the
life of the interest rate cap. The asset or liability is subsequently adjusted
to the current market value of the interest rate cap purchased or sold. Changes
in the value of the interest rate cap are recognized as unrealized gains and
losses.

INTEREST RATE FLOORS: Interest rate floors are similar to interest rate swaps,
except that one party agrees to pay a fee, while the other party pays the
excess, if any, of a floating rate under a specified fixed or floating rate.

Interest rate floors are used by the Trust to both manage the duration of the
portfolio and its exposure to changes in short-term interest rates. Selling
interest rate floors reduces the portfolio's duration, making it less sensitive
to changes in interest rates from a market value perspective. The Trust's
leverage provides extra income in a period of falling rates. Selling floors
reduces some of that advantage by partially monetizing it as an up front payment
which the Trust receives.

The Trust is exposed to credit loss in the event of non-performance by the
other party to the interest rate floor. However, the Trust does not anticipate
non-performance by any counterparty.

Transactions fees paid or received by the Trust are recognized as assets or
liabilities and amortized or accreted into interest expense or income over the
life of the interest rate floor. The asset or liability is subsequently adjusted
to the current market value of the interest rate floor purchased or sold.
Changes in the value of the interest rate floor are recognized as unrealized
gains and losses.

SECURITIES TRANSACTIONS AND NET INVESTMENT INCOME: Securities transactions are
recorded on the trade date. Realized and unrealized gains and losses are
calculated on the identified cost basis. Interest income is recorded on the
accrual basis, and the Trust accretes discount and amortizes premium on
securities purchased using the interest method.

FEDERAL INCOME TAXES: It is the Trust's intention to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute sufficient amounts of its taxable income to
shareholders. Therefore, no federal income tax provision is required.

DIVIDENDS AND DISTRIBUTIONS: The Trust declares and pays dividends and
distributions monthly; first from net investment income, then from realized
short-term capital gains and other sources, if necessary. Net long-term capital
gains, if any, in excess of loss carryforwards are distributed at least
annually. Dividends and distributions are recorded on the ex-dividend date.

Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from accounting
principles generally accepted in the United States of America.

ESTIMATES: The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

DEFERRED COMPENSATION PLAN: Under a deferred compensation plan approved by the
Board of Directors on February 24, 2000,

non-interested Directors may elect to defer receipt of all, or a portion of
their annual compensation.

Deferred amounts earn a return as though equivalent dollar amounts had been
invested in common shares of other BlackRock funds selected by the Directors.
This has the same economic effect as if the Directors had invested the deferred
amounts in such other BlackRock funds.

The deferred compensation plan is not funded and obligations thereunder
represent general unsecured claims against the general assets of the Trust. The
Trust may, however, elect to invest in common shares of those funds selected by
the Directors in order to match its deferred compensation obligations.

RECLASSIFICATION OF CAPITAL ACCOUNTS: The Trust accounts for and reports
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants' Statement of Position 93-2:Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment Companies. The effect of applying
this statement was to decrease accumulated net realized loss on investments by
$3,303,567 and decrease paid-in capital by $3,303,567 due to the expiration of a
portion of the capital loss carryforward and other book to tax differences. Net
investment income, net realized gains and net assets were not affected by this
change.

NOTE 2. AGREEMENTS

The Trust has an Investment Advisory Agreement with BlackRock Advisors, Inc.
(the "Advisor"), which is a wholly-owned subsidiary of BlackRock, Inc., which in
turn is an indirect, majority-owned subsidiary of PNC Financial Services Group,
Inc. The Trust has an Administration Agreement with Prudential Investments Fund
Management LLC ("PIFM"), an indirect, wholly-owned subsidiary of The Prudential
Insurance Co. of America. Effective November 1, 2001, PIFM changed its name to
Prudential Investments LLC.

The investment advisory fee paid to the Advisor is computed weekly and
payable monthly at an annual rate of 0.65% of the Trust's average weekly net
assets. The administration fee paid to PIFM is also computed weekly and payable
monthly at an annual rate of 0.20% of the first $500 million of the Trust's
average weekly net assets and 0.15% of any excess.

Pursuant to the agreements, the Advisor provides continuous supervision of
the investment portfolio and pays the compensation of officers of the Trust who
are affiliated persons of the Advisor. PIFM pays occupancy and certain clerical
and accounting costs of the Trust. The Trust bears all other costs and expenses.

NOTE 3. PORTFOLIO
SECURITIES

Purchases and sales of investment securities, other than short-term investments
and dollar rolls, for the year ended October 31, 2001 aggregated $329,978,572
and $196,512,017, respectively.

The Trust may invest without limit in securities which are not readily
marketable, including those which are restricted as to disposition under
securities law ("restricted securities"). At October 31, 2001, the Trust held
3.7% of its net assets in securities restricted as to resale.

The Trust may from time to time purchase in the secondary market certain
mortgage pass-through securities packaged or master serviced by PNC Mortgage
Securities Corp. (or Sears Mortgage if PNC Mortgage Securities Corp. succeeded
to rights and duties of Sears) or mortgage related securities containing loans
or mortgages originated by PNC Bank or its affiliates, including Midland Loan
Services, Inc. It is possible under certain circumstances, that PNC Mortgage
Securities Corp. or its affiliates, including Midland Loan Services, Inc. could
have interests that are in conflict with the holders of these mortgage-backed
securities, and such holders could have rights against PNC Mortgage Securities
Corp. or its affiliates, including Midland Loan Services, Inc.

The federal income tax basis of the Trust's investments at October 31, 2001
was $568,380,764 and, accordingly, net unrealized appreciation for federal
income tax purposes was $53,435,163 (gross unrealized appreciation $80,459,182;
gross unrealized depreciation $27,024,019).

For federal income tax purposes, the Trust has a capital loss carryforward at
October 31, 2001 of approximately $114,560,600 of which approximately
$23,358,000 will expire in 2002, approximately $15,428,300 will expire in 2003,
approximately $27,373,200 will expire in 2004, approximately $33,108,000 will
expire in 2007, approximately $1,352,200 will expire in 2008 and approximately
$13,940,900 will expire in 2009. During the fiscal year ended October 31, 2001,
approximately $3,440,300 expired unused. Accordingly, no capital gains
distribution is expected to be paid to shareholders until net gains have been
realized in excess of such amounts.

The Trust holds four interest rate caps. Under all agreements, the Trust
receives the excess, if any, of a floating rate over a fixed rate. The Trust
paid a transaction fee for each cap. Transaction fees are amortized through the
termination of the agreement. Details of the caps at October 31, 2001 are as
follows:

NOTIONAL VALUE AT
AMOUNT FIXED FLOATING TERMINATION AMORTIZED OCTOBER 31, UNREALIZED
(000) RATE RATE DATE COST 2001 DEPRECIATION
------- ------ -------- ------------ --------- ---------- ------------
$ 50,000 6.00% 3 mth. LIBOR 2/19/02 $ 97,109 $ 5 $ (97,104)
100,000 6.50% 3 mth. LIBOR 4/4/02 302,772 10 (302,762)
100,000 7.25% 3 mth. LIBOR 4/23/03 707,813 10 (707,803)
100,000 7.75% 3 mth. LIBOR 5/4/03 381,255 2,310 (378,945)
---------- -------- -----------
$1,488,949 $ 2,335 $(1,486,614)
========== ======== ===========

The Trust holds one interest rate floor. Under the agreement, the Trust pays
the excess, if any, of a fixed rate over a floating rate. The Trust received a
transaction fee for the floor. Transaction fee is amortized through the
termination of the agreement. Details of the interest rate floor held at October
31, 2001 are as follows:

NOTIONAL VALUE AT
AMOUNT FIXED FLOATING TERMINATION AMORTIZED OCTOBER 31, UNREALIZED
(000) RATE RATE DATE COST 2001 DEPRECIATION
------- ----- ---------- ------------ --------- ---------- ------------
$77,000 6.00% 1mth. LIBOR 1/25/05 $(1,132,875) $(3,646,864) $(2,513,989)
========= =========== ===========

Details of open interest rate swaps at October 31, 2001 are as follows:

NOTIONAL UNREALIZED
AMOUNT FIXED FLOATING TERMINATION APPRECIATION
(000) RATE RATE DATE (DEPRECIATION)
-------- ----- ------ ---------- ----------
$ 28,000 4.88%(a) 3 mth. LIBOR 5/22/03 $ (952,227)
72,000 5.54%(b) 3 mth. LIBOR 5/1/04 2,880,000
24,000 5.71%(b) 3 mth. LIBOR 5/22/06 1,621,015
100,000 6.85%(b) 6 mth. LIBOR 9/6/02 3,863,191
50,000 6.95%(a) 6 mth. LIBOR 9/6/10 (7,772,365)
100,000 7.20%(b) 6 mth. LIBOR 6/16/02 3,003,276
20,000 7.50%(a) 1 mth. LIBOR 4/25/02 (463,366)
----------
$2,179,524
==========

-------------
(a) Trust receives floating interest rate and pays fixed rate.
(b) Trust pays floating interest rate and receives fixed rate.

NOTE 4. BORROWINGS

REVERSE REPURCHASE AGREEMENTS: The Trust may enter into reverse repurchase
agreements with qualified, third party broker-dealers as determined by and under
the direction of the Trust's Board of Directors. Interest on the value of
reverse repurchase agreements issued and outstanding is based upon competitive
market rates at the time of issuance. At the time the Trust enters into a
reverse repurchase agreement, it establishes and maintains a segregated account
with the lender containing liquid investment grade securities having a value not
less than the repurchase price, including accrued interest, of the reverse
repurchase agreement.

The average daily balance of reverse repurchase agreements outstanding during
the year ended October 31, 2001 was approximately $148,203,645 at a weighted
average interest rate of approximately 4.78%. The maximum amount of reverse
repurchase agreements outstanding at any month-end during the period was
$210,995,500 as of February 28, 2001, which was 30.26% of total assets.

DOLLAR ROLLS: The Trust may enter into dollar rolls in which the Trust sells
securities for delivery in the current month and simultaneously contracts to
repurchase substantially similar (same type, coupon and maturity) securities on
a specified future date. During the roll period the Trust forgoes principal and
interest paid on the securities. The Trust will be compensated by the interest
earned on the cash proceeds of the initial sale and by the lower repurchase
price at the future date.

The Trust did not enter into any dollar roll transactions during the year
ended October 31, 2001.

NOTE 5. CAPITAL

There are 200 million shares of $.01 par value common stock authorized. Of the
62,849,878 shares outstanding at October 31, 2001, the Advisor owned 10,753
shares.

NOTE 6. DIVIDENDS

Subsequent to October 31, 2001, the Board of Directors of the Trust declared
dividends from undistributed earnings of $0.046875 per share payable November
30, 2001 to shareholders of record on November 15, 2001.

NOTE 7. COMMITMENT

On October 9, 1997, the Trust entered into a commitment to purchase an aggregate
of up to $20,000,000 of Overseas Private Investment Corp. securities prior to
the commitment expiration on September 30, 2003. To date, the Trust has
purchased such securities with a market value of $8,987,751 at October 31, 2001.

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
REPORT OF INDEPENDENT AUDITORS
--------------------------------------------------------------------------------

To the Shareholders and Board of Directors of
The BlackRock Income Trust Inc.:

We have audited the accompanying statement of assets and liabilities of The
BlackRock Income Trust Inc. (the "Trust"), including the portfolio of
investments, as of October 31, 2001, and the related statements of operations
and cash flows for the year then ended, the statements of changes in net assets
for each of the two years in the period then ended, and the financial highlights
for each of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 2001, by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
BlackRock Income Trust Inc. as of October 31, 2001, the results of its
operations and its cash flows for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in conformity
with accounting principles generally accepted in the United States of America.

/s/ DELOITTE & TOUCHE LLP
-------------------------
Boston, Massachusetts
December 7, 2001

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
TAX INFORMATION
--------------------------------------------------------------------------------

We wish to advise you as to the federal tax status of dividends paid by the
Trust during its fiscal year ended October 31, 2001.

During the fiscal year ended October 31, 2001, the Trust paid dividends of
$0.5625 per share from net investment income. For federal income tax purposes,
the dividends you received are reportable in your 2001 federal income tax return
as ordinary income. Further, we wish to advise you that your income dividends do
not qualify for the dividends received deduction.

For the purpose of preparing your 2001 annual federal income tax return,
however, you should report the amounts as reflected on the appropriate Form 1099
DIV which will be mailed to you in January 2002.

--------------------------------------------------------------------------------
DIVIDEND REINVESTMENT PLAN
--------------------------------------------------------------------------------

Pursuant to the Trust's Dividend Reinvestment Plan (the "Plan"),
shareholders may elect to have all distributions of dividends and capital gains
reinvested by EquiServe Trust Company, N.A. (the "Plan Agent") in Trust shares
pursuant to the Plan. Shareholders who do not participate in the Plan will
receive all distributions in cash paid by check in United States dollars mailed
directly to the shareholders of record (or if the shares are held in street or
other nominee name, then to the nominee) by the transfer agent, as dividend
disbursing agent.

The Plan Agent serves as agent for the shareholders in administering the
Plan. After the Trust declares a dividend or determines to make a capital gain
distribution, the Plan Agent will acquire shares for the participants' accounts,
depending upon the circumstances described below, either (i) through receipt of
unissued but authorized shares from the Trust ("newly issued shares") or (ii) by
purchase of outstanding shares on the open market, on the New York Stock
Exchange or elsewhere ("open-market purchases"). If, on the dividend payment
date, the net asset value per share is equal to or less than the market price
per share plus estimated brokerage commissions (such condition being referred to
herein as "market premium"), the transfer agent will invest the dividend amount
in newly issued shares on behalf of the participants. The number of newly issued
shares to be credited to each participant's account will be determined by
dividing the dollar amount of the dividend by the net asset value per share (but
in no event less than 95% of the then current market price per share) on the
date the shares are issued. If, on the dividend payment date, the net asset
value per share is greater than the market value per share (such condition being
referred to herein as "market discount"), the transfer agent will invest the
dividend amount in shares acquired on behalf of the participants in open-market
purchases.

Participants in the Plan may withdraw from the Plan upon written notice to
the Plan Agent and will receive certificates for whole Trust shares and a cash
payment will be made for any fraction of a Trust share.

The Plan Agent's fees for the handling of the reinvestment of dividends
and distributions will be paid by the Trust. However, each participant will pay
a pro rata share of brokerage commissions incurred with respect to the Plan
Agent's open market purchases in connection with the reinvestment of dividends
and distributions. The automatic reinvestment of dividends and distributions
will not relieve participants of any federal, state or local income taxes that
may be payable on such dividends or distributions.

The Trust reserves the right to amend or terminate the Plan as applied to
any dividend or distribution paid subsequent to written notice of the change
sent to all shareholders of the Trust at least 90 days before the record date
for the dividend or distribution. The Plan also may be amended or terminated by
the Plan Agent upon at least 90 days' written notice to all shareholders of the
Trust. All correspondence concerning the Plan should be directed to the Plan
Agent at (800) 699-1BFM. The addresses are on the front of this report.

--------------------------------------------------------------------------------
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------

There have been no material changes in the Trust's investment objectives
or policies that have not been approved by the shareholders or to its charter or
by-laws or in the principal risk factors associated with investment in the
Trust. There have been no changes in the persons who are primarily responsible
for the day-to-day management of the Trust's portfolio.

Quarterly performance and other information regarding the Trust may be
found on BlackRock's website, which can be accessed at
http://www.blackrock.com/funds/cefunds.html. This reference to BlackRock's
website is intended to allow investors public access to quarterly information
regarding the Trust and is not intended to incorporate BlackRock's website into
this report.

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
INVESTMENT SUMMARY
--------------------------------------------------------------------------------

THE TRUST'S INVESTMENT OBJECTIVE

The BlackRock Income Trust's investment objective is to manage a portfolio of
high quality securities to maintain high monthly income consistent with
preservation of capital. The Trust will seek to distribute monthly income that
is greater than that obtainable on an annualized basis by investment in United
States Treasury securities having the same maturity as the average dollar
weighted maturity of the Trust's investments.

WHO MANAGES THE TRUST?

BlackRock Advisors, Inc. (the "Advisor") manages the Trust. The Advisor is
a wholly-owned subsidiary of BlackRock, Inc. ("BlackRock"), which is one of the
largest publicly traded investment management firms in the United States with
$226 billion of assets under management as of September 30, 2001. BlackRock
manages assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide through a variety of equity, fixed income, liquidity and alternative
investment separate accounts and mutual funds, including BLACKROCK FUNDS and
BLACKROCK PROVIDENT INSTITUTIONAL FUNDS. In addition, BlackRock provides risk
management and investment system services to institutional investors under the
BLACKROCK SOLUTIONS name. Clients are served from the company's headquarters in
New York City, as well as offices in Wilmington, DE, San Francisco, Edinburgh,
Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a member of The PNC
Financial Services Group, Inc. (NYSE: PNC), one of the largest diversified
financial services organizations in the United States, and is majority-owned by
PNC and by BlackRock employees.

WHAT CAN THE TRUST INVEST IN?

The Trust will invest at least 65% of its assets in mortgage-backed securities.
At least 85% of the Trust's assets must be rated at least "AAA" by Standard &
Poor's or "Aaa" by Moody's at the time of purchase (up to 5% can be unrated but
deemed by the Advisor to be of comparable quality). Additionally, 15% of the
Trust's assets can be invested in securities rated at least "AA" by Standard &
Poor's or "Aa" by Moody's at time of purchase. Under current market conditions,
BlackRock expects that the primary investments of the Trust will be U.S.
Government securities, securities backed by government agencies (such as
mortgage-backed securities), privately issued mortgage-backed securities,
commercial mortgage-backed securities and asset-backed securities.

WHAT IS THE ADVISOR'S INVESTMENT STRATEGY?

The Advisor will seek to meet the Trust's investment objective by managing the
assets of the Trust so as to provide high monthly income consistent with the
preservation of capital. The Trust will seek to provide monthly income that is
greater than that which could be obtained by investing in U .S. Treasury
securities with an average life similar to that of the Trust's assets. Under
current market conditions, the average life of the Trust's assets is expected to
be in the range of seven to ten years. Under other market conditions, the
Trust's average life may vary and may not be predictable using any formula. In
seeking the investment objective, the Advisor may actively manage among various
types of securities in different interest rate environments.

Traditional mortgage pass-through securities make interest and principal
payments on a monthly basis and can be a source of attractive levels of income
to the Trust. While mortgage-backed securities in the Trust are of high credit
quality, they typically offer a yield spread above Treasuries due to the
uncertainty of the timing of their cash flows as they are subject to changes in
the rate of prepayments when interest rates change and either a larger or
smaller proportion of mortgage holders refinance their mortgages or move. While
mortgage-backed securities offer the opportunity for attractive yields, they
subject a portfolio to interest rate risk and prepayment exposure which result
in reinvestment risk when prepaid principal must be reinvested.

Multiple-class mortgage pass-through securities, or collateralized mortgage
obligations (CMOs), are also an investment that may be used in the Trust's
portfolio. These securities are issued in multiple classes each of which has a
different coupon rate, stated maturity and prioritization on the timing of
receipt of cash flows coming from interest and principal payments on the
underlying mortgages. Principal prepayments can be allocated among the different
classes of a CMO in a number of ways; for instance, they can be applied to each
of the classes in the order of their respective stated maturities. This feature
allows an investor to better plan the average life of their investment.

Additionally, in order to protect the portfolio from interest rate risk, the
Advisor will attempt to locate securities with call protection, such as
commercial mortgage-backed securities with prepayment penalties or lockouts.
Securities with call protection should provide the portfolio with some degree of
protection against reinvestment risk during times of lower prevailing interest
rates.

HOW ARE THE TRUST'S SHARES PURCHASED AND SOLD? DOES THE TRUST PAY DIVIDENDS
REGULARLY?

The Trust's shares are traded on the New York Stock Exchange which provides
investors with liquidity on a daily basis. Orders to buy or sell shares of the
Trust must be placed through a registered broker or financial advisor. The Trust
pays monthly dividends which are typically paid on the last business day of the
month. For shares held in the shareholder's name, dividends may be reinvested in
additional shares of the Trust through the Trust's transfer agent, EquiServe
Trust Company, N.A. Investors who wish to hold shares in a brokerage account
should check with their financial advisor to determine whether their brokerage
firm offers dividend reinvestment services.

LEVERAGE CONSIDERATIONS IN THE TRUST

Under current market conditions, leverage increases the income earned by the
Trust. The Trust employs leverage primarily through the use of reverse
repurchase agreements and dollar rolls. Leverage permits the Trust to borrow
money at short-term rates and reinvest that money in longer-term assets which
typically offer higher interest rates. The difference between the cost of the
borrowed funds and the income earned on the proceeds that are invested in
longer-term assets is the benefit to the Trust from leverage. In general, the
portfolio is typically leveraged at approximately 331/3% of total assets.

Leverage also increases the duration (or price volatility of the net assets) of
the Trust, which can improve the performance of the Trust in a declining rate
environment, but can cause net assets to decline faster than the market in a
rapidly rising rate environment. The Advisor's portfolio managers continuously
monitor and regularly review the Trust's use of leverage and the Trust may
reduce, or unwind, the amount of leverage employed should the Advisor consider
that reduction to be in the best interests of the shareholders.

SPECIAL CONSIDERATIONS AND RISK FACTORS RELEVANT TO THE TRUST

THE TRUST IS INTENDED TO BE A LONG-TERM INVESTMENT AND IS NOT A SHORT-TERM
TRADING VEHICLE.

INVESTMENT OBJECTIVE. Although the objective of the Trust is to provide high
monthly income consistent with preservation of capital, there can be no
assurance that this objective will be achieved.

DIVIDEND CONSIDERATIONS. Dividends paid by the Trust are likely to vary over
time as fixed income market conditions change. Future dividends may be higher or
lower than the dividend the Trust is currently paying.

INTEREST-ONLY SECURITIES (IO). The yield to maturity on an IO class is extremely
sensitive to the rate of principal payments (including prepayments) on the
related underlying Mortgage Assets, and a rapid rate of principal payments may
have a material adverse effect on such security's yield to maturity. If the
underlying Mortgage Assets experience greater than anticipated prepayments of
principal, the Trust may fail to recoup fully its initial investment in these
securities even if the securities are rated AAA by S&P or Aaa by Moody's.

INVERSE FLOATING RATE MORTGAGE-BACKED SECURITIES. ARMs with interest rates that
adjust at periodic intervals in the opposite direction from the market rate of
interest to which they are indexed. An inverse floater may be considered to be
leveraged to the extent that its interest rate may vary by a magnitude that
exceeds the magnitude of the change in the index rate of interest.

LEVERAGE. The Trust utilizes leverage through reverse repurchase agreements and
dollar rolls, which involves special risks. The Trust's net asset value and
market value may be more volatile due to its use of leverage.

MARKET PRICE OF SHARES. The shares of closed-end investment companies such as
the Trust trade on the New York Stock Exchange (NYSE symbol: BKT) and as such
are subject to supply and demand influences. As a result, shares may trade at a
discount or a premium to their net asset value.

MORTGAGE-BACKED AND ASSET-BACKED SECURITIES. The cash flow and yield
characteristics of these securities differ from traditional debt securities. The
major differences typically include more frequent payments and the possibility
of prepayments which will change the yield to maturity of the security.

CORPORATE DEBT SECURITIES. The value of corporate debt securities generally
varies inversely with changes in prevailing market interest rates. The Trust may
be subject to certain reinvestment risks in environments of declining interest
rates.

ZERO COUPON SECURITIES. Such securities receive no cash flows prior to maturity;
therefore, interim price movement on the securities are generally more sensitive
to interest rate movements then securities that make periodic coupon payments.

ILLIQUID SECURITIES. The Trust may invest in securities that are illiquid,
although under current market conditions the Trust expects to do so to only a
limited extent. These securities involve special risks.

ANTITAKEOVER PROVISIONS. Certain antitakeover provisions will make a change in
the Trust's business or management more difficult without the approval of the
Trust's Board of Directors and may have the effect of depriving shareholders of
an opportunity to sell their shares at a premium above the prevailing market
price.

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
GLOSSARY
--------------------------------------------------------------------------------

ADJUSTABLE RATE MORTGAGE-
BACKED SECURITIES (ARMS): Mortgage instruments with interest rates that
adjust at periodic intervals at a fixed amount
over the market levels of interest rates as
reflected in specified indexes. ARMS are backed by
mortgage loans secured by real property.

ASSET-BACKED SECURITIES: Securities backed by various types of receivables
such as automobile and credit card receivables.

CLOSED-END FUND: Investment vehicle which initially offers a fixed
number of shares and trades on a stock exchange.
The fund invests in a portfolio of securities in
accordance with its stated investment objectives
and policies.

COLLATERALIZED MORTGAGE
OBLIGATIONS (CMOS): Mortgage-backed securities which separate mortgage
pools into short-, medium-, and long-term
securities with different priorities for receipt
of principal and interest. Each class is paid a
fixed or floating rate of interest at regular
intervals. Also known as multiple-class mortgage
pass-throughs.

COMMERCIAL MORTGAGE
BACKED SECURITIES (CMBS): Mortgage-backed securities secured or backed by
mortgage loans on commercial properties.

DISCOUNT: When a fund's net asset value is greater than its
stock price the fund is said to be trading at a
discount.

DIVIDEND: Income generated by securities in a portfolio and
distributed to shareholders after the deduction of
expenses. This Trust declares and pays dividends
on a monthly basis.

DIVIDEND REINVESTMENT: Shareholders may elect to have all dividends and
distributions of capital gains automatically
reinvested into additional shares of the Trust.

FHA: Federal Housing Administration, a government
agency that facilitates a secondary mortgage
market by providing an agency that guarantees
timely payment of interest and principal on
mortgages.

FHLMC: Federal Home Loan Mortgage Corporation, a publicly
owned, federally chartered corporation that
facilitates a secondary mortgage market by
purchasing mortgages from lenders such as savings
institutions and reselling them to investors by
means of mortgage-backed securities. Obligations
of FHLMC are not guaranteed by the U.S.
Government, however; they are backed by FHLMC's
authority to borrow from the U.S. Government. Also
known as Freddie Mac.

FNMA: Federal National Mortgage Administration, a
publicly owned, federally chartered corporation
that facilitates a secondary mortgage market by
purchasing mortgages from lenders such as savings
institutions and reselling them to investors by
means of mortgage-backed securities. Obligations
of FNMA are not guaranteed by the U.S. Government,
however; they are backed by FNMA's authority to
borrow from the U.S. Government. Also known as
Fannie Mae.

GNMA: Government National Mortgage Association, a U.S.
Government agency that facilitates a secondary
mortgage market by providing an agency that
guarantees timely payment of interest and
principal on mortgages. GNMA's obligations are
supported by the full faith and credit of the U.S.
Treasury. Also known as Ginnie Mae.

GOVERNMENT SECURITIES: Securities issued or guaranteed by the U.S.
Government, or one of its agencies or
instrumentalities, such as GNMA, FNMA and FHLMC.

INTEREST-ONLY SECURITIES: Mortgage securities including CMBS that receive
only the interest cash flows from an underlying
pool of mortgage loans or underlying pass-through
securities. Also known as a strip.

INVERSE-FLOATING
RATE MORTGAGE: Mortgage instruments with coupons that adjust at
periodic intervals according to a formula which
sets inversely with a market level interest rate
index.

MARKET PRICE: Price per share of a security trading in the
secondary market. For a closed-end fund, this is
the price at which one share of the fund trades on
the stock exchange. If you were to buy or sell
shares, you would pay or receive the market price.

MORTGAGE DOLLAR ROLLS: A mortgage dollar roll is a transaction in which
the Trust sells mortgage-backed securities for
delivery in the current month and simultaneously
contracts to repurchase substantially similar
(although not the same) securities on a specified
future date. During the "roll" period, the Trust
does not receive principal and interest payments
on the securities, but is compensated for giving
up these payments by the difference in the current
sales price (for which the security is sold) and
lower price that the Trust pays for the similar
security at the end date as well as the interest
earned on the cash proceeds of the initial sale.

MORTGAGE PASS-THROUGHS:
NET ASSET VALUE (NAV): Mortgage-backed securities issued by Fannie Mae,
Freddie Mac or Ginnie Mae. Net asset value is the
total market value of all securities and other
assets held by the Trust, plus income accrued on
its investments, minus any liabilities including
accrued expenses, divided by the total number of
outstanding shares. It is the underlying value of
a single share on a given day. Net asset value for
the Trust is calculated weekly and published in
BARRON'S on Saturday and THE WALL STREET JOURNAL
on Monday.

PRINCIPAL-ONLY SECURITIES: Mortgage securities that receive only the
principal cash flows from an underlying pool of
mortgage loans or underlying pass-through
securities. Also known as strips.

PROJECT LOANS: Mortgages for multi-family, low- to middle-income
housing.

PREMIUM: When a fund's stock price is greater than its net
asset value, the fund is said to be trading at a
premium.

REMIC: A real estate mortgage investment conduit is a
multiple-class security backed by mortgage-backed
securities or whole mortgage loans and formed as a
trust, corporation, partnership, or segregated
pool of assets that elects to be treated as a
REMIC for federal tax purposes. Generally, FNMA
REMICs are formed as trusts and are backed by
mortgage-backed securities.

RESIDUALS: Securities issued in connection with
collateralized mortgage obligations that generally
represent the excess cash flow from the mortgage
assets underlying the CMO after payment of
principal and interest on the other CMO securities
and related administrative expenses.

REVERSE REPURCHASE
AGREEMENTS: In a reverse repurchase agreement, the Trust sells
securities and agrees to repurchase them at a
mutually agreed date and price. During this time,
the Trust continues to receive the principal and
interest payments from that security. At the end
of the term, the Trust receives the same
securities that were sold for the same initial
dollar amount plus interest on the cash proceeds
of the initial sale.

STRIPPED MORTGAGE-BACKED
SECURITIES: Arrangements in which a pool of assets is
separated into two classes that receive different
proportions of the interest and principal
distributions from underlying mortgage-backed
securities. IO's and PO's are examples of strips.

--------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
SUMMARY OF CLOSED-END FUNDS
--------------------------------------------------------------------------------

TAXABLE TRUSTS
--------------------------------------------------------------------------------

STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ -----

The BlackRock Income Trust Inc. BKT N/A
The BlackRock North American Government Income Trust Inc. BNA N/A
The BlackRock High Yield Trust BHY N/A
BlackRock Core Bond Trust BHK N/A

TERM TRUSTS
The BlackRock Strategic Term Trust Inc. BGT 12/02
The BlackRock Investment Quality Term Trust Inc. BQT 12/04
The BlackRock Advantage Term Trust Inc. BAT 12/05
The BlackRock Broad Investment Grade 2009 Term Trust Inc. BCT 12/09

TAX-EXEMPT TRUSTS
----------------------------------------------------------------------------------------------------

STOCK MATURITY
PERPETUAL TRUSTS SYMBOL DATE
------ -----

The BlackRock Investment Quality Municipal Trust Inc. BKN N/A
The BlackRock California Investment Quality Municipal Trust Inc. RAA N/A
The BlackRock Florida Investment Quality Municipal Trust RFA N/A
The BlackRock New Jersey Investment Quality Municipal Trust Inc. RNJ N/A
The BlackRock New York Investment Quality Municipal Trust Inc. RNY N/A
The Blackrock Pennsylvania Strategic Municipal Trust BPS N/A
The Blackrock Strategic Municipal Trust BSD N/A
BlackRock California Municipal Income Trust BFZ N/A
BlackRock Municipal Income Trust BFK N/A
BlackRock New York Municipal Income Trust BNY N/A
BlackRock New Jersey Municipal Income Trust BNJ N/A
BlackRock Florida Municipal Income Trust BBF N/A

TERM TRUSTS
The BlackRock Municipal Target Term Trust Inc. BMN 12/06
The BlackRock Insured Municipal 2008 Term Trust Inc. BRM 12/08
The BlackRock California Insured Municipal 2008 Term Trust Inc. BFC 12/08
The BlackRock Florida Insured Municipal 2008 Term Trust BRF 12/08
The BlackRock New York Insured Municipal 2008 Term Trust Inc. BLN 12/08
The BlackRock Insured Municipal Term Trust Inc. BMT 12/10
BlackRock California Municipal 2018 Term Trust BJZ 12/18
BlackRock New York Municipal 2018 Term Trust BLH 12/18
BlackRock Municipal 2018 Term Trust BPK 12/18

IF YOU WOULD LIKE FURTHER INFORMATION PLEASE DO NOT HESITATE TO CALL BLACKROCK
AT (800) 227-7BFM (7236) OR CONSULT WITH YOUR FINANCIAL ADVISOR.

--------------------------------------------------------------------------------
BLACKROCK ADVISORS, INC.
AN OVERVIEW
--------------------------------------------------------------------------------

BlackRock Advisors, Inc. (the "Advisor") manages the Trust. The Advisor is
a wholly-owned subsidiary of BlackRock, Inc. ("BlackRock"), which is one of the
largest publicly traded investment management firms in the United States with
$226 billion of assets under management as of September 30, 2001. BlackRock
manages assets on behalf of more than 3,300 institutions and 200,000 individuals
worldwide through a variety of equity, fixed income, liquidity and alternative
investment separate accounts and mutual funds, including BLACKROCK FUNDS and
BLACKROCK PROVIDENT INSTITUTIONAL FUNDS. In addition, BlackRock provides risk
management and investment system services to institutional investors under the
BLACKROCK SOLUTIONS name. Clients are served from the company's headquarters in
New York City, as well as offices in Wilmington, DE, San Francisco, Edinburgh,
Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a member of The PNC
Financial Services Group (NYSE: PNC), one of the largest diversified financial
services organizations in the United States, and is majority-owned by PNC and by
BlackRock employees.

BlackRock's fixed income product was introduced in 1988 by a team of
highly seasoned fixed income professionals. These professionals had extensive
experience creating, analyzing and trading a variety of fixed income
instruments, including the most complex structured securities. In fact, several
individuals at BlackRock were responsible for developing many of the major
innovations in the mortgage-backed and asset-backed securities markets,
including the creation of the first CMO, the floating rate CMO, the
senior/subordinated pass-through and the multi-class asset-backed security.

BlackRock is unique among asset management and advisory firms in the
emphasis it places on the development of proprietary analytical capabilities.
Over one quarter of the firm's professionals are dedicated to the design,
maintenance and use of these systems, which are not otherwise available to
investors. BlackRock's proprietary analytical tools are used for evaluating, and
designing fixed income investment strategies for client portfolios. Securities
purchased include mortgages, corporate bonds, municipal bonds and a variety of
hedging instruments.

BlackRock has developed investment products that respond to investors'
needs and has been responsible for several major innovations in closed-end
funds. In fact, BlackRock introduced the first closed-end mortgage fund, the
first taxable and tax-exempt closed-end funds to offer a finite term, the first
closed-end fund to achieve a AAA rating by Standard & Poor's, and the first
closed-end fund to invest primarily in North American Government securities.
Currently, BlackRock's closed-end funds have dividend reinvestment plans, which
are designed to provide ongoing demand for the stock in the secondary market.
BlackRock manages a wide range of investment vehicles, each having specific
investment objectives and policies.

In view of our continued desire to provide a high level of service to all
our shareholders, BlackRock maintains a toll-free number for your questions. The
number is (800) 227-7BFM (7236). We encourage you to call us with any questions
that you may have about your BlackRock funds and we thank you for the continued
trust that you place in our abilities.

IF YOU WOULD LIKE FURTHER INFORMATION
PLEASE DO NOT HESITATE TO CALL BLACKROCK AT (800) 227-7BFM

--------- ---------------------------------
BLACKROCK
--------- ---------------------------------

DIRECTORS
Laurence D. Fink, CHAIRMAN
Andrew F. Brimmer
Richard E. Cavanagh
Kent Dixon
Frank J. Fabozzi
James Clayburn La Force, Jr.
Walter F. Mondale
Ralph L. Schlosstein

OFFICERS THE BLACKROCK
Ralph L. Schlosstein, PRESIDENT INCOME
Robert S. Kapito, VICE PRESIDENT TRUST INC.
Richard M. Shea, VICE PRESIDENT/TAX =========================
Henry Gabbay, TREASURER ANNUAL REPORT
James Kong, ASSISTANT TREASURER OCTOBER 31, 2001
Anne Ackerley, SECRETARY

INVESTMENT ADVISOR
BlackRock Advisors, Inc.
100 Bellevue Parkway
Wilmington, DE 19809
(800) 227-7BFM

ADMINISTRATOR
Prudential Investments LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

CUSTODIAN
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171

TRANSFER AGENT
EquiServe Trust Company, N.A.
150 Royall Street
Canton, MA 02021
(800) 699-1BFM

INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116

LEGAL COUNSEL
Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036

LEGAL COUNSEL - INDEPENDENT DIRECTORS
Debevoise & Plimpton
919 Third Avenue
New York, NY 10022

This report is for shareholder information. This is not a prospectus
intended for use in the purchase or sale of any securities.

Statements and other information contained in this report are as dated and
are subject to change.

THE BLACKROCK INCOME TRUST INC.
c/o Prudential Investments LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 227-7BFM
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