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The Truth behind Blackstone's Record 1Q17 Numbers

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Part 6
The Truth behind Blackstone's Record 1Q17 Numbers PART 6 OF 8

Where Blackstone Stands Now in Distributions

Distributions rise

Blackstone Group’s (BX) stock has risen 2.4% over the past three months on its stable performance in recent months, and the company rewards shareholders with substantial dividends at a yield of 5%–7%. In 1Q17, Blackstone showed its second-best distribution ever of $0.87 per share, translating to a yield of 7.9% at its current price. In the previous quarter, the company rewarded a distribution of $0.47.

Where Blackstone Stands Now in Distributions

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The company saw distributable earnings of $1.2 billion on the back of $1.2 billion in net realized performance fees. Over the past 12 months, the company has managed distributable earnings of $3 billion on the back of $2.5 billion in realized performance fees. Its competitors’ yields are as follows:

  • Apollo Global Management (APO): 5.7%
  • Carlyle Group (CG): 11.4%
  • KKR & Company (KKR): 3.8%

Together, these companies form 1.6% of the Financial Select Sector SPDR ETF (XLF).

Record realizations

Notably, Blackstone managed record-high realizations in 1Q17 amid high liquidity and valuations. These exits came primarily from strategic sales and public offerings. Its highest exits totaled $6.7 billion in the Real Estate division and $6.2 billion in the Private Equity division.

Over the past year, Blackstone has distributed $69.2 billion to its investors backed by strong realizations of $46.3 billion, as compared to inflows of $72.9 billion during the same period. The alternative investment giant could further enhance its exit in 2Q17, particularly considering the liquidity and valuations across sectors and economies. However, as stocks retreat globally, the company could decide to increase its deployments in coming quarters.

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