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Thursday, January 31, 2013

Blackstone's earnings outshine real estate, (NYSE: BX)

Blackstone Group LP reported a 43 percent rise in fourth-quarter profit on Thursday, capping what it called its best year as a publicly listed alternative asset manager, despite a lackluster performance by its flagship real estate business.Blackstone's private equity business made a strong comeback in 2012 on the back of higher fund valuations, rising 14.3 percent for the year, as markets rallied. Its real estate portfolio rose 14.4 percent, but earnings were roughly flat based on how the firm booked performance fees last year.A private equity firm founded by Stephen Schwarzman and Peter Peterson in 1985 and that completed an initial public offering in 2007, Blackstone has become more of a real estate firm in recent years, as this franchise has come to dominate its earnings. Though private equity profits rose 86 percent in the fourth quarter, real estate remained the largest earnings contributor."2013 should be a higher year for realizations in general ... and 2014 should be another good year. The portfolio that is maturing the fastest and into which there is the best bid to sell, so to speak, is real estate at this point," Blackstone's President Tony James told reporters on a conference call.

The Blackstone Group L.P. (Blackstone) is a manager of private capital and provider of financial advisory services. Shares of BX traded higher by 6.08% or $1.06/share to $18.50. In the past year, the shares have traded as low as $11.13 and as high as $18.42. On average, 4188850 shares of BX exchange hands on a given day and today's volume is recorded at 6705091.



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