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 ...

Core Viewpoint - The REIT sector is expected to benefit from declining interest rates, which are anticipated to be cut over the next year, serving as a catalyst for recovery after a significant downturn due to rising rates [2][23]. REITs vs. Stocks - REITs are currently priced at their lowest valuations relative to the S&P 500 since 2008, trading at an average of 12.5x FFO compared to the S&P 500's 28x EPS [4][6]. - The market has unjustly punished REITs as if they were the only investments sensitive to interest rates, despite all investments being affected by rate changes [8][10]. - REITs generate substantial profits today and are less sensitive to rising interest rates compared to growth stocks, which are priced at historically high multiples [10][12]. REITs vs. Bonds/Treasuries - REITs offer a higher cash flow yield of approximately 8%, compared to Treasuries' yield of around 5%, creating a significant spread that benefits long-term investors [14]. - Fixed income investments do not provide protection against inflation, which diminishes real returns, while REITs are expected to perform better in a high-inflation environment [14]. - If interest rates are cut, REITs are likely to appreciate in value, presenting a missed opportunity for those who prioritize the safety of Treasuries over potential growth [14]. REITs vs. Private Real Estate - REITs are currently trading at significant discounts, with some smaller REITs priced at 30-50% below their fair market value, attracting private real estate investors [16][18]. - Blackstone has invested heavily in REITs, purchasing $17 billion worth in the current year, indicating confidence in their undervaluation relative to private real estate [16][18]. Investment Timing and Strategy - Historical trends suggest that the best time to invest in real estate is after a market crash when valuations are low, as REITs have consistently recovered from past downturns [18][20]. - Current low valuations, potential interest rate cuts, and decreasing new construction activity are expected to drive rent growth, creating a favorable environment for REITs [23].

DNY59 The real estate investment trust, or REIT, sector enjoyed some very good news over the past month, and it leads us to believe that the window of opportunity could be closing soon. Firstly, many central banks started to cut interest rates. Canada, the Eurozone, Switzerland, Hungary, Sweden, and the Czech Republic have already cut their rates, and England is expected to follow with its first cut in August. I think that this is a strong signal for what to expect in the US as well. The Fed will likely ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Blackstone Inc. (BX) reports results for the quarter ended June 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on July 18, 2024, might help the stock move higher if these key numbers are better than expec ...

Leonid Sorokin Introduction I doubt I'm breaking any news when I say the era of cheap money is over. The reason I'm bringing this up is that Bloomberg just published a huge article on Blackstone's (BX) $339 billion property arm, as the world's largest real estate investor is moving into riskier assets to find elevated returns. Bloomberg According to the article, Blackstone, which thrived when rates were low and acquisitions were cheap, is facing unprecedented challenges. Simply put, with global central bank ...

konkrete/iStock via Getty ImagesOn our previous coverage of Blackstone Mortgage Trust, Inc. (NYSE:BXMT), we felt that there was no real reason to be long this distressed mortgage REIT. We came to that conclusion by examining the macro setup and the compelling short thesis by Muddy Waters. We felt that the best risk-reward was via a slightly different options trade. They would, if this level of distress, extended uniformly to multifamily and other assets. We don't have any reason to believe that, and nor ...

NEW YORK, June 12, 2024 /PRNewswire/ -- Blackstone Liquid Credit Strategies LLC, an affiliate of Blackstone Alternative Credit Advisors LP (collectively, and together with their affiliates in the credit-focused business of Blackstone, Inc., "Blackstone Credit & Insurance"), recently announced monthly distributions for the three listed closed-end funds it advises, Blackstone Senior Floating Rate 2027 Term Fund (NYSE: BSL), Blackstone Long-Short Credit Income Fund (NYSE: BGX), and Blackstone Strategic Credit ...

Summary of Blackstone Inc. Conference Call Company Overview - **Company**: Blackstone Inc. (NYSE: BX) - **Industry**: Alternative Asset Management - **Assets Under Management**: Over $1 trillion [3][5] Macro Economic Insights - **US Economy**: Slowing growth due to higher interest rates; inflation perceived to be lower than reported by the Fed [5][6] - **Consumer Behavior**: Consumers are spending more as stock markets rise, indicating a level of prosperity [5][6] - **Global Economic Outlook**: - **Europe**: Experiencing a cycle of decreasing growth; slower than the US [7] - **Asia**: Mixed performance; India is highlighted as a strong market with 6% growth [7][8] - **China**: Facing real estate challenges but showing signs of bottoming out; government is implementing plans to stabilize the economy [8][10] Real Estate Market Analysis - **Commercial Real Estate**: - Different subcategories exist; office space is struggling with a 27% vacancy rate [12][13] - Blackstone has shifted focus from office spaces to warehouses and student housing, which are performing well [13][15] - New construction has decreased significantly, leading to potential future shortages and rent increases [14][15] - **Investment Strategy**: Blackstone is actively buying distressed assets, particularly in Europe, where many sellers are under financial pressure [16][17] Growth in Private Markets - **Institutionalization of Private Equity**: - Market share of institutions in private equity has grown from less than 1% to 25% over 40 years [19][22] - Blackstone's historical performance shows a 97% success rate in private equity deals [20][21] - **Private Credit**: - Currently at $421 billion, with potential to grow to $1 trillion [24][27] - Offers attractive returns with low default rates [24][25] AI and Data Centers - **AI Investment**: Blackstone is heavily investing in AI and data centers, viewing it as a revolutionary technology akin to the invention of electricity [28][30] - **Market Potential**: Anticipated $2 trillion investment in data centers by 2030, with significant demand for AI infrastructure [29][30] Company Culture and Leadership - **Employee Engagement**: Blackstone emphasizes a strong company culture, with regular communication and engagement initiatives [42][46] - **Hiring Practices**: Highly selective hiring process, receiving 62,000 applications for 109 positions [35][42] - **Leadership Philosophy**: Focus on maintaining excitement and engagement among employees to ensure a positive work environment [43][51] Conclusion - Blackstone remains optimistic about its growth trajectory, leveraging its strong capital position to capitalize on market dislocations and emerging trends in private equity, credit, and AI-driven investments [34][51]

Transaction Represents Important Simplification Milestone in Emerson's Portfolio TransformationST. LOUIS and NEW YORK, June 6, 2024 /PRNewswire/ -- Emerson (NYSE: EMR) announced today that it has entered into a definitive agreement to sell its remaining interests in the Copeland joint venture (formerly Emerson Climate Technologies) for a transaction value of approximately $3.5 billion, with pre-tax cash proceeds of $3.4 billion, net of the release of $0.1 billion of future indemnity obligations. Private equ ...

Richard Drury/DigitalVision via Getty Images Artificial intelligence continues to drive demand for electricity and those poised to deliver are positioned to capitalize on a once-in-a-lifetime gold rush. In addition to increased demand, AI is instigating a deceleration in gains of energy efficiency causing forward projections around electricity usage to deviate from historical trends. Data centers are one of the most highly impacted segments of this increased demand. Global data center power demand could ...