Blackstone's Dividend Falls 13% To $1.12 A Share As Profit From Asset Sales Shrinks
Fee profit rose 6% in the third quarter, but realized performance revenues dropped 38% and assets under management grew 10%.
Blackstone declared a quarterly dividend of $1.12 per share, down 13% from $1.29 in the third quarter of last year, in an 8-K filed Thursday. The cut tracks distributable earnings, the cash profit that funds the payout, which fell 9% to $1.7 billion, or $1.32 per share.
What the results show
Distributable earnings were $1,715.7 million, against $1,889.5 million a year earlier. Per common share, they dropped 13% from $1.52 to $1.32.
The drag was realized performance revenues, the fees earned when funds sell investments. They fell 38% to $464.4 million. Fee related earnings, the profit from recurring fees, rose 6% to $1.6 billion, or $1.26 per share.
On a standard accounting basis, net income attributable to Blackstone was $662 million, or $0.83 per share, up from $0.80 a year earlier.
The dividend is payable November 9 to holders of record on November 2. After retained capital, the payout is set from distributable earnings per share: $1.32 less $0.20 leaves $1.12.
Growth underneath the decline
Total assets under management rose 10% from a year earlier to $1,368.3 billion. Inflows reached $63.3 billion in the quarter and $271.6 billion over the last twelve months.
Blackstone deployed $30.1 billion and realized $33.1 billion in the quarter. Dry powder, capital raised but not yet invested, stood at $228.9 billion.
By segment, private equity assets rose 18% to $465.4 billion and credit and insurance rose 11% to $480.0 billion. Real estate assets fell 4% to $309.0 billion, and its fee related earnings fell 9%.
Chairman and CEO Stephen A. Schwarzman said the firm delivered "strong third-quarter results amid a volatile external environment."
Cash and shareholder returns
Blackstone ended the quarter with $13.2 billion in cash, corporate treasury and other investments. It has a $4.3 billion credit revolver, with $3.6 billion undrawn.
It said $1.5 billion will go to shareholders for the quarter through dividends and buybacks. It repurchased 0.2 million shares in the quarter, with $1.6 billion of authorization remaining.
Blackstone's stock closed at $109.57 on Wednesday, before the report.
Management hosts its third-quarter investor webcast Thursday at 9:00 a.m. ET, with a replay on the company's investor site.
Sources
- 8-K Filing — Blackstone Inc. (BX) — SEC EDGAR
- Exhibit d160590dex991.htm — Blackstone Inc. 8-K exhibit — SEC EDGAR
