10-KPeriod: FY2023

Blackstone Inc. Annual Report, Year Ended Dec 31, 2023

Filed February 23, 2024For Securities:BX

Summary

Blackstone Inc. reported strong performance in its 2023 annual report, marked by a significant increase in Total Assets Under Management (AUM) to over $1 trillion, driven by inflows across its diverse business segments including Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions. While revenues saw a slight decrease of 6% year-over-year due to a $1 billion drop in Investment Income, this was largely offset by a 6% increase in Management and Advisory Fees, Net, reflecting robust growth in Fee-Earning Assets Under Management. The company maintained effective cost management, with total expenses remaining relatively flat year-over-year. Blackstone also reported a solid net income attributable to Blackstone Inc. of $1.39 billion, though down 20% from the prior year, impacted by lower investment income. The company's commitment to shareholder returns is evident in its dividend policy, aiming to distribute approximately 85% of its share of Distributable Earnings, alongside active share repurchases.

Financial Statements
Beta
Revenue$8.02B
Operating Expenses$4.98B
Interest Expense$431.87M
Net Income$1.39B
EPS (Basic)$1.84
EPS (Diluted)$1.84
Shares Outstanding (Basic)755.20M
Shares Outstanding (Diluted)755.42M

Key Highlights

  • 1Total Assets Under Management (AUM) surpassed $1 trillion, reaching $1.04 trillion by year-end 2023, up from $974.7 billion in 2022.
  • 2Fee-Earning Assets Under Management grew to $762.6 billion, an increase of $44.2 billion from the previous year, indicating strong fee-generating capacity.
  • 3Total Revenues were $8.0 billion, a 6% decrease year-over-year, primarily due to a $1 billion reduction in Investment Income (driven by lower realized gains), partially offset by a 6% increase in Management and Advisory Fees, Net.
  • 4Net Income Attributable to Blackstone Inc. was $1.39 billion, a decrease of 20% compared to $1.75 billion in 2022, largely due to the decline in Investment Income.
  • 5The company maintained its dividend policy, paying $3.35 per share in dividends for 2023, and continued its share repurchase program, with $756.8 million remaining available.
  • 6The Real Estate segment saw Fee-Earning AUM increase by $16.9 billion, driven by inflows in BREDS and BREIT, despite some outflows from BREIT.
  • 7The Credit & Insurance segment experienced Fee-Earning AUM growth of $25.7 billion, fueled by direct lending and liquid credit strategies, while Total Assets Under Management in this segment increased by $39.0 billion.

Frequently Asked Questions

Blackstone's overall financial performance in 2023 showed resilience despite a challenging market. Total AUM grew to over $1 trillion, and Fee-Earning AUM also increased, indicating continued business expansion. While total revenues decreased by 6% year-over-year due to lower investment income, Management and Advisory Fees, Net saw a 6% increase. Net income attributable to Blackstone Inc. was $1.39 billion, a decrease of 20% from 2022, primarily impacted by the decline in investment income.

Blackstone's four segments—Real Estate, Private Equity, Credit & Insurance, and Hedge Fund Solutions—all contributed to the growth in AUM. The Real Estate segment's Fee-Earning AUM increased by $16.9 billion, supported by inflows in BREDS and BREIT. The Credit & Insurance segment saw substantial growth in Fee-Earning AUM ($25.7 billion) and Total AUM ($39.0 billion), driven by its direct lending and credit strategies. Performance in Private Equity was resilient despite market volatility, and Hedge Fund Solutions demonstrated stable performance.

Blackstone aims to return capital to shareholders through a combination of dividends and share repurchases. The company intends to pay a quarterly dividend representing approximately 85% of its share of Distributable Earnings, subject to board discretion. Furthermore, Blackstone continued its share repurchase program in 2023, repurchasing $351.3 million of common stock and having $756.8 million remaining under its authorized program as of year-end.