Blackstone Group, the world’s largest commercial property owner reached $1 trillion in assets under management this year.
- A slump in real estate led to a 12% drop in private equity firm’s earnings. Fund dividends fell to $1.21 billion in Q3 from the year-earlier $1.37 billion.
- Real estate’s distributable earnings dropped 27% to $557.2 million as higher interest rates and an uncertain economic outlook curtailed deal activity. Realized performance revenue in the segment slumped 88%.
- The company will stay committed to 3 property types in 2024:
- Warehouses;
- Data centers; and
- Student housing.
- Blackstone has sharply cut investments in areas such as offices.
Source: Costar, “Blackstone Earnings Drop As Real Estate Marks the Firm’s Worst-Performing Segment,” Oct. 19, 2023.