Distributable earnings, which represents the cash used to pay dividends to shareholders, fell to $1.3 billion from $2.3 billion a year earlier. That translated to distributable earnings per share of $1.07, which surpassed the average analyst estimate of 95 cents, according to financial data provider Refinitiv.
Higher interest rates, inflation, recession worries, and geopolitical tensions from the Russia-Ukraine conflict have prevented private equity firms like Blackstone from selling assets for top dollar.
Blackstone said its net profit from asset sales fell sharply by 55% to $366.9 million during the fourth quarter to December, down from $817.5 million a year earlier.
Blackstone's closely watched fee-related earnings fell 39% to $1.1 billion. The firm has faced rising redemptions at its flagship real estate income trust (BREIT), which contributes about 17% to its earnings.
Financial market turbulence also weighed on the quarterly performance of Blackstone's funds.
Its opportunistic and core real estate funds depreciated by 2% and 1.5%, respectively. Secondary funds fell 1.8% while corporate private equity and private credit funds gained 3.8% and 2.4%, respectively. By contrast, the benchmark S&P 500 index rose 7.08% in the fourth quarter.
Under generally accepted accounting principles, Blackstone reported net income of $557.9 million, down 60% from $1.4 billion in the prior year owing to investment losses.
Blackstone generated net accrued performance revenues of $6.8 billion, spent $18.7 billion on new acquisitions, raised $43.1 billion of new capital, and retained $186.6 billion of unspent capital. It ended the quarter with $974.7 billion of total assets under management and declared a quarterly dividend of 91 cents per share.
(Reporting by Chibuike Oguh in New York; Editing by Sam Holmes)
By Chibuike Oguh
