[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 ...

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 ...