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What You Can Expect from Blackstone in 2017

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What You Can Expect from Blackstone in 2017 PART 1 OF 8

Blackstone Plans to Increase Real Estate Division Deployments

Performance in 2H17

Blackstone (BX) is expected to report its 2Q17 earnings report on July 20, 2017. Wall Street analysts expect Blackstone to report earnings per share or EPS of $0.66 in 2Q17, a decline of 19.5% from its EPS reported in 1Q17. The company posted EPS of $0.82 in 1Q17, beating analysts’ estimates of $0.68, mainly due to strong macro fundamentals and rising broad markets. 

In 1Q17, the company reported $16.6 billion in realizations, the majority of which came from private equity and real estate divisions. After reporting strong numbers in realizations, the company is expecting more realizations in the coming quarters. Management has a positive outlook on the company’s real estate division and plans to deploy more funds in the coming quarters. Management currently focuses on European opportunistic deals and its core-plus fund.

Blackstone Plans to Increase Real Estate Division Deployments

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Blackstone’s (BX) revenue in 1Q17 stood at $1.9 billion, a rise of 108% on a year-over-year basis. This growth is expected to last for 2H17, mainly due to better performance of the company’s funds. The company’s total assets under management or AUM stood at $368.2 billion in 1Q17. This 7% increase on a year-over-year basis to total AUM came on the back of strong fund appreciation and continued fundraising. The company’s dominant position in the alternative business category and its diversified products are likely to boost its total AUM in the coming quarters. Blackstone is expected to post EPS of $2.91 for the full year.

New deals coming up

Blackstone (BX) made deployments of around $12 billion in its draw-down funds, which could benefit the company in 2H17. In April 2017, Blackstone (BX) committed $2 billion in new deals in its private equity division. In 1Q17, the company’s private equity funds and real estate opportunity funds appreciated 7% and 6%, respectively. Alternative asset managers (XLF) are expected to report the following EPS in 2Q17.

  • BlackRock (BLK): $5.31
  • Apollo Global Management (APO): $0.55
  • KKR & Co. LP (KKR): $0.52

In this series, we’ll analyze the company’s private equity division, credit division, hedge funds division, real estate division, distributions, valuations, and Wall Street ratings.

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