Blackstone Inc. · NYSE:BX
Blackstone — Q1 2024 Earnings Presentation
40 slides from Blackstone's earnings presentation, Apr 18, 2024
Slide 1: Blackstone's First Quarter 2024 Earnings
Blackstone’s First Quarter 2024 Earnings APRIL 18, 2024
Slide 2: Blackstone's First Quarter 2024 GAAP Results
BLACKSTONE’S FIRST QUARTER 2024 GAAP RESULTS ▪ GAAP Net Income was $1.6 billion for the quarter and $3.8 billion over the last twelve months (“LTM”). GAAP Net Income Attributable to Blackstone Inc. was $847 million for the quarter and $2.2 billion over the LTM. ($ in thousands, except per share data
Slide 3: Blackstone's First Quarter 2024 Highlights
BLACKSTONE’S FIRST QUARTER 2024 HIGHLIGHTS ▪ Fee Related Earnings (“FRE”) of $1.2 billion ($0.95/share) in the quarter – FRE was $4.5 billion over the LTM ($3.67/share) ▪ Distributable Earnings (“DE”) of $1.3 billion ($0.98/share) in the quarter Financial Measures – DE was $5.1 billion over the LTM
Slide 4: Blackstone's First Quarter 2024 Segment Earnings
BLACKSTONE’S FIRST QUARTER 2024 SEGMENT EARNINGS % Change % Change ($ in thousands, except per share data) 1Q'23 1Q'24 vs. 1Q'23 1Q'23 LTM 1Q'24 LTM vs. 1Q'23 LTM Management and Advisory Fees, Net $ 1,652,387 $ 1,707,571 3% $ 6,461,965 $ 6,718,428 4% Fee Related Performance Revenues 148,244 295,501
Slide 5: Investment Performance and Net Accrued Performance Revenues
INVESTMENT PERFORMANCE AND NET ACCRUED PERFORMANCE REVENUES ▪ Appreciation across strategies led to higher Net Accrued Performance Revenues quarter-over-quarter of $6.1 billion ($5.00/share). Investment Performance Net Accrued Performance Revenues (appreciation / gross returns) ($ in millions) 1Q'24
Slide 6: Capital Metrics – Additional Detail
CAPITAL METRICS – ADDITIONAL DETAIL ▪ Inflows were $34.0 billion in the quarter, bringing LTM inflows to $142.2 billion. ▪ Deployed $24.5 billion in the quarter and $87.5 billion over the LTM. – Committed an additional $11.0 billion that was not yet deployed in the quarter. ▪ Realizations were $15.0
Slide 7: Assets Under Management
ASSETS UNDER MANAGEMENT ▪ Total AUM increased to $1,061.3 billion, up 7% year-over-year, with $34.0 billion of inflows in the quarter and $142.2 billion over the LTM. ▪ Fee-Earning AUM of $781.4 billion was up 7% year-over-year, with $29.0 billion of inflows in the quarter and $116.4 billion over th
Slide 8: Additional Capital Detail
ADDITIONAL CAPITAL DETAIL ▪ Invested Performance Eligible AUM reached $515.4 billion at quarter end. ▪ Undrawn capital (“Total Dry Powder”) available for investment of $191.2 billion. Invested Performance Eligible AUM Total Dry Powder ($ in billions) ($ in billions) $515.4 1Q'24 total: $191.2 $498.2
Slide 9: Segment Highlights
Segment Highlights Blackstone | 8
Slide 10: Segment Distributable Earnings Composition
SEGMENT DISTRIBUTABLE EARNINGS COMPOSITION ▪ 1Q'24 Total Segment Distributable Earnings were $1.5 billion. ▪ LTM Total Segment Distributable Earnings were $5.6 billion. Segment Distributable Earnings ($ in millions) 1Q'24 total: $1,453 1Q'24 LTM total: $5,649 Multi-Asset Multi-Asset Investing Invest
Slide 11: Real Estate
REAL ESTATE ▪ Total AUM: Increased 2% to $339.3 billion with inflows of $8.1 billion in the quarter and $45.0 billion over the LTM. – Inflows in the quarter included $2.5 billion in BREDS Insurance SMAs, $2.2 billion in the seventh European opportunistic fund, $807 million of capital raised in BREIT
Slide 12: Private Equity
PRIVATE EQUITY ▪ Total AUM: Increased 8% to $310.0 billion with inflows of $7.4 billion in the quarter and $26.6 billion over the LTM. – Inflows in the quarter included $1.7 billion in Infrastructure and $1.4 billion for the ninth flagship private equity fund. – $2. billion of capital raised in Blac
Slide 13: Credit & Insurance
CREDIT & INSURANCE ▪ Total AUM: Increased 13% to $329.6 billion with inflows of $17.2 billion in the quarter and $63.1 billion over the LTM. – Inflows in the quarter included $7.3 billion for the global direct lending strategy, inclusive of $2.9 billion of equity raised for BCRED, and $5.3 billion f
Slide 14: Multi-Asset Investing
MULTI-ASSET INVESTING ▪ Total AUM: Increased 1% to $82.3 billion with inflows of $1.4 billion in the quarter and $7.5 billion over the LTM. ▪ Returns: Absolute Return Composite gross return of 4.6% in the quarter (4.3% net), outperforming the HFRX Global Hedge Fund Index, which was 2.5%. – Absolute
Slide 15: Supplemental Details
Supplemental Details Blackstone | 14
Slide 16: Total Segments
TOTAL SEGMENTS ($ in thousands) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Base Management Fees $ 1,619,547 $ 1,620,609 $ 1,619,743 $ 1,605,948 $ 1,644,730 $ 6,225,436 $ 6,491,030 Transaction, Advisory and Other Fees, Net 45,710 92,735 44,611 52,836 66,938 291,818 257,120 Management Fee Offse
Slide 17: Assets Under Management - Rollforward
ASSETS UNDER MANAGEMENT - ROLLFORWARD Total AUM Rollforward ($ in millions) Three Months Ended March 31, 2024 Twelve Months Ended March 31, 2024 Real Private Credit & Multi-Asset Real Private Credit & Multi-Asset Total Total Estate Equity Insurance Investing Estate Equity Insurance Investing Beginni
Slide 18: Deconsolidated Balance Sheet Highlights
DECONSOLIDATED BALANCE SHEET HIGHLIGHTS ▪ At March 31, 2024, Blackstone had $8.4 billion in total cash, cash equivalents, corporate treasury, and other investments and $17.3 billion of cash and net investments, or $14.21 per share. ▪ Blackstone has a $4.3 billion credit revolver and maintains A+/A+
Slide 19: Net Accrued Performance Revenues – Additional Detail
NET ACCRUED PERFORMANCE REVENUES – ADDITIONAL DETAIL 1Q'24 ($ in millions, except per share data) 1Q'23 4Q'23 1Q'24 Real Estate Per Share 1Q'24 QoQ Rollforward BREP IV $ 6 $ 2 $ 4 $ 0.00 ($ in millions) BREP V 4 4 4 0.00 Net Net BREP VI 19 1 2 0.00 Performance Realized BREP VII 86 - - - Revenues Dis
Slide 20: Investment Records as of March 31, 2024
INVESTMENT RECORDS AS OF MARCH 31, 2024 (a) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value MOIC (c) Rea
Slide 21: Investment Records as of March 31, 2024 (Cont'd)
INVESTMENT RECORDS AS OF MARCH 31, 2024 (a) – (CONT’D) ($/€ in thousands, except where noted) Committed Available Unrealized Investments Realized Investments Total Investments Net IRRs (d) Fund (Investment Period Beginning Date / Ending Date) Capital Capital (b) Value MOIC (c) Value MOIC (c) Value M
Slide 22: Investment Records – Selected Perpetual Capital Strategies
INVESTMENT RECORDS AS OF MARCH 31, 2024 (a) – (CONT’D) Selected Perpetual Capital Strategies(l) ($ in thousands, except where noted) Investment Total Total Net Strategy (Inception Year) Strategy AUM Return (m) Real Estate BPP - Blackstone Property Partners Platform (2013) (n) Core+ Real Estate $ 64,
Slide 23: Investment Records as of March 31, 2024 (Cont'd) Notes
INVESTMENT RECORDS AS OF MARCH 31, 2024 (a) – (CONT’D) (m) Unless otherwise indicated, Total Net Return represents the annualized inception to March 31, 2024 IRR on total invested capital based on realized proceeds and unrealized value, as applicable, after management fees, expenses and Performance
Slide 24: Shareholder Dividends
SHAREHOLDER DIVIDENDS ▪ Generated $0.98 of Distributable Earnings per common share during the quarter, bringing the LTM amount to $3.96 per common share. ▪ Blackstone declared a quarterly dividend of $0.83 per common share to record holders as of April 29, 2024; payable on May 6, 2024. % Change % Ch
Slide 25: Share Summary
SHARE SUMMARY ▪ Distributable Earnings Shares Outstanding as of quarter end of 1,217 million shares. – Repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the LTM. – Available authorization remaining was $668 million at March 31, 2024. 1Q'23 2Q'23 3Q'23 4Q'23 1Q'2
Slide 26: Reconciliations and Disclosures
Reconciliations and Disclosures Blackstone | 25
Slide 27: GAAP Condensed Consolidated Statements of Operations
BLACKSTONE’S FIRST QUARTER 2024 GAAP CONDENSED CONSOLIDATED STAT EMENTS OF OPERATIONS ($ in thousands, except per share data) (unaudited) 1Q'23 1Q'24 1Q'23 LTM 1Q'24 LTM Revenues Management and Advisory Fees, Net $ 1,658,315 $ 1,727,148 $ 6,485,694 $ 6,740,093 Incentive Fees 142,876 179,341 563,514
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
RECONCILIATION OF GAAP TO NON-GAAP MEASURES QTD LTM ($ in thousands) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 1Q'23 1Q'24 Net Income Attributable to Blackstone Inc. $ 85,812 $ 601,274 $ 551,994 $ 151,800 $ 847,386 $ 616,569 $ 2,152,454 Net Income Attributable to Non-Controlling 56,700 495,309 440,609 82,118 68
Slide 29: Reconciliation of GAAP to Non-GAAP Measures – Notes
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES Note: See pages 36-38, Definitions and Dividend Policy. (a) This adjustment removes Transaction-Related and Non-Recurring Items, which are excluded from Blackstone’s segment presentation. Transaction-Related and Non-Recurring Items arise from corpo
Slide 30: Reconciliation of GAAP to Non-GAAP Measures – Notes (Cont'd)
RECONCILIATION OF GAAP TO NON-GAAP MEASURES – NOTES (CONT’D) (j) Taxes represent the total GAAP tax provision adjusted to include only the current tax provision (benefit) calculated on Income (Loss) Before Provision (Benefit) for Taxes and adjusted to exclude the tax impact of any divestitures. For
Slide 31: GAAP Condensed Consolidated Statements of Financial Condition
BLACKSTONE’S FIRST QUARTER 2024 GAAP CONDENSED CONSOLIDATED STAT EMENTS OF FINANCIAL CONDITION ($ in thousands) (unaudited) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Assets Cash and Cash Equivalents $ 2,830,971 $ 3,280,204 $ 2,971,614 $ 2,955,866 $ 2,504,471 Cash Held by Blackstone Funds and Other 190,322 215,4
Slide 32: Reconciliation of GAAP to Non-GAAP Balance Sheet Measures
RECONCILIATION OF GAAP TO NON-GAAP BALANCE SHEET MEASURES ($ in thousands) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Investments of Consolidated Blackstone Funds $ 5,443,867 $ 5,490,773 $ 5,224,104 $ 4,319,483 $ 3,458,911 Equity Method Investments Partnership Investments 5,598,552 5,585,603 5,588,222 5,924,275
Slide 33: Reconciliation of GAAP to Total Segments
RECONCILIATION OF GAAP TO TOTAL SEGMENTS QTD LTM Y ($ in thousands) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 1Q'23 1Q'24 Management and Advisory Fees, Net GAAP $ 1,658,315 $ 1,709,370 $ 1,655,443 $ 1,648,132 $ 1,727,148 $ 6,485,694 $ 6,740,093 Segment Adjustment (a) (5,928) (6,184) (1,603) 5,699 (19,577) (23,7
Slide 34: Reconciliation of GAAP to Total Segments – (Cont'd)
RECONCILIATION OF GAAP TO TOTAL SEGMENTS – (CONT’D) QTD LTM Y ($ in thousands) 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 1Q'23 1Q'24 Realized Performance Compensation GAAP Incentive Fee Compensation $ 63,281 $ 64,227 $ 65,432 $ 88,127 $ 73,707 $ 230,260 $ 291,493 Realized Performance Allocations Compensation 29
Slide 35: Notes
NOTES Notes to page 4 - Investment Performance and Net Accrued Performance Revenues ▪ The changes in carrying value, fund returns and composite returns presented throughout this presentation represent those of the applicable Blackstone Funds and not those of Blackstone. ▪ Core+ appreciation represen
Slide 36: Notes – (Cont'd)
NOTES – (CONT’D) Notes to page 23 – Shareholder Dividends ▪ DE before Certain Payables represents Distributable Earnings before the deduction for the Payable Under Tax Receivable Agreement and tax expense (benefit) of wholly owned subsidiaries. Common shareholders receive tax benefits from deduction
Slide 37: Definitions and Dividend Policy
DEFINITIONS AND DIVIDEND POLICY Blackstone discloses the following operating metrics and financial measures that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States of America (“non-GAAP”) in this pres
Slide 38: Definitions and Dividend Policy – (Cont'd)
DEFINITIONS AND DIVIDEND POLICY – (CONT’D) – Fee Related Compensation is presented on a segment basis and refers to the compensation expense, excluding Equity-Based Compensation, directly related to (a) Management and Advisory Fees, Net and (b) Fee Related Performance Revenues, referred to as Fee Re
Slide 39: Definitions and Dividend Policy – (Cont'd)
DEFINITIONS AND DIVIDEND POLICY – (CONT’D) Dividend Policy. Blackstone’s intention is to pay to holders of common stock a quarterly dividend representing approximately 85% of Blackstone Inc.’s share of Distributable Earnings, subject to adjustment by amounts determined by Blackstone’s board of direc
Slide 40: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our current views with respect to, among other things, ou