Weak Real Estate Business Weigh On Distributable Earnings

• Blackstone Inc (NYSE: BX) reported Q1 revenues of $2.49 billion, down 29% Y/Y and missing the consensus of $2.57 billion.

• Distributable earnings (DE) fell 36% Y/Y to $1.25 billion, mainly on a 58% Y/Y decline in DE from the real estate business.

• Blackstone has been limiting redemption at its flagship real estate income trust (BREIT) since 2022. Its opportunistic and core real estate funds depreciated by 0.4% and 1.6%, respectively in Q1.

• DE per share declined 37% Y/Y to $0.97, missing the consensus of $0.98.

• Fee-related earnings fell 9% to $1.04 billion on weak performance fees (-73% Y/Y).

• Fee-related earnings declined 25% Y/Y in the real estate segment but rose 21% Y/Y in private equity and 22% in Credit & Insurance busiensses.

• Net accrued performance revenue declined to $6.4 billion in Q1 2023 from $6.8 billion in Q4 2022 on realized distributions across strategies.

• Asset under management rose 8% Y/Y to $991.3 billion, with inflows of $40.4 billion in Q1.

• Dividend: Blackstone declared a quarterly dividend per share of $0.82 to be paid on May 8, 2023, to record shareholders as of May 1, 2023.

• Repurchase: The company repurchased $1.2 billion worth of stock, with shares available for authorization of $1.0 billion in Q1.

• Price Action: BX shares are trading lower by 0.51% at $92.08 on the last check Thursday.

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This article Blackstone Q1 Earnings Miss: Weak Real Estate Business Weigh On Distributable Earnings originally appeared on Benzinga.com

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