The Blackstone earnings call for the third quarter of 2024, held on October 17, 2024, provided a detailed account of the company’s performance and strategic initiatives. Blackstone reported GAAP net income of $1.6 billion for the period, with distributable earnings reaching $1.3 billion, equivalent to $1.01 per common share. The firm declared a dividend of $0.86 per share, to be paid to shareholders as of October 28.
During the call, key executives, including Steve Schwarzman, Jon Gray, and Michael Chae, outlined Blackstone’s strategic approach amid evolving economic conditions. Schwarzman emphasized Blackstone’s robust results, highlighting an increase in distributable earnings and fee-related earnings, marking the highest of the past two years. The discussion included Blackstone’s outlook on macroeconomic trends, particularly inflation, and the Federal Reserve’s interest rate decisions. It was suggested that these factors are likely to positively impact asset values and transaction activities, benefiting Blackstone’s business model.
The firm reported a substantial increase in investment pace, deploying $123 billion over the last 12 months, which signified an active period in its history. Schwarzman described this as a strategic decision aimed at capitalizing on what Blackstone perceives as favorable market conditions. Furthermore, Blackstone witnessed its highest overall fund depreciation in three years during the third quarter, which is expected to lead to future value creation.
Blackstone also highlighted its focus on emerging opportunities, specifically in artificial intelligence and commercial real estate recovery. The acquisition of AirTrunk, the largest data center operator in the Asia Pacific, for $16 billion was highlighted as a significant expansion, reinforcing Blackstone’s standing as a leading data center provider. Additionally, the firm’s commercial real estate strategies are witnessing renewed interest from investors, potentially leading to improved flows and transaction activities.
Jon Gray underscored several key developments contributing to Blackstone’s progress, including a substantial capital deployment strategy and the recovery of commercial real estate. Blackstone has committed considerable resources to real estate in anticipation of a market recovery, with a notable uptick in investments over the past year. The conversation also touched on the secular rise of private credit and Blackstone’s strategic positioning within this growing market.
Michael Chae discussed financial results, emphasizing growth in assets under management (AUM), which reached $1.1 trillion, a 10% increase from the previous year. Fee-related earnings were also noted as a critical driver of the firm’s success. He expressed confidence in Blackstone’s momentum, pointing out the potential for improved realization environments in 2025.
During the question-and-answer session, executives addressed topics related to Blackstone’s insurance platform growth, operational expenses, and the potential for improvements in specific investment areas. The call concluded with optimism about Blackstone’s strategic positioning and the positive impact of expected market conditions on the firm’s long-term growth trajectory.
