Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Blackstone doubles second quarter earnings on surging asset sales

EconomyJul 22, 2021 11:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The ticker and trading information for Blackstone Group is displayed at the post where it is traded on the floor of the New York Stock Exchange (NYSE) April 4, 2016. REUTERS/Brendan McDermid/File Photo

By Chibuike Oguh

(Reuters) -Blackstone Group Inc said on Thursday its second-quarter distributable earnings nearly doubled year-on-year, driven by a surge in asset sales across its real estate, private equity and credit businesses.

Blackstone (NYSE:BX)'s shares rose 4.5% on Thursday morning, pushing its market capitalization to a record high of $131 billion, overtaking Goldman Sachs Group Inc (NYSE:GS), another Wall Street heavyweight.

Shares of other publicly listed private equity firms also staged record rallies as they capitalized on frothy market valuations to cash out on assets for top dollar. Private equity firms that had previously been wary of a stock market debut, such as TPG and L Catterton, are now considering following suit, Reuters has reported.

Blackstone's distributable earnings, which represents the cash used to pay dividends to shareholders, rose to $1.1 billion from $548 million a year earlier.

This translated into distributable earnings per share of 82 cents, surpassing the average analyst estimate of 78 cents, data compiled by Refinitiv showed.

Blackstone said its capital deployment reached a record $23.8 billion during the quarter. It also committed to investing an additional $28.5 billion in deals such as acquiring a majority stake in medical supplier Medline Industries Inc alongside Carlyle Group (NASDAQ:CG) Inc and Hellman & Friedman.

Buoyant capital markets and rising company valuations allowed Blackstone to cash out a lot of its investments. Total asset sales reached $19.6 billion, including the $2.9 billion divestment of its portfolio of warehouse and logistics assets in Australia.

"We remain focused on our high-conviction thematic areas, such as sustainability, logistics, digital infrastructure, housing and the post-COVID travel recovery," Blackstone President Jonathan Gray said during an earnings call with analysts.

The buyout firm said its private equity portfolio grew 13.8% in the second quarter, compared with a 8.2% rise in the benchmark S&P 500 stock index over the same period. Opportunistic and core real estate funds rose 9.4% and 5.7%, respectively.

Last week, Blackstone said it reached a $7.3 billion agreement with insurer American International Group Inc (NYSE:AIG) to buy a portfolio of rent-controlled apartments and a nearly 10% stake in a life and retirement unit that will be spun off from the insurance giant.

This will bring in an additional $50 billion in assets under management, pushing Blackstone's total insurance assets to $150 billion, Gray said. Blackstone is also one of the largest U.S. property landlords.

Blackstone said its net income under generally accepted accounting principles doubled to $1.3 billion, driven by a sharp rise in investment income.

Its total assets under management rose to $684 billion from $648.8 billion in the prior quarter. Unspent capital fell to $129.9 billion from $148.2 billion three months earlier owing to the pace of capital deployments.

Blackstone declared a quarterly dividend of 70 cents per share.

Blackstone doubles second quarter earnings on surging asset sales
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email