Blackstone beats earnings expectations in third quarter

NEW YORK - Blackstone (NYSE:BX) reported stronger-than-expected third quarter earnings on Thursday, as the world’s largest alternative asset manager continued to benefit from robust fund-raising momentum across its major investment channels.

Blackstone shares edged up 0.3% in pre-market trading following the results.

The asset management giant posted distributable earnings of $1.52 per share, significantly exceeding analyst expectations of $1.24. Revenue for the quarter came in at $3.09 billion, slightly below the consensus estimate of $3.2 billion.

Fee-related earnings, a key metric that measures Blackstone’s ability to generate recurring revenue, rose to $1.5 billion ($1.20 per share) in the quarter, representing a 26% increase from the same period last year.

"Blackstone reported an exceptional third quarter, highlighted by outstanding financial results and robust fund-raising momentum across our three major channels – institutions, insurance and individuals," said Stephen A. Schwarzman, Chairman and Chief Executive Officer of Blackstone.

The company reported inflows of $54.2 billion during the quarter and $225.4 billion over the last twelve months, demonstrating continued strong investor demand for alternative investments. Total assets under management reached $1.24 trillion, up 12% YoY, with fee-earning assets under management rising 10% to $906.2 billion.

Investment performance was mixed across segments. The firm’s opportunistic real estate funds declined 0.6% in the quarter, while corporate private equity appreciated 2.5%. Infrastructure investments performed particularly well, appreciating 5.2% during the quarter.

Blackstone deployed $26.6 billion in new investments during the quarter while generating $30.6 billion in realizations from asset sales and other exit events.

The company declared a quarterly dividend of $1.29 per share, payable on November 10 to shareholders of record as of November 3.

"The leading platforms we’ve established in key growth areas, such as digital and energy infrastructure, are helping power investment performance for our clients and position us extraordinarily well for the future," Schwarzman added.

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