Written by Chibuike Oguh
NEW YORK (Reuters) – Blackstone Group LP said on Wednesday that third-quarter profit rose 9% year-over-year as the world’s largest manager of alternative assets such as private equity and real estate took advantage of rising corporate valuations. to cash out some of their leverage foreclosure investments.
Retained earnings – cash available to pay dividends to shareholders – were $ 772 million compared to $ 710 million a year earlier. This resulted in earnings per share, which can be distributed, at 63 cents, which is above analysts’ average estimates of 57 cents, according to data collected by Refinitiv.
Blackstone said its private investment portfolio grew 12.2% in the third quarter compared to an 8.5% rise in the S&P 500 benchmark index over the same period. Occupational and fixed assets of real estate grew by 6.4% and 3.5% respectively.
During the quarter, Blackstone completed the $ 7 billion sale of Cheniere Energy Partners to Brookfield Asset Management and Blackstone Infrastructure Partners. It has also completed an initial public offering of $ 625 million, India’s second real estate investment trust, Mindspace Business Parks.
“Blackstone reported excellent results in the third quarter, characterized by strong investment performance and revenue growth,” Blackstone CEO Stephen Schwartzman said in a statement.
According to the Generally Accepted Accounting Principles (GAAP), Blackstone reported a net profit of $ 794.7 million as the increase in investment income was partially offset by compensation costs.
Total assets under management rose to $ 584.4 billion at the end of September from $ 564.3 billion in the previous quarter due to strong fundraising. At the end of September, Blackstone had $ 152.4 billion in unspent capital.
Blackstone said it would pay quarterly dividends of 54 cents a share.
Report by Chibuike Oguh in New York; Edited by David Holmes.
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