Summary
Blackstone Inc. reported a significant decline in revenue and net income for the nine months ended September 30, 2022, compared to the same period in 2021. This was primarily driven by a substantial decrease in Investment Income (Loss), particularly unrealized investment gains, which declined by $11.5 billion year-over-year. This decline was largely attributed to unfavorable market conditions, including inflation, rising interest rates, and geopolitical uncertainty, which impacted the valuations of the company's real estate and private equity investments. Despite the drop in overall investment income, Management and Advisory Fees increased by 25%, reflecting growth in fee-earning assets under management, particularly in the Real Estate and Credit & Insurance segments. Expenses also decreased, mainly due to lower performance allocation compensation, which is tied to investment income. The company maintained a strong liquidity position with $3.5 billion in cash and cash equivalents and a $4.1 billion revolving credit facility, and proactively managed its capital structure by issuing new senior notes. The company repurchased $392 million of its stock during the nine-month period, with $1.1 billion remaining under its authorized program.
Financial Highlights
40 data points| Revenue | $1.06B |
| Operating Expenses | $961.36M |
| Interest Expense | $80.51M |
| Net Income | $2.30M |
| Shares Outstanding (Basic) | 742.35M |
| Shares Outstanding (Diluted) | 742.50M |
Key Highlights
- 1Total Revenues decreased by 59% year-over-year for the nine months ended September 30, 2022, primarily due to a $11.5 billion decrease in Investment Income (Loss).
- 2Management and Advisory Fees, Net increased by 25% year-over-year for the nine months ended September 30, 2022, driven by growth in Fee-Earning Assets Under Management in the Real Estate and Credit & Insurance segments.
- 3Total Compensation and Benefits decreased by 54% year-over-year for the nine months ended September 30, 2022, largely due to a significant reduction in Performance Allocations Compensation, which is tied to investment performance.
- 4Segment Distributable Earnings increased by 140% year-over-year for the nine months ended September 30, 2022, reaching $750.1 million, driven by strong growth in Fee Related Earnings and Net Realizations within the Credit & Insurance segment.
- 5Fee Related Earnings across all segments increased by 70% year-over-year for the nine months ended September 30, 2022, indicating resilient recurring revenue generation.
- 6Total Assets Under Management grew by 18% year-over-year to $730.7 billion as of September 30, 2022, reflecting strong inflows across most segments.
- 7Blackstone repurchased approximately $392 million of its common stock and Holdings Partnership Units during the nine months ended September 30, 2022, with $1.1 billion remaining under its authorized repurchase program.