<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>c20342_n30d.txt
<DESCRIPTION>SEMI ANNUAL REPORT
<TEXT>

--------------------------------------------------------------------------------
                         THE BLACKROCK INCOME TRUST INC.
                       SEMI-ANNUAL REPORT TO SHAREHOLDERS
                          REPORT OF INVESTMENT ADVISOR
--------------------------------------------------------------------------------


                                                                    May 31, 2001

Dear Shareholder:

      The  semi-annual  period was marked by the  Federal  Reserve's  aggressive
response to the dramatic U.S. led global economic  slowdown.  Economic  weakness
intensified as Gross Domestic Product ("GDP") growth slowed to a pace of 2% from
3% over the six-month  period.  The U.S. slowdown was primarily driven by a near
collapse in corporate  spending and expansion as profits declined,  as well as a
significant  reduction of  inventories.  In the first quarter of 2001,  the U.S.
Treasury  yield curve  steepening of 100 basis points between 2-year and 30-year
Treasuries dominated performance in the fixed income market as the Fed eased the
discount  rate 150 basis points over the quarter and then an additional 50 basis
points in April 2001 to 4.50%.

      Despite the  aggressive  Fed easing of interest rates due to concerns that
economic  activity  may  continue to be  "unacceptably  weak," all high  quality
spread sectors outperformed Treasuries over the period.

      Since March 2000, there has been an equity market decline of approximately
20%. With no immediate stimulus, this decline will place significant reliance on
monetary policy.  Looking  forward,  we believe the revival of profit growth and
continued  robust spending rates by consumers in the face of a negative  savings
rate  may  require  a Fed  funds  rate of 3.5% to  4.0%.  A Fed  that  can  move
aggressively  as inflationary  expectations  move down should continue to foster
increased  risk  tolerances  in the market.  While the direct  beneficiaries  of
declining  inflation  and Treasury  surpluses  should be short and  intermediate
Treasuries,  the longer-term  beneficiary should be the long-end of the Treasury
market,  particularly  15-year to 20-year Treasuries.  We believe investors will
more readily embrace high quality spread assets as substitutes for  intermediate
Treasuries  in the future.  We also believe that the GDP growth rate will remain
far below the 5.0% of 2000, as consumers spend less and save more.

      This semi-annual report contains a summary of market conditions during the
semi-annual  period and a review of portfolio  strategy by your Trust's managers
in addition to the Trust's unaudited financial statements and a detailed list of
the portfolio's holdings.  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



                                       1
<PAGE>

                                                                    May 31, 2001

Dear Shareholder:

     We are  pleased  to  present  the  unaudited  semi-annual  report  for  The
BlackRock  Income  Trust Inc.  ("the  Trust") for the six months ended April 30,
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 Advisor 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 time of
purchase.

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

<TABLE>
<CAPTION>
                                  ----------------------------------------------------------------------
                                       4/30/01       10/31/00       CHANGE       HIGH           LOW
--------------------------------------------------------------------------------------------------------
<S>                                    <C>            <C>            <C>         <C>           <C>
  STOCK PRICE                          $7.00          $6.375         9.80%       $7.29         $6.3125
--------------------------------------------------------------------------------------------------------
  NET ASSET VALUE (NAV)                $7.34          $7.23          1.52%       $7.49         $7.13
--------------------------------------------------------------------------------------------------------
  10-YEAR TREASURY NOTE                 5.34%          5.75%        (7.13)%       5.86%         4.75%
--------------------------------------------------------------------------------------------------------
</TABLE>


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 first part of the period.  This
economic weakness intensified in the beginning of 2001 as GDP growth slowed over
the six-month  period to 2% from 3%.  Increasing  pressure on corporate  profits
restrained  investment  spending,  subsequently  reducing the demand for capital
goods and output.  Despite eroding consumer confidence,  slower economic growth,
mounting  layoffs,  and the  reduction  of over $5  trillion  of wealth from the
decline of the equity  markets  from their early year 2000 highs,  the  consumer
remains  relatively  resilient.  According  to the minutes of the April 18, 2001
Federal Open Market  Committee  meeting,  "Capital  investment  has continued to
soften and the  persistent  erosion in current and  expected  profitability,  in
combination with rising uncertainty about the business outlook,  seems poised to
dampen capital spending going forward.  This potential restraint,  together with
the possible  effects of earlier  reductions in equity wealth on consumption and
the risk of  slower  growth  abroad,  threatens  to keep  the  pace of  economic
activity  unacceptably weak." Over the period, the Federal Reserve  aggressively
lowered the discount rate by a total of 2.00% to bring the current discount rate
to 4.50%. Additionally, at the May meeting, the Fed cut rates by 50 basis points
for the fifth time this year.

     U.S.  Treasury  yields began to regain their  characteristic  slopes in the
beginning of the period  after nearly a year of inversion  caused by $30 billion
of Treasury  buybacks  and  multiple  Federal  Reserve  tightenings.  The 2-year
Treasury  note rallied in response to a slumping  economy and a volatile  equity
market. The markets have been further supported by Fed actions,  which cut rates
by 50 basis points on four occasions over the period. The yield curve at the end
of the period  reflected  expectations  of another 100 basis points of easing by
September.  As of April 30, 2001, the 10-year Treasury was yielding 5.34% versus
5.75% on October 31, 2000.

     For the period,  the LEHMAN  MORTGAGE INDEX returned 3.29% versus 6.22% for
the LEHMAN  AGGREGATE  INDEX.  As yields  trended  down towards the end of 2000,
fundamentals for mortgage pass-throughs  generally  deteriorated.  The 200 basis
points of Federal  Reserve  interest  rate cuts during the period had  important
implications for mortgage valuations.  In the beginning of 2001, the yield curve
was steeper  than it has been in over five  years.  The  semi-annual  period was
marked by increased prepayment risk


                                       2
<PAGE>

and a shift in monetary policy  contributing to increasing  levels of volatility
in the  market.  Mortgage  pass-throughs  failed to match the rally in 2-year to
5-year  Treasuries,  but did manage to outperform  10-year to 30-year government
issues.

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 high monthly income.

     Midway through the fourth  quarter,  the Trust  increased its allocation to
U.S. Government securities.  The increase in U.S. Government securities improved
liquidity to protect the Trust from the volatile market environment. The Trust's
performance  lagged due to its large allocation to  mortgage-backed  securities,
but the manager  believes  this sector will benefit as  investors  begin to seek
yield and the market moves towards less volatility.

     The following chart compares the Trust's current and October 31, 2000 asset
composition:

--------------------------------------------------------------------------------
                                SECTOR BREAKDOWN
--------------------------------------------------------------------------------
 COMPOSITION                                  APRIL 30, 2001    OCTOBER 31, 2000
--------------------------------------------------------------------------------
 Adjustable & Inverse Floating Rate Mortgages       28%                26%
--------------------------------------------------------------------------------
 Interest Only Mortgage-Backed Securities           20%                21%
--------------------------------------------------------------------------------
 U.S. Government Securities                         15%                 7%
--------------------------------------------------------------------------------
 Principal Only Mortgage-Backed Securities          10%                12%
--------------------------------------------------------------------------------
 Agency Multiple Class Mortgage Pass-Throughs        9%                11%
--------------------------------------------------------------------------------
 FHA Project Loans                                   7%                 9%
--------------------------------------------------------------------------------
 Mortgage Pass-Throughs                              6%                 8%
--------------------------------------------------------------------------------
 Commercial Mortgage-Backed Securities               3%                 4%
--------------------------------------------------------------------------------
 Non-Agency Multiple Class Mortgage Pass-Throughs    2%                 2%
--------------------------------------------------------------------------------


                                       3
<PAGE>

     We look  forward to  continuing  to manage  the Trust to  benefit  from the
opportunities  available to investors in the fixed income  markets as well as to
maintain the Trust's ability to meet its investment objective.  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 which 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 and        Managing Director and          Managing Director and
  Portfolio Manager      Chief Investment Officer--       Portfolio Manager
                           Fixed Income



--------------------------------------------------------------------------------
                         THE BLACKROCK INCOME TRUST INC.
--------------------------------------------------------------------------------
  Symbol on New York Stock Exchange:                                BKT
--------------------------------------------------------------------------------
  Initial Offering Date:                                       July 22, 1988
--------------------------------------------------------------------------------
  Closing Stock Price as of 4/30/01:                               $7.00
--------------------------------------------------------------------------------
  Net Asset Value as of 4/30/01:                                   $7.34
--------------------------------------------------------------------------------
  Yield on Closing Stock Price as of 4/30/01 ($7.00)(1):            8.04%
--------------------------------------------------------------------------------
  Current Monthly Distribution per Share(2):                       $0.046875
--------------------------------------------------------------------------------
  Current Annualized Distribution per Share(2):                    $0.562500
--------------------------------------------------------------------------------

(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.


                                       4
<PAGE>


--------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
--------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
APRIL 30, 2001 (UNAUDITED)
--------------------------------------------------------------------------
       PRINCIPAL
        AMOUNT                                                    VALUE
RATING*  (000)             DESCRIPTION                           (NOTE 1)
--------------------------------------------------------------------------

                 LONG-TERM INVESTMENTS--140.3%
                 MORTGAGE PASS-THROUGHS--8.9%
                 Federal Home Loan Mortgage Corp.,
        $  987@    6.50%, 5/01/29-5/01/30 .................   $    978,145
         1,949@    7.50%, 7/01/07-2/01/23 .................      2,005,179
           527@    8.00%, 11/01/15 ........................        546,997
           669@    8.50%, 10/01/06-3/01/08, 15 Year .......        705,909
         1,185@    9.00%, 9/01/20 .........................      1,259,147
                 Federal National Mortgage Association,
         2,615@    5.50%, 12/01/13-2/01/14, 15 Year .......      2,539,618
         7,685@    6.50%, 2/01/26-6/01/29 .................      7,613,917
         5,804@    7.00%, 6/01/26-9/01/29 .................      5,853,916
         5,515     7.50%, 11/01/14-9/01/23,
                     18 Year Multifamily ..................      5,644,385
         2,484@    8.00%, 5/01/08-5/01/22, Multifamily ....      2,593,538
         1,404     9.497%, 6/01/24, Multifamily ...........      1,445,197
            29     9.50%, 1/01/19-6/01/20 .................         30,494
                 Government National Mortgage
                   Association,
           432@    7.00%, 10/15/17 ........................        436,683
         4,727@    7.50%, 8/15/21-12/15/23 ................      4,839,446
         4,100@    8.00%, 10/15/22-2/15/29 ................      4,244,951
            12     8.50%, 2/15/17 .........................         12,606
           341     9.00%, 6/15/18-9/15/21 .................        357,400
                                                              ------------
                                                                41,107,528
                                                              ------------
                 FEDERAL HOUSING ADMINISTRATION--9.8%
         2,962   Beachtree, Series 87430, 10.25%, 6/01/32 .      3,082,700
                 GMAC,
         5,348     Series 33, 7.43%, 9/01/21 ..............      5,318,079
         2,031     Series 46, 7.43%, 3/1/22 ...............      2,012,087
           836     Series 48, 7.43%, 7/1/22 ...............        821,705
         1,187     Series 51, 7.43%, 6/26/01-2/01/23.......      1,169,077
         6,529     Series 56, 7.43%, 11/01/22 .............      6,430,044
         1,119   Merrill, Series 54, 7.43%, 5/15/23 .......      1,114,208
         4,009   Parkside, 7.30%, 2/01/13 .................      4,077,551
           977   Reilly, Series 41, 8.767%, 3/01/20 .......      1,032,459
         2,809   Tuttle Grove, 7.25%, 10/01/35 ............      2,872,843
                 USGI,
         4,081     Polaris, Series 982, 7.43%, 11/01/21 ...      4,012,961
           826     Series 87, 7.43%, 12/01/22 .............        828,932
         3,324     Series 99, 7.43%, 10/01/23 .............      3,347,323
         2,595     Series 6302, 7.43%, 12/01/21 ...........      2,566,973
         6,611     Yorkville, Series 6094, 7.43%, 6/01/21 .      6,520,880
                                                              ------------
                                                                45,207,822
                                                              ------------
                 AGENCY MULTIPLE CLASS MORTGAGE
                 PASS-THROUGHS--12.9%
                 Federal Home Loan Mortgage Corp.,
                   Multiclass Mortgage Participation
                   Certificates,
        13,780@    Series T-11, Class A-9,
                     1/25/28 ..............................     11,081,816
         3,726@    Series 1104, Class 1104-L,
                     6/15/21 ..............................      3,954,490
         1,516@    Series 1347, Class 1347-HC,
                     12/15/21 .............................      1,489,001
           450     Series 1541, Class 1541-T,
                     7/15/23 ..............................        379,610
           633     Series 1559, Class 1559-WA,
                     7/15/22 ..............................        635,114
        13,281@    Series 1584, Class 1584-FB,
                     9/15/23 ..............................     12,863,259
         2,169     Series 1601, Class 1601-SE,
                     10/15/08 .............................      1,968,289
         5,000     Series 1649, Class 1649-S,
                     12/15/08 .............................      4,792,188
         3,248     Series 1896, Class 1896-PA,
                     11/15/23 .............................      2,761,223

<PAGE>

                 Federal National Mortgage Association,
                   REMIC Pass-Through Certificates,
         1,234@    Trust 1988-16, Class 16-B,
                     6/25/18 ..............................      1,327,950
         2,176@    Trust 1990-12, Class 12-G,
                     2/25/20 ..............................      2,059,804
         3,453     Trust 1992-43, Class 43-E,
                     4/25/22 ..............................      3,598,025
         5,000@    Trust 1993-79, Class 79-SE,
                     1/25/22 ..............................      4,431,250
         1,598     Trust 1993-224, Class 224-SD,
                     11/25/23 .............................      1,375,618
         6,797@    Trust 1996-14, Class 14-M,
                     10/25/21 .............................      6,355,289
           471     Trust 1997-43, Class 43-G,
                     4/18/27 ..............................        427,551
                                                              ------------
                                                                59,500,477
                                                              ------------
                 NON-AGENCY MULTIPLE CLASS
                 MORTGAGE PASS-THROUGHS--2.4%
AAA      8,958   Credit Suisse First Boston
                   Mortgage Certificates,
                   Series 2000-1, Class 2A,
                     3/15/15 ..............................      8,755,136
AAA      2,502   Summit Mortgage Trust,
                   Series 2000-1, Class B1,**
                     12/28/12 .............................      2,456,978
                                                              ------------
                                                                11,212,114
                                                              ------------


                       See Notes to Financial Statements.



                                       5
<PAGE>

--------------------------------------------------------------------------
       PRINCIPAL
        AMOUNT                                                    VALUE
RATING*  (000)             DESCRIPTION                           (NOTE 1)
--------------------------------------------------------------------------
                 ADJUSTABLE & INVERSE FLOATING
                 RATE MORTGAGES--38.3%
                 Countrywide Funding Corp.,
                   Mortgage Certificates,
AAA    $ 3,394     Series 1993-10, Class A-8,
                     1/25/24 ..............................   $  3,223,828
AAA      6,202     Series 1994-9, Class A-16,
                     5/25/24 ..............................      5,625,937
                 Federal Home Loan Mortgage Corp.,
                   Multiclass Mortgage
                   Participation Certificates,
           408     Series 1160, Class 1160-F,
                     10/15/21 .............................        428,440
         8,223@    Series 1518, Class 1518-G,
                     5/15/23 ..............................      5,031,236
         4,879@    Series 1526, Class 1526-SA,
                     6/15/23 ..............................      3,854,410
         2,558     Series 1570, Class 1570-SA,
                     8/15/23 ..............................      2,487,784
         3,000@    Series 1577, Class 1577-SC,
                     9/15/23 ..............................      2,939,063
         2,860@    Series 1580, Class 1580-SD,
                     9/15/08 ..............................      2,776,105
         3,219@    Series 1587, Class 1587-SE,
                     5/15/08 ..............................      3,231,502
         1,109     Series 1590, Class 1590-OA,
                     10/15/23 .............................      1,112,229
         4,517@    Series 1598, Class 1598-S,
                     10/15/08 .............................      4,350,028
         2,954     Series 1604, Class 1604-MB,
                     11/15/08 .............................      2,847,173
         1,457     Series 1616, Class 1616-SB,
                     11/15/08 .............................      1,466,262
         4,785     Series 1625, Class 1625-SC,
                     12/15/08 .............................      4,341,018
         5,764@    Series 1627, Class 1627-S,
                     12/15/23 .............................      4,478,418
         5,038     Series 1627, Class 1627-SC,
                     12/15/23 .............................      2,918,859
         3,084     Series 1629, Class 1629-OD,
                     12/15/23 .............................      2,073,920
        14,932     Series 1637, Class 1637-UA,
                     12/15/23 .............................     12,543,139
         3,165     Series 1666, Class 1666-S,
                     1/15/24 ..............................      3,047,993
         1,110     Series 1669, Class 1669-MD,
                     2/15/24 ..............................      1,037,242
         2,250     Series 1688, Class 1688-S,
                     12/15/13 .............................      2,250,000
         5,778     Series 1699, Class 1699-ST,
                     3/15/24 ..............................      4,241,218
           410     Series 1862, Class 1862-SF,
                     4/15/23 ..............................        408,387
         6,050     Series 2190, Class 2190-S,
                     10/15/14 .............................      6,199,748
                 Federal National Mortgage Association,
                   REMIC Pass-Through Certificates,
           243     Trust G93-27, Class 27-SB,
                     8/25/23 ..............................        181,104
         1,065     Trust 1991-38, Class 38-F,
                     4/25/21 ..............................      1,137,065
         1,079     Trust 1991-38, Class 38-SA,
                     4/25/21 ..............................      1,081,825
         1,083     Trust 1991-87, Class 87-S,
                     8/25/21 ..............................      1,284,827
           775     Trust 1991-145, Class 145-S,
                     10/25/06 .............................        894,424
           147     Trust 1993-50, Class 50-SH,
                     1/25/23 ..............................        140,325
         1,959     Trust 1993-93, Class 93-S,
                     5/25/08 ..............................      2,032,290
         2,388     Trust 1993-113, Class 113-SB,
                     7/25/23 ..............................      2,454,174
           638     Trust 1993-116, Class 116-SB,
                     7/25/23 ..............................        511,709
           374@    Trust 1993-129, Class 129-SE,
                     8/25/08 ..............................        297,320
         3,416     Trust 1993-147, Class 147-S,
                     8/25/23 ..............................      3,366,499
           173     Trust 1993-167, Class 167-SA,
                     9/25/23 ..............................        174,953
         5,446@    Trust 1993-169, Class 169-SC,
                     3/25/23 ..............................      5,201,329

<PAGE>

         3,000     Trust 1993-170, Class 170-SC,
                     9/25/08 ..............................      3,033,330
         3,500     Trust 1993-179, Class 179-SB,
                     10/25/23 .............................      3,240,781
           113     Trust 1993-183, Class 183-SM,
                     10/25/23 .............................        112,937
         4,000     Trust 1993-196, Class 196-SC,
                     10/25/08 .............................      4,066,600
           978     Trust 1993-201, Class 201-SA,
                     10/25/23 .............................        721,401
         2,799     Trust 1993-208, Class 208-SE,
                     11/25/23 .............................      2,212,248
         7,218     Trust 1993-214, Class 214-S,
                     12/25/08 .............................      7,017,317
         1,494     Trust 1993-214, Class 214-SH,
                     12/25/08 .............................      1,352,798
           157     Trust 1993-224, Class 224-S,
                     11/25/23 .............................        130,280
           100     Trust 1993-224, Class 224-SH,
                     11/25/23 .............................         84,449
         2,562     Trust 1993-247, Class 247-SN,
                     12/25/23 .............................      2,769,973
         2,573     Trust 1993-248, Class 248-FB,
                     9/25/23 ..............................      2,269,483
         2,358     Trust 1993-256, Class 256-F,
                     11/25/23 .............................      1,971,889
         1,134     Trust 1994-19, Class 19-SB,
                     1/25/24 ..............................        908,245
           375     Trust 1994-27, Class 27-SE,
                     3/25/23 ..............................        390,854


                       See Notes to Financial Statements.


                                       6
<PAGE>

--------------------------------------------------------------------------
       PRINCIPAL
        AMOUNT                                                    VALUE
RATING*  (000)             DESCRIPTION                           (NOTE 1)
--------------------------------------------------------------------------
                 ADJUSTABLE & INVERSE FLOATING
                 RATE MORTGAGES (CONT'D)
                 Federal National Mortgage Association,
                 REMIC Pass-Through Certificates (cont'd)
      $  1,000     Trust 1994-50, Class 50-S,
                     3/25/24 ..............................   $    883,610
         1,891     Trust 1996-21, Class 21-S,
                     5/25/11 ..............................      1,667,130
         3,123     Trust 1999-1, Class 1-S,
                     7/25/23 ..............................      3,154,393
           523     Trust 2000-40, Class 40-FC,
                     6/25/29 ..............................        413,036
         9,575@    Trust 2001-11, Class 11-SB,
                     4/18/29 ..............................      9,335,510
                 G. E. Capital Mortgage Services, Inc.,
Aaa      8,598     REMIC Certificate 94-7, Class A-17,
                     2/25/09 ..............................      7,818,740
AAA     10,000     REMIC Certificate 94-16, Class A-13,
                     8/25/24 ..............................      7,546,875
           946   Government National Mortgage
                   Association, REMIC Pass-Through
                   Certificates, Trust 1999-37,
                     Class 37-SA, 4/20/26 .................        951,064
Aaa      2,519   Kidder Peabody Acceptance Corp.,
                   Series 1993-1, Class-A6,
                     8/25/23 ..............................      2,219,705
                 Prudential Home Mortgage Securities Co.,
                   Mortgage Pass-Through Certificates,
AAA        743     Series 1993-43, Class A-16,
                     10/25/23 .............................        720,612
AAA      2,500     Series 1993-48, Class A-8,
                     12/25/08 .............................      2,105,600
AAA      8,929     Series 1993-50, Class A-12,
                     11/25/23 .............................      7,078,535
AAA      1,000     Series 1993-54, Class A-28,
                     1/25/24 ..............................        930,000
                                                              ------------
                                                               176,779,178
                                                              ------------
                 INTEREST ONLY MORTGAGE-BACKED
                 SECURITIES--28.0%
AAA        787   American Housing Trust III, Senior
                   Mortgage Pass-Through Certificates,
                   Series 1, Class 4, (REMIC),
                     3/25/19 ..............................        202,447
AAA        178   American Housing Trust VII, Senior
                   Mortgage Pass-Through Certificates,
                   Series A, Class 2,
                     11/25/20 .............................        647,576
                 BA Mortgage Securities, Inc.,
Aaa      1,724     Series 1997-1, Class X, 7/25/26 ........        260,311
AAA      1,873     Series 1998-1, Class 2X, 5/28/13 .......        348,794
Aaa    115,078   Commercial Mortgage Acceptance Corp.,
                   Series 1997-ML1, Class IO,
                     11/15/17 .............................      3,793,974
AAA     26,512   Countrywide Funding Corp., Mortgage
                   Certificates,
                   Series 1997-8, Class A-5,
                     1/25/28 ..............................        202,984
AAA     41,515   Credit Suisse First Boston Mortgage
                   Securities Corp. Trust,
                   Series 1997-C1, Class C1-AX,**
                     6/20/29 ..............................      3,140,969
                 Federal Home Loan Mortgage Corp.,
                   Multiclass Mortgage
                   Participation Certificates,
        23,677     Series G-13, Class 13-PP,
                     5/25/21 ..............................      2,954,626
       110,569     Series G60, Class 60-HS,
                     4/25/24 ..............................      1,796,752
        22,263@    Series 204, Class 204-IO,
                     5/29/29 ..............................      5,781,381
             8     Series 1238, Class 1238-J,
                     1/15/07 ..............................         97,977
           122     Series 1262, Class 1262-J,
                     3/15/22 ..............................      3,110,656
        10,481     Series 1353, Class 1353-S,
                     8/15/07 ..............................        638,079
        20,912     Series 1377, Class 1377-S,
                     9/15/07 ..............................      1,620,672
           105     Series 1388, Class 1388-I,
                     6/15/07 ..............................      2,420,660
         3,205     Series 1397, Class 1397-IO,
                     10/15/22 .............................        639,899
            30     Series 1418, Class 1418-K,
                     6/15/22 ..............................        847,500

<PAGE>

            75     Series 1434, Class 1434-M,
                     12/15/22 .............................      2,347,500
           200     Series 1494, Class 1494-PL,
                     3/15/22 ..............................      2,154,240
         1,780     Series 1632, Class 1632-S,
                     4/15/23 ..............................         27,878
         5,164     Series 1706, Class 1706-IA,
                     10/15/23 .............................        764,078
           687     Series 1720, Class 1720-PK,
                     1/15/24 ..............................        146,480
        50,356     Series 1809, Class 1809-SC,
                     12/15/23 .............................      4,895,647
         2,799     Series 1882, Class 1882-PJ,
                     4/15/22 ..............................        285,221
         4,053     Series 1900, Class 1900-SV,
                     8/15/08 ..............................        314,793
        43,342     Series 1914, Class 1914-PC,
                     12/15/11 .............................        752,413
         3,230     Series 1917, Class 1917-AS,
                     5/15/08 ..............................        303,064
        17,938     Series 1946, Class 1946-SG,
                     3/15/24 ..............................      3,127,014
        15,106     Series 2002, Class 2002-HJ,
                     10/15/08 .............................      1,063,526
         7,447     Series 2037, Class 2037-IB,
                     12/15/26 .............................      1,152,146



                       See Notes to Financial Statements.



                                       7
<PAGE>

--------------------------------------------------------------------------
       PRINCIPAL
        AMOUNT                                                    VALUE
RATING*  (000)             DESCRIPTION                           (NOTE 1)
--------------------------------------------------------------------------
                 INTEREST ONLY MORTGAGE-BACKED
                 SECURITIES (CONT'D)
                 Federal Home Loan Mortgage Corp.,
                 Multiclass Mortgage
                 Participation Certicates (cont'd)
       $ 6,026     Series 2039, Class 2039-PI,
                     2/15/12 ..............................   $    720,349
        10,132     Series 2050, Class 2050-PI,
                     12/15/11 .............................      1,519,756
         8,549     Series 2063, Class 2063-PI,
                     4/15/12 ..............................      1,138,103
         4,174     Series 2066, Class 2066-PJ,
                     12/15/26 .............................        829,830
        18,000@    Series 2080, Class 2080-PL,
                     1/15/27 ..............................      4,338,180
            32     Series 2099, Class 2099-JB,
                     9/15/22 ..............................      1,211,770
         3,137     Series 2102B, Class 2102B-KI,
                     9/15/28 ..............................        584,211
        10,857     Series 2103, Class 2103-PI,
                     5/15/12 ..............................      1,352,004
        23,000     Series 2130, Class 2130-SC,
                     3/15/29 ..............................      2,587,500
         9,622     Series 2140, Class 2140-UK,
                     9/15/11 ..............................      1,250,801
         7,075     Series 2190, Class 2190-SC,
                     10/15/14 .............................      1,282,257
        19,232     Series 2289, Class 2289-S,
                     2/15/31 ..............................      1,634,685
        33,476     Series 2296, Class 2296-SA,
                     3/15/16 ..............................      2,170,694
                 Federal National Mortgage Association,
                   REMIC Pass-Through Certificates,
             6     Trust G50, Class 50-G,
                     12/25/21 .............................        151,206
         1,701     Trust G92-5, Class 5-H,
                     1/25/22 ..............................        416,226
             4     Trust G92-12, Class 12-C,
                     2/25/22 ..............................         84,105
         6,089     Trust G92-60, Class 60-SB,
                     10/25/22 .............................        295,825
        16,774@    Trust 301, Class 2,
                     4/01/29 ..............................      4,258,959
        43,593@    Trust 302, Class 2,
                     6/01/29 ..............................     11,497,692
           436     Trust 1992-187, Class 187-JA,
                     10/25/06 .............................          8,351
         5,393     Trust 1993-24, Class 24-PK,
                     3/25/23 ..............................        913,371
         4,657     Trust 1993-46, Class 46-S,
                     5/25/22 ..............................        188,008
         8,017     Trust 1993-199, Class 199-SB,
                     10/25/23 .............................        315,215
        10,502     Trust 1993-201, Class 201-JC,
                     5/25/19 ..............................        593,655
         2,008     Trust 1993-202, Class 202-QA,
                     6/25/19 ..............................         98,073
        29,690     Trust 1994-33, Class 33-SG,
                     3/25/09 ..............................      1,642,255
        12,370     Trust 1995-26, Class 26-SW,
                     2/25/24 ..............................      2,541,797
        12,371     Trust 1996-68, Class 68-SC,
                     1/25/24 ..............................      1,008,969
        33,336     Trust 1997-37, Class 37-SE,
                     10/25/22 .............................        599,974
         8,423     Trust 1997-50, Class 50-SI,
                     4/25/23 ..............................        196,101
        35,476     Trust 1997-65, Class 65-SB,
                     3/25/24 ..............................      1,626,266
        27,000     Trust 1997-65, Class 65-SG,
                     6/25/23 ..............................      2,306,610
        11,139     Trust 1997-76, Class 76-SP,
                     12/25/23 .............................      1,799,309
        51,000@    Trust 1997-90, Class 90-M,
                     1/25/28 ..............................     14,443,200
         8,512     Trust 1998-12, Class 12-PL,
                     7/18/19 ..............................        646,862
         6,561     Trust 1998-25, Class 25-PG,
                     3/18/22 ..............................        773,526
         5,753     Trust 1999-W4, Class W4-IO,
                     12/25/28 .............................      1,184,823
        36,742     Trust 2000-2, Class 2-ID,
                     3/25/23 ..............................        367,417

<PAGE>

AAA        471   First Boston Mortgage Securities Corp.,
                   Series 1987-C, Class C-Z,
                     4/25/17 ..............................        112,071
AAA     43,059   GMAC Commercial Mortgage
                   Securities, Inc.,
                   Trust 1997-C1, Class C1-X,
                     7/15/27 ..............................      3,013,439
AAA     48,044   Goldman Sachs Mortgage Securities
                   Corp., Mortgage Participation Certificates,
                   Series 1998-5, Class 5,**
                     6/19/27 ..............................        975,889
                 Government National Mortgage
                   Association, REMIC Pass-Through
                   Certificates,
         4,104     Trust 1998-14, Class 14-PK,
                     11/20/26 .............................        802,056
        16,439     Trust 1999-5, Class 5-S,
                     2/16/29 ..............................        863,068
        52,085     Trust 1999-8, Class 8-S,
                     3/16/29 ..............................      2,685,652
AAA     29,647   Hanover Grantor Trust,
                   Series 1999-A, Class A1-IO,**
                     8/28/27 ..............................        838,452
AAA     31,772   Headlands Mortgage Securities, Inc.,
                   Mortgage Certificates,
                   Series 1997-1, Class X-1,
                     3/25/27 ..............................        466,644
Aaa        601   Kidder Peabody Acceptance Corp.,
                   Series B, Class B-2,
                     4/22/18 ..............................        125,603
AAA     13,035   Merrill Lynch Mortgage Investors, Inc.,
                   Mortgage Pass-Through Certificates,
                   Series 95-C2, Class-IO,
                     6/15/21 ..............................        358,450

                       See Notes to Financial Statements.


                                       8
<PAGE>

--------------------------------------------------------------------------
       PRINCIPAL
        AMOUNT                                                    VALUE
RATING*  (000)             DESCRIPTION                           (NOTE 1)
--------------------------------------------------------------------------
                 INTEREST ONLY MORTGAGE-BACKED
                 SECURITIES (CONT'D)
AAA   $ 17,514   Morgan Stanley Capital 1, Inc.,
                   Series 1997-HF1, Class HF1-X,**
                     6/15/17 ..............................   $  1,060,160
 AAA   102,839   PRUDENTIAL HOME MORTGAGE SECURITIES CO.,
                   MORTGAGE PASS-THROUGH CERTIFICATES,
                   Series 1994-5, Class A-9,
                     2/25/24 ..............................        787,357
AAA          1   Prudential Securities, Inc.,
                   Trust 15, Class 1-G,
                     5/20/21 ..............................        139,799
        64,903   Small Business Administration,
                   Series 2000-1, Class 1-I0,
                     4/01/15 ..............................      1,987,658
AAA          9   Structured Asset Securities Corp.,
                   Series 1991-2, Class GA,
                     12/20/21 .............................        190,757
       407,507   United States Department of
                   Veteran Affairs,Trust 1999-2,
                   Class 1, 5/15/29 .......................        191,019
                                                              ------------
                                                               129,015,266
                                                              ------------
                 PRINCIPAL ONLY MORTGAGE-BACKED
                 SECURITIES--15.0%
Aaa        573   Chase Mortgage Finance Corp.,
                   Mortgage Pass-Through Certificates,
                   Series 1994-A, Class A-P,
                     1/25/10 ..............................        476,286
AAA        427   Collateralized Mortgage Obligation
                   Trust, Trust 29, Class A, 5/23/17 ......        356,786
                 Drexel Burnham Lambert, Inc.,
AAA        159     Trust K, Class K-1,
                     9/23/17 ..............................        124,158
AAA      1,623     Trust V, Class V-1A,
                     9/01/18 ..............................      1,509,128
                 Federal Home Loan Mortgage Corp.,
                   Multiclass Mortgage
                   Participation Certificates,
         2,482     Series G-50, Class 50-AM,
                     4/25/24 ..............................      1,789,251
         1,762     Series T-8, Class A-10,
                     11/15/28 .............................      1,181,879
           651     Series 1418, Class 1418-M,
                     11/15/22 .............................        306,620
         2,653     Series 1571, Class 1571-G,
                     8/15/23 ..............................      1,319,059
        11,971@    Series 1686, Class 1686-B,
                     2/15/24 ..............................      8,379,647
         1,583     Series 1691, Class 1691-G,
                     3/15/24 ..............................      1,450,550
         2,664     Series 1739, Class 1739-B,
                     2/15/24 ..............................      2,254,065
           632     Series 1750, Class 1750-PC,
                     3/15/24 ..............................        592,226
         1,257     Series 1857, Class 1857-PB,
                     12/15/08 .............................      1,133,653
         5,500     Series 2009, Class 2009-HJ,
                     10/15/22 .............................      3,935,910
         8,019     Series 2082, Class 2082-PN,
                     1/15/24 ..............................      4,395,650
           900     Series 2087, Class 2087-PO,
                     9/15/25 ..............................        590,922
         1,555     Series 2131, Class 2131-PO,
                     3/15/29 ..............................        940,594
         1,027     Series 2162, Class 2162-L,
                     6/15/29 ..............................        426,407
         2,354     Series 2169, Class 2169-EA,
                     6/15/29 ..............................      1,332,905
         1,419     Series 2217, Class 2217-PO,
                     2/15/30 ..............................      1,413,652
         3,793     Series 2298, Class 2298-PO,
                     3/15/31 ..............................      2,447,503
                 Federal National Mortgage Association,
                   REMIC Pass-Through Certificates,
         1,428     Trust G93-2, Class 2-KB,
                     1/25/23 ..............................        788,218
         2,131     Trust 225, Class 1,
                     6/01/23 ..............................      1,857,176
         1,852     Trust 279, Class 279-1,
                     7/01/26 ..............................      1,596,276
           378     Trust 1991-7, Class 7-J,
                     2/25/21 ..............................        309,096
           528     Trust 1994-9, Class 9-C,
                     8/25/23 ..............................        513,335

<PAGE>

         1,015     Trust 1996-5, Class 5-NH,
                     4/25/24 ..............................        733,574
           640     Trust 1996-5, Class 5-PV,
                     11/25/23 .............................        597,985
        14,300     Trust 1996-14, Class 14-PE,
                     8/25/23 ..............................      7,158,938
         3,151     Trust 1996-38, Class 38-E,
                     8/25/23 ..............................      1,652,278
         2,216     Trust 1996-54 Class 54-M,
                     9/25/23 ..............................      1,902,865
         1,321     Trust 1997-85, Class 85-EL,
                     7/25/23 ..............................      1,293,997
           186     Trust 1997-85, Class 85-LE,
                     10/25/23 .............................        184,568
         9,000@    Trust 1998-26, Class 26-L,
                     3/25/23 ..............................      6,602,581
         1,031     Trust 1998-48, Class 48-P,
                     8/18/28 ..............................        667,847
         2,216     Trust 1999-W4, Class W4-PO,
                     2/25/29 ..............................      1,452,413
AAA      1,197   First Union Residential, Mortgage
                   Certificates, Series 1999-A,
                   Class A-1APO,
                     3/25/15 ..............................        964,998
AAA     13,000   Fund America Investment Corp.,
                   Series 1993-C, Class B,
                     4/29/30 ..............................      2,075,970


                       See Notes to Financial Statements.



                                       9
<PAGE>

--------------------------------------------------------------------------
       PRINCIPAL
        AMOUNT                                                    VALUE
RATING*  (000)             DESCRIPTION                           (NOTE 1)
--------------------------------------------------------------------------
                 PRINCIPAL ONLY MORTGAGE-BACKED
                 SECURITIES (CONT'D)
       $ 1,758   Government National Mortgage
                   Association, REMIC Pass-Through
                   Certificates,
                   Trust 1999-40, Class N,
                     6/20/27 ..............................   $  1,378,327
                 Housing Security, Inc.,
AAA        121     Series 1992-EB, Class B-8,
                     9/25/22 ..............................        104,825
AAA        427     Series 1993-D, Class D-8,
                     6/25/23 ..............................        369,644
AAA        407   Structured Mortgage Asset Trust,
                   Series 1993-3C, Class CX,
                     4/25/24 ..............................        324,254
                                                              ------------
                                                                68,886,016
                                                              ------------
                 COMMERCIAL MORTGAGE-BACKED
                 SECURITIES--4.0%
AAA      6,000   Merrill Lynch Mortgage Investors, Inc.,
                   Series 1996-C1, Class A-3,
                     7.42%, 4/25/28 .......................      6,149,824
AAA     10,250   NYC Mortgage Loan Trust,
                   Series 1996, Class A-2,**
                     6.75%, 6/25/11 .......................     10,246,797
AAA      2,000   PaineWebber Mortgage Acceptance
                   Corp. IV,
                   Series 1995-M1, Class B,**
                     6.95%, 1/15/07 .......................      2,020,975
                                                              ------------
                                                                18,417,596
                                                              ------------
                 ASSET-BACKED SECURITIES
AAA        155@  CHASE MANHATTAN GRANTOR TRUST,
                 Series 1996-B, Class A,
                   6.61%, 9/15/02 .........................        155,613
                                                              ------------
                 U.S GOVERNMENT AND AGENCY
                 SECURITIES--21.0%
                 Overseas Private Investment Corp.,
           299     5.46%, 5/29/12 .........................        286,703
           270     5.79%, 5/29/12 .........................        270,234
           357     5.88%, 5/29/12 .........................        351,169
           983     5.94%, 5/29/12 .........................        983,821
           328     6.10%, 5/29/12 .........................        328,085
           242     6.27%, 5/29/12 .........................        241,506
           385     6.81%, 5/29/12 .........................        394,091
           501     6.84%, 5/29/12 .........................        509,930
         3,061     6.89%, 5/29/12 .........................      3,120,597
         1,028     6.91%, 5/29/12 .........................      1,060,278
           271     7.35%, 5/29/12 .........................        287,909
                 Small Business Administration,
         3,521     Series 1996-20E,
                     7.60%, 5/01/16 .......................      3,683,027
         3,023     Series 1996-20F,
                     7.55%, 6/01/16 .......................      3,153,197
         3,008     Series 1996-20G-1,
                     7.70%, 7/01/16 .......................      3,162,211
         2,985     Series 1996-20H,
                     7.25%, 8/01/16 .......................      3,063,326
         5,586     Series 1996-20K,
                     6.95%, 11/01/16 ......................      5,641,028
         2,337     Series 1997-20C,
                     7.15%, 3/01/17 .......................      2,383,552
         3,106     Series 1998-P10A-1,
                     6.12%, 2/01/08 .......................      3,032,763
                 United States Treasury Bonds,
       176,000     Zero Coupon, 2/15/19 ...................     59,695,680
         5,000@    6.375%, 8/15/27                               5,300,000
                                                              ------------
                                                                96,949,107
                                                              ------------
                 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 $632,460,854) ....................    647,347,982
                                                              ------------

<PAGE>

                 SHORT-TERM INVESTMENT--0.2%
                 DISCOUNT NOTE
           800   Federal Home Loan Bank,
                   4.50%, 5/01/01
                   (cost $800,000) ........................        800,000
                                                              ------------
                 Total investments, before investment
                   sold short--140.5%
                   (cost $633,260,854)                         648,147,982
                                                              ------------
                 INVESTMENT SOLD SHORT--(3.4%)
       (15,000)  United States Treasury Bonds,
                   6.25%, 5/15/30
                   (proceeds $16,396,875) .................    (15,820,312)
                                                              ------------
                 Total investments, net of investment
                   sold short--137.1%
                   (cost $616,863,979) ....................    632,327,670
                 Liabilities in excess of
                   other assets--(37.1)% ..................   (171,034,068)
                                                              ------------
                 NET ASSETS--100% .........................   $461,293,602
                                                              ============

--------------
*   Using the higher of Standard & Poor's, 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 0.03% 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
<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
STATEMENT OF ASSETS AND LIABILITIES
April 30, 2001 (Unaudited)
--------------------------------------------------------------------------------

ASSETS
Investments, at value (cost $633,260,854) (Note 1) .........  $648,147,982
Cash .......................................................        71,012
Deposits with brokers as collateral for
  investments sold short (Note 1) ..........................    16,368,750
Interest receivable ........................................    10,167,988
Interest rate swaps, at value (amortized
  cost $(141,027)) (Notes 1 & 3) ...........................     2,116,172
Due from broker--variation margin (Notes 1 & 3) ............       262,852
Receivable for investments sold ............................        36,215
Interest rate caps, at value
  (amortized cost $2,382,452) (Notes 1 & 3) ................        33,795
Other assets ...............................................        35,734
                                                              ------------
                                                               677,240,500
                                                              ------------

LIABILITIES
Reverse repurchase agreements (Note 4) .....................   128,422,250
Payable for investments purchased ..........................    61,642,034
Investments sold short, at value
  (proceeds $16,396,875) (Note 1) ..........................    15,820,312
Due to broker-collateral on interest rate swaps ............     3,675,000
Interest payable ...........................................     3,172,872
Interest rate floor, at value
  (proceeds $1,311,750) (Notes 1 & 3) ......................     2,582,124
Investment advisory fee payable (Note 2) ...................       248,949
Administration fee payable (Note 2) ........................        76,600
Deferred directors fees (Note 1) ...........................        30,656
Other accrued expenses .....................................       276,101
                                                              ------------
                                                               215,946,898
                                                              ------------
NET ASSETS .................................................  $461,293,602
                                                              ============
Net assets were comprised of:
  Common stock at par (Note 5) .............................  $    628,499
  Paid-in capital in excess of par .........................   563,355,769
                                                              ------------
                                                               563,984,268
  Undistributed net investment income ......................     6,456,062
  Accumulated net realized loss ............................  (119,076,285)
  Net unrealized appreciation ..............................     9,929,557
                                                              ------------
Net assets, April 30, 2001 .................................  $461,293,602
                                                              ============
NET ASSET VALUE PER SHARE:
  ($461,293,602 / 62,849,878 shares of
  common stock issued and outstanding) .....................         $7.34
                                                                     =====


--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30, 2001 (UNAUDITED)
--------------------------------------------------------------------------------


NET INVESTMENT INCOME
Income
  Interest earned (net of premium amortization
  of $11,133,251 and interest expense
  of $4,234,140) ..........................................    $17,054,274
                                                               -----------
Operating Expenses
  Investment advisory .....................................      1,481,423
  Administration ..........................................        455,822
  Reports to shareholders .................................         83,000
  Custodian ...............................................         69,000
  Transfer agent ..........................................         66,000
  Independent accountants .................................         49,000
  Directors ...............................................         37,000
  Legal ...................................................         36,000
  Registration ............................................         27,000
  Miscellaneous ...........................................         76,918
                                                               -----------
    Total operating expenses ..............................      2,381,163
                                                               -----------
Net investment income .....................................     14,673,111
                                                               -----------
<PAGE>

REALIZED AND UNREALIZED GAIN (LOSS)
  ON INVESTMENTS
Net realized gain (loss) on:
  Investments .............................................       (110,392)
  Interest rate swaps .....................................        174,000
  Short sales .............................................     (1,153,061)
  Futures .................................................    (16,007,638)
                                                               -----------
                                                               (17,097,091)
                                                               -----------
Net change in unrealized appreciation
  (depreciation) on:
  Investments .............................................     28,730,805
  Interest rate swaps .....................................      1,523,738
  Short sales .............................................        558,949
  Interest rate caps ......................................       (431,724)
  Interest rate floor .....................................     (1,270,374)
  Futures .................................................     (2,228,199)
                                                               -----------
                                                                26,883,195
                                                               -----------
Net gain on investments ...................................      9,786,104
                                                               -----------
NET INCREASE IN NET ASSETS
  RESULTING FROM OPERATIONS ...............................    $24,459,215
                                                               ===========


                       See Notes to Financial Statements.


                                       11
<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
STATEMENT OF CASH FLOWS
SIX MONTHS ENDED APRIL 30, 2001 (UNAUDITED)
--------------------------------------------------------------------------------

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 .............................................    $ 24,459,215
                                                              ------------
Increase in investments ..................................    (127,049,194)
Net realized loss ........................................      17,097,091
Increase in unrealized appreciation ......................     (26,883,210)
Decrease in interest rate caps ...........................       1,310,586
Increase in interest rate floor ..........................       2,582,124
Increase in interest receivable ..........................        (661,610)
Decrease in due from broker-variation margin .............         450,646
Increase in other assets .................................         (20,627)
Decrease in receivable for investments sold ..............           8,693
Decrease in payable for investments sold short ...........      (9,995,259)
Increase in appreciation on interest rate swaps ..........      (1,523,738)
Increase in interest payable .............................         309,490
Decrease in deposits with brokers for
  securities sold short ..................................       9,835,481
Increase in payable for investments purchased ............      61,642,034
Increase in accrued expenses .............................       2,097,320
                                                              ------------
  Total adjustments ......................................     (70,800,173)
                                                              ------------
Net cash flows used for operating activities .............    $(46,340,958)
                                                              ============

INCREASE (DECREASE) IN CASH
Net cash flows used for operating activities .............    $(46,340,958)
Cash flows provided by financing activities:
  Increase in reverse repurchase agreements ..............      63,961,875
  Cash dividends paid ....................................     (17,675,986)
                                                              ------------
Net cash flows provided by financing activities ..........      46,285,889
                                                              ------------
  Net decrease in cash ...................................         (55,069)
  Cash at beginning of period ............................         126,081
                                                              ------------
  Cash at end of period ..................................    $     71,012
                                                              ============


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

                                           SIX MONTHS
                                              ENDED               YEAR ENDED
                                            APRIL 30,             OCTOBER 31,
                                              2001                    2000
                                          ------------            -----------

INCREASE (DECREASE)
IN NET ASSETS
Operations:
  Net investment income ...............   $14,673,111)            $ 31,851,763
  Net realized loss ...................   (17,097,091)                (725,982)
  Net change in unrealized
  appreciation (depreciation) .........    26,883,195                 (662,263)
                                         ------------             ------------
  Net increase in
    net assets resulting from
    operations ........................    24,459,215               30,463,518
  Dividends from net investment
    income ............................   (17,675,986)             (35,352,025)
                                         ------------             ------------
  Total increase (decrease) ...........     6,783,229               (4,888,507)

NET ASSETS
Beginning of period ...................   454,510,373              459,398,880
                                         ------------             ------------
End of period (including
  undistributed net investment
  income of $6,456,062 and
  $9,458,937, respectively) ...........  $461,293,602)            $454,510,373
                                         ============             ============



                       See Notes to Financial Statements.


                                       12
<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>
                                                                SIX MONTHS
                                                                   ENDED                  YEAR ENDED OCTOBER 31,
                                                                APRIL  30,    --------------------------------------------------
                                                                   2001        2000       1999       1998       1997       1996
                                                               ------------   ------     ------     ------     ------     ------
<S>                                                              <C>         <C>        <C>        <C>        <C>        <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period ..........................  $   7.23    $   7.31   $   7.94   $   8.12   $   7.61   $   7.66
                                                                 --------    --------   --------   --------   --------   --------
  Net investment income (net of $0.07, $0.12, $0.16,
  $0.19, $0.18, and  $0.17, respectively, of interest expense)        .24         .50        .73        .62        .58        .55
  Net realized and unrealized gain (loss) .....................       .15        (.02)      (.80)      (.24)       .49       (.01)
                                                                 --------    --------   --------   --------   --------   --------
Net increase (decrease) from investment operations ............       .39         .48       (.07)       .38       1.07        .54
                                                                 --------    --------   --------   --------   --------   --------
Dividends and distributions:
  Dividends from net investment income ........................      (.28)       (.56)      (.56)      (.56)      (.56)      (.55)
  Distributions in excess of net investment income ............        --          --         --         --         --       (.04)
                                                                 --------    --------   --------   --------   --------   --------
Total dividends and distributions .............................      (.28)       (.56)      (.56)      (.56)      (.56)      (.59)
                                                                 --------    --------   --------   --------   --------   --------
Net asset value, end of period* ...............................  $   7.34    $   7.23   $   7.31   $   7.94   $   8.12   $   7.61
                                                                 ========    ========   ========   ========   ========   ========
Per share market value, end of period* ........................  $   7.00    $   6.38   $   6.13   $   6.94   $   6.88   $   6.25
                                                                 ========    ========   ========   ========   ========   ========
TOTAL INVESTMENT RETURN+ ......................................     14.40%      14.01%     (4.04%)     9.29%     19.68%     (5.36%)
                                                                 ========    ========   ========   ========   ========   ========

RATIOS TO AVERAGE NET ASSETS:
Operating expenses ............................................     1.05%+++     1.05%      1.01%      1.01%      1.02%      1.08%
Operating expenses and interest expense .......................     2.91%+++     2.78%      3.03%      3.33%      3.44%      3.38%
Net investment income .........................................     6.46%+++     7.11%      9.54%      7.74%      7.63%      7.36%

SUPPLEMENTAL DATA:
Average net assets (in thousands) .............................  $458,341    $448,027   $482,685   $506,858   $474,903   $473,056
Portfolio turnover ............................................        29%        114%       144%       214%       220%       440%
Net assets, end of period (in thousands) ......................  $461,294    $454,510   $459,399   $499,075   $510,230   $478,085
Reverse repurchase agreements outstanding,
  end of period (in thousands) ................................  $128,422    $ 64,460   $186,451   $198,336   $228,530   $204,438
Asset coverage++ ..............................................  $  4,625    $  8,095   $  3,478   $  3,520   $  3,233   $  3,339
</TABLE>

-----------------
  * 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 period 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.  Total investment
    return for period less than one year is not annualized.
 ++ Per $1,000 of reverse repurchase agreement outstanding.
+++ Annualized.


The information above represents the unaudited operating  performance data for a
share of common stock outstanding,  total investment  return,  ratios to average
net  assets  and  other  supplemental  data  for  the  periods  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
<PAGE>

--------------------------------------------------------------------------------
THE BLACKROCK INCOME TRUST INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------

NOTE 1. ORGANIZATION   The BlackRock Income Trust Inc. (the "Trust"), a Maryland
& ACCOUNTING           corporation,   is  a  diversified  closed-end  management
POLICIES               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


                                       14
<PAGE>


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-


                                       15
<PAGE>

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,


                                       16
<PAGE>


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.

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.

   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.
PIFM pays occupancy and certain  clerical and accounting costs of the Trust. The
Trust bears all other costs and expenses.

NOTE 3. PORTFOLIO      Purchases and sales of investment securities,  other than
SECURITIES             short-term  investments  and  dollar  rolls,  for the six
                       months ended April 30, 2001 aggregated  $313,547,215  and
$172,612,340, 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 April 30, 2001, the Trust held 3.1%
of its 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 April 30, 2001 was
$633,822,454 and,  accordingly,  net unrealized  appreciation for federal income
tax purposes was $14,325,528 (gross unrealized appreciation  $39,682,445;  gross
unrealized depreciation $25,356,917).

   For federal income tax purposes, the Trust has a capital loss carryforward at
October 31, 2000 of approximately $104,060,000 of which approximately $3,440,300
will   expire  in  2001,   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, and approximately
$1,352,200 will expire in 2008.  Accordingly,  no capital gains  distribution is
expected to be paid to shareholders until net gains have been realized in excess
of such amounts.

   Details of open financial futures contracts at April 30, 2001 are as follows:

                                                 VALUE AT
NUMBER OF             EXPIRATION    VALUE AT     APRIL 30,     UNREALIZED
CONTRACTS    TYPE        DATE      TRADE DATE      2001       DEPRECIATION
---------   ------      ------     ----------    --------     ------------
  Long
Position:
  1,098   30 yr-Bond   Jun. 2001  $113,404,974  $110,314,687   $(3,090,287)

  Short
Positions:
  (413)   Eurodollar   Jun. 2001   (39,209,528)  (39,521,625)     (312,097)
  (413)   Eurodollar   Sep. 2001   (39,223,965)  (39,513,375)     (289,410)
  (413)   Eurodollar   Dec. 2001   (39,134,590)  (39,391,688)     (257,098)
  (413)   Eurodollar   Mar. 2002   (39,096,090)  (39,319,500)     (223,410)
                                                               -----------
                                                               $(4,172,302)
                                                               ===========

<PAGE>


   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 agreement. Details of the caps at April 30, 2001
are as follows:

NOTIONAL                                               VALUE AT
 AMOUNT   FIXED    FLOATING   TERMINATION   AMORTIZED   APRIL 30,   UNREALIZED
  (000)   RATE       RATE         DATE        COST       2001      DEPRECIATION
-------- ------    --------   -----------   --------   ---------   ------------
$ 50,000  6.00% 3 mth. LIBOR    2/19/02    $  259,545   $      5   $  (259,540)
 100,000  6.50% 3 mth. LIBOR     4/4/02       664,524         10      (664,514)
 100,000  7.25% 3 mth. LIBOR    4/23/03       949,890     10,000      (939,890)
 100,000  7.75% 3 mth. LIBOR     5/4/03       508,493     23,780      (484,713)
                                           ----------   --------   -----------
                                           $2,382,452   $ 33,795   $(2,348,657)
                                           ==========   ========   ===========


                                       17
<PAGE>


   Details of the interest rate floor held at April 30, 2001 are as follows:

NOTIONAL                                               VALUE AT
 AMOUNT     FIXED  FLOATING   TERMINATION   AMORTIZED   APRIL 30,   UNREALIZED
  (000)     RATE     RATE         DATE        COST       2001      DEPRECIATION
--------   ------  --------   -----------   --------   ---------   ------------
$(120,000) 6.00% 1 mth. LIBOR  1/25/05   $(1,311,750) $(2,582,124)  $(1,270,374)
                                         ===========  ===========   ===========

   Details of open interest rate swaps at April 30, 2001 are as follows:

 NOTIONAL                                                       UNREALIZED
 AMOUNT                   FIXED     FLOATING     TERMINATION    APPRECIATION
  (000)        TYPE       RATE        RATE           DATE       (DEPRECIATION)
--------      ------      -----     --------     -----------    -------------
$ 72,000   Interest Rate  5.54%   3 MTH. LIBOR      5/1/04       $        0
 (18,000)  Interest Rate  6.12%   3 mth. LIBOR      5/1/11                0
 100,000   Interest Rate  6.85%   6 mth. LIBOR      9/6/02        2,879,999
 (50,000)  Interest Rate  6.95%   6 mth. LIBOR      9/6/10       (3,031,167)
 100,000   Interest Rate  7.20%   6 mth. LIBOR      6/16/02       2,865,643
 (20,000)  Interest Rate  7.50%   1 mth. LIBOR      4/25/02        (457,276)
                                                                 ----------
                                                                 $2,257,199
                                                                 ==========

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 period  ended April 30, 2001 was  approximately  $146,798,665  at a weighted
average  interest rate of  approximately  5.82%.  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 period
ended April 30, 2001.

NOTE 5. CAPITAL        There  are  200 million  shares of $.01 par  value common
                       stock  authorized.  Of the 62,849,878  shares outstanding
at April 30,  2001,  the Advisor  owned  10,753 shares.

NOTE 6. DIVIDENDS      Subsequent to April 30, 2001, the Board of  Directors  of
                       the Trust declared dividends from undistributed  earnings
of $0.046875 per share payable May 31, 2001 to shareholders of record on May 15,
2001.


                                       18
<PAGE>

--------------------------------------------------------------------------------
                         THE BLACKROCK INCOME TRUST INC.
                           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 State Street Bank and Trust  Company (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.






                                       19
<PAGE>

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


      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.

ANNUAL MEETING OF TRUST SHAREHOLDERS. 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.

   The Annual Meeting of Trust Shareholders was held May 24, 2001 to vote on the
following matter:

   To elect three Directors as follows:

         DIRECTOR                             CLASS         TERM       EXPIRING
         --------                             -----         ----       --------
         Andrew F. Brimmer ................    III        3 years        2004
         Kent Dixon .......................    III        3 years        2004
         Laurence D. Fink .................    III        3 years        2004

         Directors  whose  term of office  continues  beyond  this  meeting  are
         Richard E. Cavanagh,  Frank J. Fabozzi,  James Clayburn La Force,  Jr.,
         Walter F. Mondale and Ralph L. Scholsstein.

   Shareholders  elected the three Directors.  The results of the voting were as
follows:

                                       VOTES FOR    VOTES AGAINST   ABSTENTIONS
                                       ---------    -------------   -----------
         Andrew F. Brimmer ........... 57,551,093         --           859,379
         Kent Dixon .................. 57,675,415         --           735,057
         Laurence D. Fink ............ 57,679,487         --           730,985



                                       20
<PAGE>

--------------------------------------------------------------------------------
                         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
$202 billion of assets under management as of March 31, 2001.  BlackRock manages
assets on  behalf  of more  than  3,300  institutions  and  200,000  individuals
worldwide, including nine of the ten largest companies in the U.S. as determined
by FORTUNE MAGAZINE,  through a variety of equity,  fixed income,  liquidity and
alternative  investment  separate  accounts  and  mutual  funds,  including  the
BLACKROCK  FUNDS and  BLACKROCK  PROVIDENT  INSTITUTIONAL  FUNDS.  In  addition,
BlackRock  provides risk management and technology  services to a growing number
of  institutional  investors  under the BLACKROCK  SOLUTIONS  name.  Clients are
served from  BlackRock's  headquarters  in New York City,  as well as offices in
Wilmington, DE, Edinburgh, Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a
member of The PNC Financial  Services Group,  Inc.  ("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.

                                       21
<PAGE>


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,  State Street
Bank & Trust Company.  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 33 1/3% 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.

                                       22
<PAGE>

--------------------------------------------------------------------------------
                         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.


                                       23
<PAGE>


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:            Mortgage-backed  securities  issued by Fannie
                                   Mae, Freddie Mac or Ginnie Mae.

NET ASSET  VALUE  (NAV):           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.


<PAGE>

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.


                                       24
<PAGE>

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

<TABLE>
<CAPTION>
TAXABLE TRUSTS
-----------------------------------------------------------------------------------------------------------

                                                                               STOCK               MATURITY
                                                                               SYMBOL                DATE
                                                                               ------              --------
<S>                                                                             <C>                  <C>
PERPETUAL TRUSTS
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

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

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
</TABLE>






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


                                       25
<PAGE>

--------------------------------------------------------------------------------
                            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
$202 billion of assets under management as of March 31, 2001.  BlackRock manages
assets on  behalf  of more  than  3,300  institutions  and  200,000  individuals
worldwide, including nine of the ten largest companies in the U.S. as determined
by FORTUNE MAGAZINE,  through a variety of equity,  fixed income,  liquidity and
alternative  investment  separate  accounts  and  mutual  funds,  including  the
BLACKROCK  FUNDS and  BLACKROCK  PROVIDENT  INSTITUTIONAL  FUNDS.  In  addition,
BlackRock  provides risk management and technology  services to a growing number
of  institutional  investors  under the BLACKROCK  SOLUTIONS  name.  Clients are
served from  BlackRock's  headquarters  in New York City,  as well as offices in
Wilmington, DE, Edinburgh, Scotland, Tokyo, Japan, and Hong Kong. BlackRock is a
member of The PNC Financial  Services Group,  Inc.  ("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


                                       26
<PAGE>

-------------                                       ----------------------------
 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                                          -------------
Ralph L. Schlosstein, PRESIDENT              THE   BLACKROCK
Scott Amero, VICE PRESIDENT                       -------------
Keith T. Anderson, VICE PRESIDENT            INCOME
Michael C. Huebsch, VICE PRESIDENT           TRUST INC.
Robert S. Kapito, VICE PRESIDENT
Richard M. Shea, VICE PRESIDENT/TAX          ===============================
Henry Gabbay, TREASURER                      SEMI-ANNUAL REPORT
James Kong, ASSISTANT TREASURER              APRIL 30, 2001
Anne Ackerley, SECRETARY

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

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

CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
(800) 699-1BFM

INDEPENDENT ACCOUNTANTS
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281-1434

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

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

   The  accompanying  financial  statements  as of
April 30, 2001 were not  audited and  accordingly,
no opinion is  expressed  on them.  This report is
for shareholder information.

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

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

[GRAPHIC] Printed on recycled paper          09247F-10-0    [GRAPHIC] BLACKROCK


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

===================================
SEMI-ANNUAL REPORT
APRIL 30, 2001


[GRAPHIC] BLACKROCK
</TEXT>
</DOCUMENT>
