Blackstone's earnings more than double on strong asset sales
Reuters
Published Oct 21, 2021 07:35AM ET
Updated Oct 21, 2021 11:31AM ET
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.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.