01—Abstract
Summary
Summary of the 10-K filed February 26, 2021. Cited figures are marked; the original filing is the authoritative source.
Blackstone Inc. (BX) reported total revenues of $6.1 billiona for the fiscal year ended December 31, 2020, a decrease of 17% from the previous year, primarily impacted by $1.5 billion lower investment income due to COVID-19 effects.
Despite the revenue decline, Management and Advisory Fees, Net increased by 18% to $4.1 billionb, driven by growth in the Real Estate and Private Equity segments. Total Assets Under Management (AUM) grew to $618.6 billion by year-end 2020, an increase of $47.4 billion, demonstrating the firm's continued ability to attract capital across its diversified business segments. The company's Fee Related Earnings (FRE) increased by 15% to $2.3 billion, indicating a growing base of recurring revenue.
Net income attributable to The Blackstone Group Inc. declined by 49% to $1.05 billionc, largely due to the decrease in investment income and a less favorable change in the Tax Receivable Agreement Liability. The company maintained a strong liquidity position with $2.0 billion in cash and cash equivalents and $2.6 billion in corporate treasury investments.
02—Key points
Key Highlights
- Total Revenues decreased by 17% to $6.1 billion for the year ended December 31, 2020, primarily due to a 42% decrease in Net Income Attributable to The Blackstone Group Inc. to $1.05 billion.
- Management and Advisory Fees, Net increased by 18% to $4.1 billion, driven by growth in Fee-Earning Assets Under Management, particularly in the Real Estate and Private Equity segments.
- Total Assets Under Management (AUM) increased by 8% to $618.6 billion as of December 31, 2020.
- Fee Related Earnings (FRE) increased by 15% to $2.3 billion, indicating a growing recurring revenue base.
- The company reported $2.0 billion in cash and cash equivalents and $2.6 billion in corporate treasury investments as of December 31, 2020, maintaining a strong liquidity position.
- The COVID-19 pandemic significantly impacted Investment Income (Loss), which decreased by 42% to $2.0 billion, mainly driven by declines in the Real Estate and Credit & Insurance segments.
- Blackstone continued its dividend policy, paying $2.26 per share in dividends for 2020.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2020filed February 26, 2021Financial Statements
FY2020 against FY2019
| Line item | FY2020FY2019 | Change |
|---|---|---|
| Revenue | $6.10B$7.34B | −16.8% |
| Operating Expenses | $3.48B$3.96B | −12.2% |
| Interest Expense | $166.16M$199.65M | −16.8% |
| Net Income | $1.05B$2.05B | −49.0% |
| EPS (Basic) | $1.50$3.03 | −50.5% |
| EPS (Diluted) | $1.50$3.03 | −50.5% |
| Shares Outstanding (Basic) | 696.93M675.90M | +3.1% |
| Shares Outstanding (Diluted) | 697.26M676.17M | +3.1% |
05—Questions
Frequently Asked Questions
How did Blackstone's financial performance fare in 2020?
Blackstone's total revenues decreased by 17% to $6.1 billion in 2020, largely due to a significant drop in investment income attributed to the COVID-19 pandemic. However, Management and Advisory Fees, Net saw a robust 18% increase, and Total Assets Under Management (AUM) grew to $618.6 billion, indicating the firm's resilience and continued capital raising success.
What was the impact of COVID-19 on Blackstone's results?
The COVID-19 pandemic had a material impact, particularly on investment income, which decreased by 42% due to lower valuations and realizations in certain sectors, especially within the Real Estate and Credit & Insurance segments. Despite these challenges, Fee Related Earnings (FRE) showed growth, demonstrating the strength of Blackstone's recurring revenue streams.
How is Blackstone's AUM trending?
Blackstone's Total Assets Under Management (AUM) continued to grow, reaching $618.6 billion by the end of 2020, an 8% increase from the prior year. This growth was driven by strong inflows across its Private Equity, Real Estate, and Credit & Insurance segments.
What is Blackstone's dividend policy?
Blackstone's intention is to pay quarterly dividends representing approximately 85% of its share of Distributable Earnings, subject to adjustments by the board of directors for business needs, investments, legal compliance, and future cash requirements. In 2020, the company paid total dividends of $2.26 per share.
06—Continue