Summary
Blackstone Inc. reported its third-quarter 2019 financial results, highlighting a notable shift in its revenue mix and a significant increase in its balance sheet. Total revenues for the quarter decreased by 10% year-over-year to $1.7 billion, primarily driven by a 34% decline in investment income, which was partially offset by an increase in management and advisory fees. This shift indicates a growing reliance on recurring fee-based income, a positive sign for stability. The company's total assets grew by 12% to $32.4 billion, reflecting a healthy expansion of its investment portfolio, including a significant increase in right-of-use assets due to new lease accounting standards. Expenses decreased by 7% year-over-year to $947.2 million, largely due to lower performance allocation compensation. Net income attributable to Blackstone Inc. increased by 76% to $779.4 million, driven by a one-time tax benefit related to its corporate conversion. Overall, Blackstone demonstrated strong growth in its fee-related earnings and a robust increase in assets under management across its core segments.
Financial Highlights
38 data points| Revenue | $1.74B |
| Operating Expenses | $947.22M |
| Interest Expense | $53.36M |
| Net Income | $779.44M |
| EPS (Basic) | $1.15 |
| EPS (Diluted) | $1.15 |
| Shares Outstanding (Basic) | 675.96M |
| Shares Outstanding (Diluted) | 676.22M |
Key Highlights
- 1Total revenues for the third quarter of 2019 were $1.7 billion, a 10% decrease compared to the prior year quarter, primarily due to a significant drop in investment income.
- 2Management and advisory fees, net, increased by 14% year-over-year to $332.5 million for the Real Estate segment and saw an overall increase across all segments, indicating growth in recurring revenue streams.
- 3Net income attributable to The Blackstone Group Inc. rose by 76% year-over-year to $779.4 million, largely driven by a tax benefit recognized in connection with its corporate conversion.
- 4Total assets under management increased by 15% year-over-year to $394.1 billion, with substantial growth across all segments, particularly Private Equity and Real Estate.
- 5The company completed a corporate conversion from a limited partnership to a Delaware corporation effective July 1, 2019, which resulted in a significant tax benefit.
- 6Blackstone repurchased $136.0 million of Class A common stock during the quarter, demonstrating a commitment to returning capital to shareholders.
- 7The company issued $500 million in senior notes maturing in 2030 and $400 million in senior notes maturing in 2049, strengthening its balance sheet and managing its debt profile.