10-QPeriod: Q3 FY2018

Blackstone Inc. Quarterly Report for Q3 Ended Sep 30, 2018

Filed November 7, 2018For Securities:BX

Summary

Blackstone Inc. (BX) reported its third-quarter 2018 financial results, showing a robust increase in total revenues to $1.93 billion, up 11% year-over-year, driven by strong performance across its segments, particularly Private Equity and Real Estate. Net income attributable to The Blackstone Group L.P. rose by 17% to $442.7 million, with diluted earnings per common unit at $0.64. The company's Assets Under Management (AUM) demonstrated significant growth, reaching $456.7 billion, a 4% increase from the previous quarter and an 18% increase year-over-year, reflecting continued success in capital raising and investment deployment. Fee-earning AUM also saw a healthy increase, highlighting the growth in revenue-generating assets. The company's liquidity position remains strong, with substantial cash reserves and access to a revolving credit facility. Blackstone also continued its unit repurchase program, repurchasing $218.4 million worth of common units in the third quarter, underscoring its commitment to returning capital to shareholders. The company's diversified business segments and strong AUM growth position it favorably within the alternative asset management industry.

Financial Highlights

35 data points
Beta

Revenue

$1.93B

Net Income

$442.74M

23.0% Net Margin

EPS (Diluted)

$0.64

Total Assets

$30.46B

Cash & Equivalents

$1.94B

Free Cash Flow

$1.32B

Financial Statements
Beta
Revenue$1.93B
Operating Expenses$1.02B
Interest Expense$41.35M
Net Income$442.74M
EPS (Basic)$0.65
EPS (Diluted)$0.64
Shares Outstanding (Basic)682.44M
Shares Outstanding (Diluted)1.21B

Key Highlights

  • 1Total Revenues increased by 11% year-over-year to $1.93 billion.
  • 2Net Income Attributable to The Blackstone Group L.P. increased by 17% year-over-year to $442.7 million.
  • 3Diluted Net Income Per Common Unit was $0.64.
  • 4Total Assets Under Management (AUM) grew to $456.7 billion, up 4% from the prior quarter and 18% year-over-year.
  • 5Fee-Earning Assets Under Management increased to $342.3 billion.
  • 6The company repurchased $218.4 million of its common units during the quarter.
  • 7Strong performance in Private Equity and Real Estate segments contributed significantly to revenue growth.

Frequently Asked Questions

Blackstone reported strong financial performance in Q3 2018, with total revenues increasing by 11% year-over-year to $1.93 billion. Net income attributable to The Blackstone Group L.P. grew by 17% to $442.7 million, and diluted earnings per common unit were $0.64. The company also saw significant growth in its Assets Under Management (AUM), which reached $456.7 billion.

Blackstone's AUM demonstrated robust growth, reaching $456.7 billion by the end of Q3 2018. This represents a 4% increase from the prior quarter and an 18% increase compared to the same period in the previous year. This growth was driven by strong capital inflows and positive market appreciation across its various segments.

The filing indicates strong performance across most segments. Private Equity and Real Estate showed significant revenue growth, driven by capital deployment and asset appreciation. Hedge Fund Solutions experienced a slight revenue decrease primarily due to lower performance revenues and a shift in investment mix. The Credit segment saw a revenue decrease primarily due to the conclusion of a sub-advisory relationship and lower returns in certain strategies, though new initiatives like BIS and Harvest are contributing to growth.

Blackstone continued its unit repurchase program in Q3 2018, repurchasing $218.4 million of its common units. Additionally, the company announced its intention to distribute approximately 85% of its Distributable Earnings quarterly to common unitholders, demonstrating a commitment to returning capital to its investors.