10-KPeriod: FY2022

Blackstone Inc. Annual Report, Year Ended Dec 31, 2022

Filed February 24, 2023For Securities:BX

Summary

Blackstone Inc.'s (BX) 2022 10-K filing reveals a challenging year marked by a significant decline in total revenues, primarily driven by a substantial drop in investment income due to market headwinds impacting unrealized appreciation across its segments, particularly Real Estate and Private Equity. Despite this, the company demonstrated resilience in its fee-related earnings, with management and advisory fees increasing due to growth in Fee-Earning Assets Under Management, especially in Real Estate and Credit & Insurance. Total Assets Under Management (AUM) saw a healthy increase to $974.7 billion, driven by strong inflows in Real Estate and Credit & Insurance, although Net Realizations experienced a decrease. The company's strategic focus on Perpetual Capital strategies continues to expand, representing a growing portion of its AUM and revenues. Blackstone maintained a strong liquidity position with significant cash reserves and an undrawn revolving credit facility. The company also declared dividends totaling $4.40 per share in 2022, reflecting its commitment to returning capital to shareholders.

Financial Highlights

42 data points
Beta

Revenue

$8.52B

Net Income

$1.75B

20.5% Net Margin

EPS (Diluted)

$2.36

Total Assets

$42.52B

Cash & Equivalents

$4.25B

Free Cash Flow

$6.10B

Financial Statements
Beta
Revenue$8.52B
Operating Expenses$4.97B
Interest Expense$317.23M
Net Income$1.75B
EPS (Basic)$2.36
EPS (Diluted)$2.36
Shares Outstanding (Basic)740.66M
Shares Outstanding (Diluted)740.94M

Key Highlights

  • 1Total Assets Under Management (AUM) grew to $974.7 billion as of December 31, 2022, up from $880.9 billion in 2021.
  • 2Total Revenues decreased significantly by 62% year-over-year to $8.5 billion in 2022, primarily due to a $15.6 billion decrease in Investment Income (Loss), largely driven by a $15.1 billion drop in Unrealized Investment Income (Loss).
  • 3Management and Advisory Fees, Net increased by 22% to $6.3 billion in 2022, driven by growth in Fee-Earning Assets Under Management in the Real Estate and Credit & Insurance segments.
  • 4Net Income Attributable to Blackstone Inc. decreased by 70% to $1.75 billion in 2022, compared to $5.86 billion in 2021.
  • 5The company declared dividends totaling $4.40 per share in 2022, an increase from $4.06 per share in 2021.
  • 6Blackstone maintained a strong liquidity position with $4.3 billion in Cash and Cash Equivalents and an undrawn revolving credit facility of $4.135 billion as of December 31, 2022.
  • 7The company's Fee Related Earnings remained strong, indicating the recurring revenue nature of its core asset management business.

Frequently Asked Questions

The primary driver for the significant decrease in total revenues was a substantial decline in Investment Income (Loss), which fell by $15.6 billion. This was largely due to a $15.1 billion decrease in Unrealized Investment Income (Loss), reflecting unfavorable market conditions that impacted the valuation of investments across segments like Real Estate and Private Equity.

Blackstone's Total Assets Under Management (AUM) increased by 11% to $974.7 billion as of December 31, 2022. This growth was primarily fueled by strong inflows in the Real Estate segment ($46.7 billion increase) and the Credit & Insurance segment ($21.3 billion increase).

Blackstone's intention is to pay a quarterly dividend representing approximately 85% of its share of Distributable Earnings, subject to adjustments by its board of directors. In 2022, the company declared total dividends of $4.40 per share, an increase from $4.06 per share in 2021, demonstrating a continued commitment to returning capital to shareholders.

Blackstone's Fee Related Earnings (FRE) remained robust, indicating the stable and recurring nature of its asset management business. For the Real Estate segment, FRE was $2.3 billion, largely flat year-over-year, while for Private Equity, it was $948.7 million, a slight increase. For Credit & Insurance, FRE saw a significant jump of 137% to $840.7 million, and for Hedge Fund Solutions, it decreased by 30% to $279.2 million. The strength in FRE highlights the company's ability to generate consistent revenue from its management and advisory fees, independent of investment realization events.