KuroishiThe group said on Thursday that it depends on its real estate and private equityand creditDriven by a surge in sales of business assets, distributable earnings in the second quarter nearly doubled compared to the same period last year.
Other listed private equity firms also experienced record increases in stock prices, as they used market valuation bubbles to cash out assets and reap huge profits. According to media reports, private equity firms such as TPG and L Catterton, which were previously cautious about going public, are now also considering following suit.
Blackstone's distributable earnings (that is, cash used to pay dividends to shareholders) increased from $548 million in the same period last year to $1.1 billion.
According to data compiled by Refinitiv, this meant that distributable earnings per share were 82 cents, exceeding analysts' average forecast of 78 cents.
Blackstone said its capital allocation reached a record 23.8 billion US dollars in the second quarter. The company also promised to invest an additional $28.5 billion to acquire a majority stake in medical provider Medline Industries Inc, as well as shares in companies such as Carlyle Group and Hellman & Friedman.
Active capital markets and rising company valuations have enabled Blackstone to cash out large investments. Total asset sales reached $19.6 billion, including $2.9 billion in Australian warehouses and logistics assets.
Blackstone President Jonathan Gray (Jonathan Gray) said during an earnings call with analysts: “We remain focused on subject areas we believe in, such as sustainability, logistics, digital infrastructure, housing, and travel recovery after the pandemic.”
The acquisition company said its private equity portfolio grew 13.8% in the second quarter, while the S&P 500 index rose 8.2% over the same period. Opportunistic funds and core real estate funds rose 9.4% and 5.7%, respectively.
Blackstone Group said last week that the company and insurance giantsAmerican International GroupA $7.3 billion agreement has been reached to buy a range of rent-controlled apartments and nearly 10% of the shares in the life and retirement business that will be divested from American International Group.
Gray said this will increase management assets by 50 billion US dollars and push Blackstone's total insurance assets to 150 billion US dollars. Blackstone Group is also one of the largest real estate owners in the US.
Blackstone said that net income according to GAAP doubled to 1.3 billion US dollars, driven by a sharp increase in investment income.
Total assets under management increased to $684 billion from $648.8 billion in the previous quarter. Unspent capital fell from $148.2 billion three months ago to $129.9 billion due to the speed at which funds were deployed.
Blackstone announced a quarterly dividend of 70 cents per share.