Blackstone Q1 Earnings Miss: Weak Real Estate Business Weigh On Distributable Earnings

April 20, 2023

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Blackstone Inc (NYSE: BX) reported Q1 revenues of $2.49 billion, down 29% Y/Y and missing the consensus of $2.57 billion.
Distributable earnings (DE) fell 36% Y/Y to $1.25 billion, mainly on a 58% Y/Y decline in DE from the real estate business.
Blackstone has been limiting redemption at its flagship real estate income trust (BREIT) since 2022. Its opportunistic and core real estate funds depreciated by 0.4% and 1.6%, respectively in Q1.
DE per share declined 37% Y/Y to $0.97, missing the consensus of $0.98.
Fee-related earnings fell 9% to $1.04 billion on weak performance fees (-73% Y/Y).
Fee-related earnings declined 25% Y/Y in the real estate segment but rose 21% Y/Y in private equity and 22% in Credit & Insurance busiensses.
Net accrued performance revenue declined to $6.4 billion in Q1 2023 from $6.8 billion in Q4 2022 on realized distributions across strategies.
Asset under management rose 8% Y/Y to $991.3 billion, with inflows of $40.4 billion in Q1.
Dividend: Blackstone declared a quarterly dividend per share of $0.82 to be paid on May 8, 2023, to record shareholders as of May 1, 2023.
Repurchase: The company repurchased $1.2 billion worth of stock, with shares available for authorization of $1.0 billion in Q1.
Price Action: BX shares are trading lower by 0.51% at $92.08 on the last check Thursday.