Blackstone profits fall 70% in Q4

Miami /
Jan.January 28, 2016 04:30 PM

From the New York websiteThe Blackstone Group saw its profits shrink by 70 percent in the fourth quarter amid weak stock markets. The alternative asset manager, whose real estate funds collectively were the biggest investor in New York City real estate in 2015, also took a hit on its stake in the Hilton hotel chain.

Blackstone’s economic net income fell from $1.45 billion to $435.7 million, or from 44 cents to 37 cents a share. Analysts had expected profits to stay flat at 44 cents per share.

Weak stock markets are partly to blame, as share prices influence the fund manager’s net economic income. Blackstone’s credit arm GSO Capital Partners, meanwhile, was hit hard by falling oil prices and saw its profits shrink by 87 percent. Blackstone’s stake in hotel company Hilton Worldwide Holdings has lost $2.3 billion in value since September.

“It’s really just noise,” Blackstone’s president Tony James said on an earnings call Thursday. “We do not believe the markdowns represent permanent diminution of values, impairments or changes in what we ultimately expect to realize from our investments.”

The Blackstone Group’s realized much of its income from fees it charges investors for managing its private equity, real estate, hedge and debt funds. Weaker performance of those funds translates into lower earnings. Blackstone’s funds have $336.4 billion in assets under management, making it the world’s largest alternative asset manager.

Blackstone’s real estate division, headed by Jonathan Gray, last year made a splash by buying New York’s Stuyvesant Town-Peter Cooper Village for $5.3 billion. The firm also dished out $23 billion for GE Capital’s real estate portfolio in partnership with Wells Fargo and $8 billion for BioMed Realty Trust.

In South Florida, the financial giant regularly trades in multifamily complexes and retail developments. The firm’s Invitation Homes division also operates 175 rental properties in the region.[Bloomberg]Konrad Putzier

 

Related Articles

arrow_forward_ios
Blackstone's Jonathan Gray and Stephen Schwarzman (Getty, iStock)

Blackstone to open office in South Florida

Blackstone to open office in South Florida
Jon Gray, 16100 Northwest 49 Avenue and 16200 Northwest 49 Avenue, Miami Gardens (Credit: Google Maps)

Blackstone snags eight industrial properties in Miami-Dade

Blackstone snags eight industrial properties in Miami-Dade
Shlomo Khoudari, Managing Partner at Elion Partners, and Stephen A. Schwarzman, CEO of the Blackstone Group, with 1800-1880 North Commerce Parkway, Weston, and 3400-3450 Park Central Boulevard, Pompano Beach (Credit: Google Maps)

Blackstone pays $46M for Broward industrial properties

Blackstone pays $46M for Broward industrial properties
Shane Neman, and Mauricio Bello Richard Waserstein, with 525 Northwest 77th Street Marriott in Boca

Blackstone sells Marriott hotel in Boca Raton

Blackstone sells Marriott hotel in Boca Raton
Fordome Investment Group’s Kris Rodriguez and Blackstone’s Stephen Schwarzman (Credit: Getty Images, Google Maps)

Blackstone plans to build new Medley warehouse

Blackstone plans to build new Medley warehouse
Placeholder image

Blackstone sells Weston hotel for $12M

Blackstone sells Weston hotel for $12M
Industrial sales are up

South Florida’s industrial sales jump to over $1B in Q3 2019

South Florida’s industrial sales jump to over $1B in Q3 2019
Daily Digest Miami

Scaramucci slashes his sights on his Opportunity Zone fund, Florida’s first LGBTQ+ senior housing development breaks ground: Daily digest

Scaramucci slashes his sights on his Opportunity Zone fund, Florida’s first LGBTQ+ senior housing development breaks ground: Daily digest
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...