These companies offer solid return prospects and above-average yields.The S&P 500 includes world-class companies with solid return prospects, but income investors might be dissatisfied with the index's current average yield of 1.3% -- the lowest in over 20 years.Some of the best companies in the index demonstrate solid business performance while also offering better dividend yields. Here are two such stocks that have what it takes to continue rewarding investors for years to come.1. Coca-ColaCoca-Cola (KO 1 ...

Richard Drury As I suspected months ago, Blackstone Mortgage Trust, Inc. (NYSE:BXMT) finally decided to cut its dividend amid continual problems in its loan portfolio. Blackstone Mortgage suffered a further decline in its performing loan percentage in the second quarter and chose to respond to the resulting deterioration of its portfolio quality by cutting its dividend by 24%. The move will save the company some cash, approximately $100M annually, and the distribution coverage metrics are set to improve as ...

Core Viewpoint - Blackstone Mortgage Trust, Inc. (BXMT) has faced significant challenges, leading to a downgrade to "Sell" due to poor financial performance and a distribution cut, indicating a lack of stability and potential risks for investors [2][3][16]. Financial Performance - The distributable EPS for Q2 2024 was reported at 49 cents per share, down from the previous distribution of 62 cents, highlighting a significant decline in earnings [3][10]. - GAAP EPS was negative 35 cents, indicating further financial distress and additional charge-offs related to current expected credit losses (CECL) [3][10]. - Interest income has peaked, and the company is likely to face more challenges with potential Federal Reserve rate cuts on the horizon [4][5]. Distribution and Coverage - The new distribution is barely covered by the distributable EPS, raising concerns about the sustainability of future distributions [4][5]. - The loan-to-value (LTV) ratio stands at 63%, but this figure does not provide adequate stability due to significant declines in asset values, particularly in the office sector [5][6]. Balance Sheet and Leverage - BXMT's liabilities exceed total equity by over 4.5 times, with total liabilities amounting to $18.6 billion, despite a $1 billion reduction over the past year [7][9]. - The CECL reserves total $5.21 per share, which is considered minor in the context of the company's overall financial health [6][9]. Market Outlook - The office sector has seen value declines of 40%-60%, suggesting that much of BXMT's portfolio may be underwater, which is not fully reflected in the current financial statements [6][11]. - The company is expected to face significant refinancing challenges ahead, particularly as many loans are currently at low interest rates [15][16]. Investment Recommendation - The current financial metrics and market conditions suggest that BXMT is not a viable investment opportunity, with a recommendation to sell until the stock price drops below $12.00 per share [16].

NoDerog Introduction If you ever played Monopoly, you probably know there's a point in the game where you know it's game over. Once someone has bought enough hotels, it's over for the others. The moment someone has enough cash flow, they become invincible, capable of withstanding any "rent" charges, and able to buy any property that's for sale. Although the real world is very different from the Monopoly game, it feels like the Blackstone Inc. (NYSE:BX) figured out how to get ahead many years ago, as it ...

Loading...Loading...Blackstone Inc BX reported an increase in earnings for its second quarter fiscal year 2024 on Thursday.The company posted adjusted revenues of $2.796 billion, beating the consensus of $2.619 billion. Distributable earnings per share of 96 cents (+3% Y/Y), missing the consensus of 98 cents, according to data from Benzinga Pro.Asset under management rose 7% Y/Y to $1.076 trillion, with inflows of $39.4 billion in the quarter.Blackstone declared a quarterly dividend per share of $0.82, paya ...

Financial Data and Key Metrics Changes - The company reported GAAP net income of $948 million for Q2 2024, with distributable earnings of $1.3 billion or $0.96 per common share, and declared a dividend of $0.82 [6][31] - Total AUM increased by 7% year-over-year to $1.1 trillion, with inflows of $39 billion in the quarter and $151 billion over the last 12 months [31] - Fee-related earnings (FRE) were $1.3 billion in Q2, up 3% year-over-year, marking the 11th consecutive quarter of FRE over $1 billion [33] Business Line Data and Key Metrics Changes - The credit and insurance business had a busy quarter with $21 billion invested or committed, including global direct lending and infrastructure [20] - In private equity, new commitments included acquisitions in Japan, the UK, and India, with a total deployment of $34 billion in Q2, up 73% year-over-year [20][31] - Real estate saw nearly $15 billion deployed in the first half of the year, approximately 2.5 times the same period last year, with a focus on logistics, rental housing, and data centers [21][22] Market Data and Key Metrics Changes - The company noted a significant decline in new construction starts, down 40% to 70% year-over-year across various asset classes, which is expected to positively impact long-term values [16][22] - The office sector remains under pressure, with vacancy rates in the mid-20s, while logistics and rental housing maintain lower vacancy rates of 5% to 6% [22][72] Company Strategy and Development Direction - The company is positioning itself as a leading financial investor in AI infrastructure, with expectations of $1 trillion in capital expenditures in the U.S. over the next five years for data centers [12][14] - Blackstone plans to launch several new products in the private wealth channel and expand its infrastructure platform globally [18][24] - The firm aims to leverage its scale and expertise in credit and insurance to capitalize on the growing demand for private credit strategies [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable environment for investment, anticipating a significant realization cycle as interest rates decline [7][38] - The firm expects a material step-up in FRE in Q4 2024, driven by the exit of fee holidays for several flagship funds and scheduled crystallization events [39][40] - Management highlighted the importance of long-term trends in digitalization, life sciences, and energy transition as key drivers of future value [58] Other Important Information - The company has a robust ongoing dialogue with major data center customers and is actively providing capital to AI-related companies [13][14] - The firm has raised over $8 billion for its latest opportunistic European fund and $5 billion for its latest real estate debt fund, indicating strong momentum in private wealth [23][47] Q&A Session Summary Question: Insights on investment activity and future deployment - Management noted positive signs in investment activity, with $19 billion committed at the end of the quarter and increased transaction activity across equity strategies [42][44] Question: Outlook for real estate fundraising - Management acknowledged investor caution in real estate but indicated improved sentiment and potential for significant capital inflows as performance differentiates [46][48] Question: Update on bank partnerships and asset-backed finance - Management highlighted a growing interest in asset-backed finance, with significant opportunities in the market and ongoing partnerships with banks [51][53] Question: Impact of the upcoming U.S. election on deployment - Management emphasized that economic factors, particularly inflation, will be more critical than the election outcome in determining market performance [56][58] Question: FRE margin outlook for 2025 - Management expects stability in FRE margins in the near term, with potential for operating leverage and growth as funds exit fee holidays [60][62] Question: Update on the secondary business and fundraising confidence - Management expressed confidence in the secondary business due to structural inefficiencies and strong historical returns, anticipating larger fundraising for the next vintage [66][68]

Blackstone’s (BX) second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure reflects a decline of 3.2% from the prior-year quarter.Shares of the company lost 1.5% in the pre-market trading. However, a full day’s trading session will depict a clearer picture.Results were primarily hurt by an increase in GAAP expenses. Nevertheless, a rise in segment revenues and improvement in the assets under management (AUM) balance were tailwinds.Net incom ...

Blackstone Inc. (BX) came out with quarterly earnings of $0.96 per share, missing the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.03%. A quarter ago, it was expected that this investment manager would post earnings of $0.98 per share when it actually produced earnings of $0.98, delivering no surprise.Over the last four quarters, the company ...

[Blackstone Reports Second Quarter 2024 Results](index=1&type=section&id=Blackstone%20Reports%20Second%20Quarter%202024%20Results) Blackstone's Q2 2024 results highlight strong capital activity, strategic investments in digital and energy infrastructure, and a declared dividend [Executive Summary](index=1&type=section&id=Executive%20Summary) Blackstone reported strong Q2 capital activity, including nearly $40 billion in inflows and $34 billion in deployment, with strategic investments in digital and energy infrastructure for AI, and declared a $0.82 per share dividend - Inflows reached nearly **$40 billion**, and deployment was **$34 billion**, marking the highest investment activity in two years[2](index=2&type=chunk) - The company is strategically investing in digital and energy infrastructure to capitalize on the growth driven by artificial intelligence[2](index=2&type=chunk) - A quarterly dividend of **$0.82 per share** was declared, payable on August 5, 2024, to record holders as of July 29, 2024[3](index=3&type=chunk) [GAAP Financial Results](index=4&type=section&id=GAAP%20Financial%20Results) Blackstone reported Q2 2024 GAAP Net Income of $948 million, a decrease from the prior year, with total revenues remaining relatively flat at approximately $2.8 billion Q2 2024 GAAP Financial Performance | Metric | 2Q'24 | 2Q'23 | | :--- | :--- | :--- | | Total Revenues | **$2,796 million** | **$2,815 million** | | Net Income | **$948 million** | **$1,204 million** | | Net Income Attributable to Blackstone Inc. | **$444 million** | **$601 million** | | Diluted Net Income Per Share | **$0.58** | **$0.79** | - Year-to-date GAAP Net Income for 2024 was **$2.5 billion**, a significant increase from **$1.4 billion** in the first half of 2023[8](index=8&type=chunk)[9](index=9&type=chunk) [Key Financial & Capital Metrics](index=6&type=section&id=Key%20Financial%20%26%20Capital%20Metrics) In Q2 2024, Blackstone generated $1.1 billion in Fee Related Earnings and $1.3 billion in Distributable Earnings, with Total Assets Under Management growing to $1.076 trillion and increased share repurchase authorization Q2 2024 Key Performance Metrics | Metric | Q2 2024 Value | LTM Value | | :--- | :--- | :--- | | Fee Related Earnings (FRE) | **$1.1 billion** ($0.91/share) | **$4.4 billion** ($3.64/share) | | Distributable Earnings (DE) | **$1.3 billion** ($0.96/share) | **$5.1 billion** ($3.99/share) | | Total AUM | **$1,076.4 billion** | - | | Inflows | **$39.4 billion** | **$151.5 billion** | | Deployment | **$33.7 billion** | **$101.8 billion** | | Realizations | **$23.5 billion** | **$69.1 billion** | - Total AUM increased by **7% year-over-year** to **$1.076 trillion**, while Fee-Earning AUM grew **11%** to **$808.7 billion**[10](index=10&type=chunk)[11](index=11&type=chunk) - The company repurchased **2.0 million common shares** in the quarter and increased its share repurchase authorization to **$2.0 billion**[10](index=10&type=chunk) [Investment Performance and Capital Metrics](index=8&type=section&id=Investment%20Performance%20and%20Capital%20Metrics) Blackstone's Q2 2024 investment performance varied, with Infrastructure appreciating 6.3% and Private Credit returning 4.2%, supported by robust capital activity and $181.0 billion in dry powder Q2 2024 Investment Performance (Appreciation / Gross Returns) | Strategy | 2Q'24 | LTM | | :--- | :--- | :--- | | Real Estate - Opportunistic | **0.3%** | **(5.3)%** | | Real Estate - Core+ | **0.1%** | **(3.1)%** | | Private Equity - Corporate | **2.0%** | **11.3%** | | Infrastructure | **6.3%** | **21.6%** | | Private Credit | **4.2%** | **18.1%** | | Liquid Credit | **1.9%** | **11.4%** | - Net Accrued Performance Revenues rose to **$6.2 billion** ($5.08/share) at the end of the quarter[12](index=12&type=chunk)[14](index=14&type=chunk) - Total undrawn capital (Dry Powder) available for future investments is **$181.0 billion**, with the largest portion in Private Equity (**$79.4 billion**) and Real Estate (**$59.5 billion**)[20](index=20&type=chunk) [Segment Highlights](index=12&type=section&id=Segment%20Highlights) This section details the performance and key metrics across Blackstone's core investment segments [Segment Distributable Earnings Composition](index=13&type=section&id=Segment%20Distributable%20Earnings%20Composition) In Q2 2024, Total Segment Distributable Earnings reached $1.4 billion, primarily driven by strong contributions from Real Estate and Private Equity segments Q2 2024 Segment Distributable Earnings | Segment | Q2 2024 DE ($M) | LTM DE ($M) | | :--- | :--- | :--- | | Real Estate | **$517 million** | **$2,224 million** | | Private Equity | **$486 million** | **$1,919 million** | | Credit & Insurance | **$354 million** | **$1,262 million** | | Multi-Asset Investing | **$63 million** | **$317 million** | | **Total** | **$1,419 million** | **$5,722 million** | [Real Estate](index=14&type=section&id=Real%20Estate) The Real Estate segment's AUM grew 1% to $336.1 billion, with $9.8 billion deployed, though Segment Distributable Earnings decreased 19% due to lower Fee Related Performance Revenues - Key deployments included the privatizations of **Apartment Income REIT Corp.** and **Tricon Residential**[22](index=22&type=chunk) Real Estate Segment Performance (Q2 2024 vs Q2 2023) | Metric | 2Q'24 | % Change YoY | | :--- | :--- | :--- | | Total AUM | **$336.1 billion** | **+1%** | | Segment DE | **$516.5 million** | **-19%** | | Fee Related Earnings | **$481.3 million** | **-18%** | | Capital Deployed | **$9.8 billion** | - | | Realizations | **$5.5 billion** | - | - Appreciation was modest, with Opportunistic funds up **0.3%** and Core+ funds up **0.1%** for the quarter[22](index=22&type=chunk) [Private Equity](index=15&type=section&id=Private%20Equity) The Private Equity segment's AUM increased 8% to $330.6 billion, deploying $11.3 billion, and Segment Distributable Earnings grew 16% driven by a 73% increase in Realized Performance Revenues - Deployed **$11.3 billion** in investments including Adevinta, Civica, and Tropical Smoothie Cafe, and committed an additional **$9.2 billion** to companies like CoreWeave[24](index=24&type=chunk) Private Equity Segment Performance (Q2 2024 vs Q2 2023) | Metric | 2Q'24 | % Change YoY | | :--- | :--- | :--- | | Total AUM | **$330.6 billion** | **+8%** | | Segment DE | **$485.8 million** | **+16%** | | Fee Related Earnings | **$278.1 million** | **+1%** | | Realized Perf. Revenues | **$381.8 million** | **+73%** | - Corporate Private Equity funds appreciated **2.0%** in the quarter, while Infrastructure funds appreciated **6.3%**[24](index=24&type=chunk) [Credit & Insurance](index=16&type=section&id=Credit%20%26%20Insurance) The Credit & Insurance segment's AUM grew 14% to $330.1 billion with $18.6 billion in inflows, and Segment Distributable Earnings surged 51% due to strong Fee Related Earnings and Net Realizations - Inflows were strong at **$18.6 billion**, including **$8.3 billion** for the global direct lending strategy and **$3.4 billion** raised for BCRED[26](index=26&type=chunk) Credit & Insurance Segment Performance (Q2 2024 vs Q2 2023) | Metric | 2Q'24 | % Change YoY | | :--- | :--- | :--- | | Total AUM | **$330.1 billion** | **+14%** | | Segment DE | **$354.1 million** | **+51%** | | Fee Related Earnings | **$297.1 million** | **+29%** | | Realized Perf. Revenues | **$91.2 million** | **+115%** | - Private Credit generated a gross return of **4.2%** (**3.2% net**) and Liquid Credit had a gross return of **1.9%** (**1.8% net**) for the quarter[26](index=26&type=chunk) [Multi-Asset Investing](index=17&type=section&id=Multi-Asset%20Investing) The Multi-Asset Investing segment's AUM rose 7% to $79.6 billion, with its Absolute Return Composite outperforming the HFRX Global Hedge Fund Index, and Segment Distributable Earnings increasing 17% - The Absolute Return Composite's gross return of **2.1%** significantly outperformed the HFRX Global Hedge Fund Index return of **0.4%** for the quarter[29](index=29&type=chunk) Multi-Asset Investing Segment Performance (Q2 2024 vs Q2 2023) | Metric | 2Q'24 | % Change YoY | | :--- | :--- | :--- | | Total AUM | **$79.6 billion** | **+7%** | | Segment DE | **$63.0 million** | **+17%** | | Fee Related Earnings | **$54.6 million** | **+12%** | | Realized Perf. Revenues | **$16.4 million** | **+199%** | [Supplemental Details](index=18&type=section&id=Supplemental%20Details) This section provides additional financial details, including AUM rollforward, balance sheet information, and investment fund performance records [Assets Under Management Rollforward](index=20&type=section&id=Assets%20Under%20Management%20Rollforward) Total AUM increased 1% to $1.076 trillion in Q2 2024, driven by $39.4 billion in inflows, while Fee-Earning AUM grew 3% to $808.7 billion with strong net flows Total AUM Rollforward - Q2 2024 ($ in millions) | Category | Real Estate | Private Equity | Credit & Insurance | Total | | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | **$339,332 million** | **$320,810 million** | **$322,526 million** | **$1,061,263 million** | | Inflows | **$5,923 million** | **$12,102 million** | **$18,648 million** | **$39,377 million** | | Realizations | **($5,454 million)** | **($7,823 million)** | **($9,518 million)** | **($23,460 million)** | | Market Activity | **($63 million)** | **$6,390 million** | **$3,187 million** | **$11,051 million** | | **Ending Balance** | **$336,100 million** | **$330,590 million** | **$330,117 million** | **$1,076,372 million** | Fee-Earning AUM Rollforward - Q2 2024 ($ in millions) | Category | Real Estate | Private Equity | Credit & Insurance | Total | | :--- | :--- | :--- | :--- | :--- | | Beginning Balance | **$301,584 million** | **$179,354 million** | **$229,351 million** | **$781,398 million** | | Inflows | **$6,744 million** | **$26,998 million** | **$16,889 million** | **$53,043 million** | | **Ending Balance** | **$299,066 million** | **$200,487 million** | **$237,286 million** | **$808,657 million** | [Deconsolidated Balance Sheet and Shareholder Returns](index=21&type=section&id=Deconsolidated%20Balance%20Sheet%20and%20Shareholder%20Returns) As of June 30, 2024, Blackstone held $8.7 billion in cash and investments, maintained strong credit ratings, declared a $0.82 dividend, and repurchased 2.0 million common shares - Blackstone has **$8.7 billion** in total cash, cash equivalents, corporate treasury, and other investments, and maintains **A+/A+ ratings** from S&P and Fitch[35](index=35&type=chunk)[38](index=38&type=chunk) Deconsolidated Financial Position (June 30, 2024) | Item | Amount ($M) | | :--- | :--- | | Cash and Cash Equivalents | **$2,381 million** | | Corporate Treasury and Other Investments | **$6,367 million** | | Net Accrued Performance Revenues | **$6,214 million** | | **Cash and Net Investments** | **$17,668 million** | | Outstanding Debt (at par) | **$10,683 million** | - Declared a quarterly dividend of **$0.82 per common share**, based on **$0.96** of Distributable Earnings per common share for Q2 2024[46](index=46&type=chunk) - Repurchased **2.0 million common shares** in Q2 and increased the share repurchase authorization to **$2.0 billion**[48](index=48&type=chunk) [Investment Fund Performance Records](index=23&type=section&id=Investment%20Fund%20Performance%20Records) Blackstone's flagship funds, including BREP and BCP, have consistently delivered strong net IRRs of 15%, while perpetual capital strategies like BREIT and BCRED show annualized total net returns of 10% or more since inception Selected Drawdown Fund Family Performance (Net IRR) | Fund Family | Total Net IRR | | :--- | :--- | | Total Global BREP (Real Estate) | **15%** | | Total BREP Europe | **11%** | | Total BREP Asia | **8%** | | Total Corporate Private Equity | **15%** | | Total Tactical Opportunities | **12%** | | Total Credit Drawdown Funds | **10%** | Selected Perpetual Capital Strategies Performance (Annualized Total Net Return) | Strategy | Inception Year | Total Net Return | | :--- | :--- | :--- | | BREIT (Core+ Real Estate) | 2017 | **10%** | | BIP (Infrastructure) | 2019 | **16%** | | BCRED (U.S. Direct Lending) | 2021 | **10%** | [Reconciliations and Definitions](index=29&type=section&id=Reconciliations%20and%20Definitions) This section provides detailed reconciliations of GAAP to non-GAAP financial measures and defines key operating metrics and dividend policy [Reconciliation of GAAP to Non-GAAP Measures](index=30&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details the adjustments from GAAP Net Income to non-GAAP measures like Distributable Earnings and Fee Related Earnings, accounting for unrealized items and consolidation effects - A detailed reconciliation from GAAP Net Income to Distributable Earnings is provided, showing adjustments for unrealized gains/losses, equity-based compensation, and consolidation impacts[52](index=52&type=chunk) - Fee Related Earnings (FRE) is derived by adjusting Total Segment Distributable Earnings for realized performance revenues, realized performance compensation, and realized principal investment income[52](index=52&type=chunk) [Key Definitions and Dividend Policy](index=40&type=section&id=Key%20Definitions%20and%20Dividend%20Policy) Blackstone defines its core non-GAAP metrics, including Segment Distributable Earnings, Distributable Earnings, and Fee Related Earnings, and outlines its dividend policy targeting approximately 85% payout of Distributable Earnings - Distributable Earnings (DE) is a key metric used to assess performance and amounts available for dividends, representing the sum of Segment DE and Net Interest/Dividend Income, less Taxes and Related Payables[66](index=66&type=chunk) - Fee Related Earnings (FRE) measures profits from recurring revenue streams and is not subject to future realization events[66](index=66&type=chunk) - The dividend policy targets paying approximately **85%** of Blackstone Inc.'s share of Distributable Earnings, though the final amount is at the discretion of the board of directors[68](index=68&type=chunk)

Blackstone (BX) is scheduled to report second-quarter 2024 results on Jul 18, before the opening bell. Its revenues and earnings are likely to have improved in the to-be-reported quarter on a year-over-year basis.In the last reported quarter, the company’s earnings were in line with the Zacks Consensus Estimate. Results benefited from a rise in segment revenues and improvement in the assets under management (AUM) balance. However, higher GAAP expenses hurt the results to some extent.Blackstone has a decent ...