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Blackstone's earnings more than double on strong asset sales

EconomyOct 21, 2021 11:31AM ET
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© 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

By Chibuike Oguh

(Reuters) -Blackstone Group Inc, the world's biggest manager of alternative assets such as private equity and real estate, said on Thursday its distributable earnings more than doubled in the third quarter to an all-time high.

Blackstone (NYSE:BX) and other private equity firms have capitalized on low interest rates and the economic recovery from the COVID-19 pandemic to sell many of their assets for top dollar.

The New York-based firm reported distributable earnings of $1.28 per share, up 112% from a year ago, exceeding the average Wall Street analyst estimate of 91 cents, according to Refinitiv. Its shares rose 3.5% to $133.25 on Thursday morning, giving the firm a market capitalization of more than $154 billion.

"We believe our portfolio overall is well-positioned for future cycles, including a likely scenario of rising interest rates," Blackstone Chief Executive Stephen Schwarzman told analysts on an earnings call.

Blackstone said it cashed out on $21.8 billion worth of assets during the quarter, including the sale of its stake in U.S. supply-chain software firm Blue Yonder to Japanese electronics giant Panasonic (OTC:PCRFY) Corp.

Blackstone also said it spent $37.1 billion on new investments, including the $6.7 billion privatization of data center operator QTS Realty (NYSE:QTS) Trust Inc and the acquisition of single-family rental company Home Partners of America in a $6 billion deal.

Blackstone said its private equity fund appreciated by 9.9% during the quarter, compared with a 0.23% rise in the S&P 500 index over the same period. Opportunistic and core real estate funds rose 16.2% and 7.6%, respectively.

Under generally accepted accounting principles (GAAP), Blackstone said its net income nearly doubled to $1.4 billion, driven by investment income. Its net accrued performance revenue, which represents paper profit that is yet to be cashed, reached $8.3 billion.

Blackstone's total assets under management rose to $730.7 billion, from $648.8 billion three months earlier. It ended the quarter with $127.2 billion of unspent capital and declared a quarterly dividend of $1.09 per share.

Blackstone's earnings more than double on strong asset sales

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Comments (1)
Roger Miller
Roger Miller Oct 21, 2021 11:33AM ET
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An economy that is still down millions of jobs and Wall Street is rolling in money thnaks to the Fed. More gravy coming with the Dems big spending.
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