01—Abstract
Summary
Summary of the 10-K filed February 28, 2020. Cited figures are marked; the original filing is the authoritative source.
Blackstone Inc. (BX) reported robust financial performance for the fiscal year ending December 31, 2019.
The company, a leading global investment firm, saw its total assets under management (AUM) grow to $571.1 billiona. Revenues increased by 7% to $7.3 billion, primarily driven by strong performance in its Investment Income and Management and Advisory Fees segments. Net income attributable to The Blackstone Group Inc. saw a significant increase of 33% to $2.05 billion.
The company benefited from growth across its four key segments: Real Estate, Private Equity, Hedge Fund Solutions, and Credit, with notable increases in Fee Related Earnings and Net Realizations. Blackstone's strong financial footing is supported by ample liquidity, with $2.2 billionb in cash and cash equivalents and $2.4 billion in corporate treasury investments as of December 31, 2019. The company also continued its share repurchase program, demonstrating a commitment to returning value to shareholders.
02—Key points
Key Highlights
- Total Assets Under Management (AUM) grew to $571.1 billion by December 31, 2019.
- Total Revenues increased by 7% to $7.3 billion in 2019, driven by growth in Investment Income and Management and Advisory Fees.
- Net Income Attributable to The Blackstone Group Inc. rose by 33% to $2.05 billion.
- Fee Related Earnings increased by 18% in the Real Estate segment and 50% in the Private Equity segment, demonstrating strong recurring revenue generation.
- Net Realizations showed a 2% increase in Real Estate and a 229% increase in Hedge Fund Solutions, indicating successful investment exits.
- Blackstone maintained a strong liquidity position with $2.2 billion in cash and cash equivalents and $2.4 billion in corporate treasury investments as of year-end 2019.
- The company repurchased $561.9 million of Class A common stock during 2019, reflecting a commitment to shareholder value.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 28, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $7.34B$6.83B | +7.4% |
| Operating Expenses | $3.96B$3.51B | +12.9% |
| Interest Expense | $199.65M$163.99M | +21.7% |
| Net Income | $2.05B$1.54B | +32.9% |
| EPS (Basic) | $3.03$2.27 | +33.5% |
| EPS (Diluted) | $3.03$2.26 | +34.1% |
| Shares Outstanding (Basic) | 675.90M678.85M | −0.4% |
| Shares Outstanding (Diluted) | 676.17M1.21B | −44.0% |
05—Questions
Frequently Asked Questions
What was Blackstone's total Assets Under Management (AUM) at the end of 2019?
As of December 31, 2019, Blackstone's total Assets Under Management (AUM) reached $571.1 billion.
How did Blackstone's revenues change in 2019 compared to 2018?
Blackstone's total revenues increased by 7% from $6.8 billion in 2018 to $7.3 billion in 2019.
What drove the increase in Blackstone's Investment Income in 2019?
The increase in Investment Income was primarily driven by higher net appreciation of investment holdings in its Real Estate segment (BREP opportunistic funds), stronger returns in its Credit segment, and higher net appreciation of investments in its Hedge Fund Solutions segment.
What is Blackstone's dividend policy for Class A common stock?
Blackstone's intention is to pay a quarterly dividend representing approximately 85% of its share of Distributable Earnings, subject to adjustments by the board of directors for business needs, investments, legal compliance, debt instruments, future cash requirements, and other factors. The declaration and payment of dividends remain at the sole discretion of the board.
06—Continue