Blackstone (BX) Q3 2024 earnings summary

Executive summary

• Reported GAAP net income of $1.6 billion for Q3 2024, with distributable earnings of $1.3 billion and the highest fund appreciation in three years; total AUM reached $1.1 trillion, up 10% year-over-year, with over $40 billion in Q3 inflows.

• Fee-earning AUM was $820.5 billion, up 12% year-over-year; significant capital deployment totaled $123 billion over the last twelve months, with major investments in data centers and private credit.

• Segment distributable earnings for Q3 2024 were $1.4 billion, with strong contributions from Credit & Insurance and Multi-Asset Investing.

• Declared a quarterly dividend of $0.86 per share, payable in early November 2024.

• Net income attributable to Blackstone Inc. was $781 million for the quarter and $2.1 billion year-to-date.

Financial highlights

• Q3 2024 revenues were $3.7 billion, up 44% year-over-year, with expenses of $1.9 billion; distributable earnings per share rose 7% year-over-year to $1.01.

• Management fees hit a record $1.8 billion, up 8% year-over-year; annualized base management fee rate for Q3 2024 was 0.84%.

• Net accrued performance revenues rose to $7.0 billion, up 13% sequentially and 9% year-over-year.

• Dividend of $0.86 per share declared for Q3, with $3.45 per share distributed over the last twelve months.

• Net realizations were $226 million, mainly from sales in India-based retail REIT and energy positions.

Outlook and guidance

• Management expects continued growth in AUM and fee-earning AUM, supported by strong inflows, capital deployment, and robust fundraising.

• Anticipates a material step-up in fee-related earnings in Q4 as funds exit fee holidays and performance revenues crystallize.

• Expects a more constructive environment for realizations in 2025, with improved transaction activity and fundraising.

• Forecasts continued margin stability and operating leverage, with upside potential in 2025 and beyond.

• Cautions that lower interest rates or widening credit spreads could challenge recent strong performance in credit funds.