Blackstone Inc.: Form 10-Q for the period ended Jun 30, 2023
Filed with the SEC on Aug 4, 2023 and accepted by EDGAR at Aug 4, 2023, 16:02 ET.
Management's discussion and analysis
As filed, 3,656 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
The following discussion and analysis should be read in conjunction with Blackstone Inc.’s condensed consolidated financial statements and the related notes included within this Quarterly Report on Form 10-Q.
In this report, references to “Blackstone,” the “Company,” “we,” “us” or “our” refer to Blackstone Inc. and its consolidated subsidiaries.
Our Business
Blackstone is one of the world’s leading investment firms. We generate revenue from fees earned pursuant to contractual arrangements with funds, fund investors and fund portfolio companies (including management, transaction and monitoring fees), and from capital markets services. We also invest in the funds we manage and we are entitled to a pro-rata share of the income of the fund (a “pro-rata allocation”). In addition to a pro-rata allocation, and assuming certain investment returns are achieved, we are entitled to a disproportionate allocation of the income otherwise allocable to the limited partners, commonly referred to as carried interest (“Performance Allocations”). In certain structures, we receive a contractual incentive fee from an investment fund based on achieving certain investment returns (an “Incentive Fee,” and together with Performance Allocations, “Performance Revenues”). The composition of our revenues will vary based on market conditions and the cyclicality of the different businesses in which we operate. Net investment gains and investment income generated by the Blackstone Funds are driven by the performance of the underlying investments as well as overall market conditions. Fair values are affected by changes in the fundamentals of our portfolio company and other investments, the industries in which they operate, the overall economy and other market conditions.
Our business is organized into four segments:
Real Estate
Our Real Estate business is a global leader in real estate investing. Our Real Estate segment operates as one globally integrated business, with investments across the globe, including in the Americas, Europe and Asia. Our real estate investment teams seek to utilize our global expertise and presence to generate attractive risk-adjusted returns for our investors.
Our Blackstone Real Estate Partners (“BREP”) business is geographically diversified and targets a broad range of opportunistic real estate and real estate-related investments. The BREP funds include global funds as well as funds focused specifically on Europe or Asia investments. BREP seeks to invest thematically in high-quality assets, focusing where we see outsized growth potential driven by global economic and demographic trends.
Our Core+ strategy invests in substantially stabilized real estate globally primarily through perpetual capital vehicles. These include our (a) Blackstone Property Partners funds (“BPP”), which are focused on high-quality assets in the Americas, Europe and Asia and (b) Blackstone Real Estate Income Trust, Inc. (“BREIT”) and our Blackstone European Property Income (“BEPIF”) funds, which provide income-focused individual investors access to institutional quality real estate globally in developed markets.
Our Blackstone Real Estate Debt Strategies (“BREDS”) vehicles primarily target real estate-related debt investment opportunities. BREDS invests in both public and private markets, primarily in the U.S. and Europe. BREDS’ scale and investment mandates enable it to provide a variety of lending options for our borrowers and investment options for our investors, including commercial real estate and mezzanine loans, residential mortgage loan pools and liquid real estate-related debt securities. The BREDS
Risk factors
As filed, 5,860 characters, with its headings, lists and tables. Extracted from the main document; charts and exhibits are in the original on sec.gov.
Unaudited Consolidating Statements of Financial Condition
(Dollars in Thousands)
| Assets | June 30, 2023 Consolidated Operating Partnerships | Consolidated Blackstone Funds (a) | Reclasses and Eliminations | Consolidated |
|---|---|---|---|---|
| Cash and Cash Equivalents | $3,280,204 | $— | $— | $3,280,204 |
| Cash Held by Blackstone Funds and Other | — | 215,444 | — | 215,444 |
| Investments | 22,265,924 | 5,490,773 | (708,076) | 27,048,621 |
| Accounts Receivable | 653,090 | 10,938 | — | 664,028 |
| Due from Affiliates | 4,329,222 | 10,692 | (45,477) | 4,294,437 |
| Intangible Assets, Net | 219,221 | — | — | 219,221 |
| Goodwill | 1,890,202 | — | — | 1,890,202 |
| Other Assets | 904,673 | 781 | — | 905,454 |
| Right-of-Use Assets | 888,190 | — | — | 888,190 |
| Deferred Tax Assets | 2,176,983 | — | — | 2,176,983 |
| Total Assets | $36,607,709 | $5,728,628 | $(753,553) | $41,582,784 |
| Liabilities and Equity | ||||
| Loans Payable | $10,585,621 | $1,714,234 | $— | $12,299,855 |
| Due to Affiliates | 1,989,910 | 151,177 | (48,250) | 2,092,837 |
| Accrued Compensation and Benefits | 5,685,879 | — | — | 5,685,879 |
| Securities Sold, Not Yet Purchased | 3,821 | — | — | 3,821 |
| Repurchase Agreements | 18,262 | — | — | 18,262 |
| Operating Lease Liabilities | 1,013,813 | — | — | 1,013,813 |
| Accounts Payable, Accrued Expenses and Other Liabilities | 1,245,129 | 132,709 | — | 1,377,838 |
| Total Liabilities | 20,542,435 | 1,998,120 | (48,250) | 22,492,305 |
| Redeemable Non-Controlling Interests in Consolidated Entities | 1 | 1,626,348 | — | 1,626,349 |
| Equity | ||||
| Common Stock | 7 | — | — | 7 |
| Series I Preferred Stock | — | — | — | — |
| Series II Preferred Stock | — | — | — | — |
| Additional Paid-in-Capital | 6,076,366 | 681,401 | (681,400) | 6,076,367 |
| Retained Earnings | 1,160,278 | 23,903 | (23,903) | 1,160,278 |
| Accumulated Other Comprehensive Income (Loss) | (35,153) | 17,948 | — | (17,205) |
| Non-Controlling Interests in Consolidated Entities | 3,794,053 | 1,380,908 | — | 5,174,961 |
| Non-Controlling Interests in Blackstone Holdings | 5,069,722 | — | — | 5,069,722 |
| Total Equity | 16,065,273 | 2,104,160 | (705,303) | 17,464,130 |
| Total Liabilities and Equity | $36,607,709 | $5,728,628 | $(753,553) | $41,582,784 |
67
Unaudited Consolidating Statements of Financial Condition - Continued
(Dollars in Thousands)
| Assets | December 31, 2022 Consolidated Operating Partnerships | Consolidated Blackstone Funds (a) | Reclasses and Eliminations | Consolidated |
|---|---|---|---|---|
| Cash and Cash Equivalents | $4,252,003 | $— | $— | $4,252,003 |
| Cash Held by Blackstone Funds and Other | — | 241,712 | — | 241,712 |
| Investments | 23,236,603 | 5,136,542 | (819,894) | 27,553,251 |
| Accounts Receivable | 407,681 | 55,223 | — | 462,904 |
| Due from Affiliates | 4,185,982 | 8,417 | (47,692) | 4,146,707 |
| Intangible Assets, Net | 217,287 | — | — | 217,287 |
| Goodwill | 1,890,202 | — | — | 1,890,202 |
| Other Assets | 798,299 | 2,159 | — | 800,458 |
| Right-of-Use Assets | 896,981 | — | — | 896,981 |
| Deferred Tax Assets | 2,062,722 | — | — | 2,062,722 |
| Total Assets | $37,947,760 | $5,444,053 | $(867,586) | $42,524,227 |
| Liabilities and Equity | ||||
| Loans Payable | $10,899,584 | $1,450,000 | $— | $12,349,584 |
| Due to Affiliates | 2,039,549 | 128,681 | (49,749) | 2,118,481 |
| Accrued Compensation and Benefits | 6,101,801 | — | — | 6,101,801 |
| Securities Sold, Not Yet Purchased | 3,825 | — | — | 3,825 |
| Repurchase Agreements | 89,944 | — | — | 89,944 |
| Operating Lease Liabilities | 1,021,454 | — | — | 1,021,454 |
| Accounts Payable, Accrued Expenses and Other Liabilities | 1,132,213 | 25,858 | — | 1,158,071 |
| Total Liabilities | 21,288,370 | 1,604,539 | (49,749) | 22,843,160 |
| Redeemable Non-Controlling Interests in Consolidated Entities | 3 | 1,715,003 | — | 1,715,006 |
| Equity | ||||
| Common Stock | 7 | — | — | 7 |
| Series I Preferred Stock | — | — | — | — |
| Series II Preferred Stock | — | — | — | — |
| Additional Paid-in-Capital | 5,935,273 | 800,381 | (800,381) | 5,935,273 |
| Retained Earnings | 1,748,106 | 17,456 | (17,456) | 1,748,106 |
| Accumulated Other Comprehensive Income (Loss) | (35,346) | 7,871 | — | (27,475) |
| Non-Controlling Interests in Consolidated Entities | 3,757,677 | 1,298,803 | — | 5,056,480 |
| Non-Controlling Interests in Blackstone Holdings | 5,253,670 | — | — | 5,253,670 |
| Total Equity | 16,659,387 | 2,124,511 | (817,837) | 17,966,061 |
| Total Liabilities and Equity | $37,947,760 | $5,444,053 | $(867,586) | $42,524,227 |
68
(a) The Consolidated Blackstone Funds consisted of the following:
Blackstone / GSO Global Dynamic Credit Feeder Fund (Cayman) LP**
Blackstone / GSO Global Dynamic Credit Funding Designated Activity Company**
Blackstone / GSO Global Dynamic Credit Master Fund**
Blackstone / GSO Global Dynamic Credit USD Feeder Fund (Ireland)**
Blackstone Annex Onshore Fund L.P.
Blackstone Horizon Fund L.P.
Blackstone Real Estate Special Situations Holdings L.P.**
Blackstone Strategic Alliance Fund L.P.**
BTD CP Holdings LP
Blackstone Dislocation Fund L.P.
BEPIF (Aggregator) SCSp
BX Shipston SCSp
Blackstone Private Equity Strategies Fund L.P.
Blackstone Private Equity Strategies Fund SICAV
Blackstone Private Equity Strategies Fund (Master) FCP*
Blackstone Infrastructure Hogan Co-Invest (CYM) L.P.
Clover Credit Partners CLO III, Ltd.*
Mezzanine side-by-side investment vehicles**
Private equity side-by-side investment vehicles
Real estate side-by-side investment vehicles
Hedge Fund Solutions side-by-side investment vehicles.
*Consolidated as of June 30, 2023 only
** Consolidated as of December 31, 2022 only
Figures reported in this filing
Standardized line items from the XBRL in this filing, for the period ended 2023-06-30. Comparative periods it repeats are left out.
| Line item | Period | Value | XBRL concept |
|---|---|---|---|
| Revenue | 3 months2023-04-01 to 2023-06-30 | $2.81bn | us-gaap:Revenues |
| Revenue | 6 months2023-01-01 to 2023-06-30 | $4.20bn | us-gaap:Revenues |
| Interest expense | 3 months2023-04-01 to 2023-06-30 | $108.1m | us-gaap:InterestExpense |
| Interest expense | 6 months2023-01-01 to 2023-06-30 | $212.5m | us-gaap:InterestExpense |
| Income tax | 3 months2023-04-01 to 2023-06-30 | $223.3m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 6 months2023-01-01 to 2023-06-30 | $270.9m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months2023-04-01 to 2023-06-30 | $601.3m | us-gaap:NetIncomeLoss |
| Net income | 6 months2023-01-01 to 2023-06-30 | $687.1m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months2023-04-01 to 2023-06-30 | $0.79 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 6 months2023-01-01 to 2023-06-30 | $0.91 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months2023-04-01 to 2023-06-30 | $0.79 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 6 months2023-01-01 to 2023-06-30 | $0.91 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months2023-04-01 to 2023-06-30 | 758,548,248 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 6 months2023-01-01 to 2023-06-30 | 752,630,385 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 6 months2023-01-01 to 2023-06-30 | $2.08bn | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 6 months2023-01-01 to 2023-06-30 | $130.2m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 6 months2023-01-01 to 2023-06-30 | $2.19bn | us-gaap:PaymentsOfDividendsCommonStock |
| Cash and equivalents | At period end2023-06-30 | $3.28bn | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Total assets | At period end2023-06-30 | $41.58bn | us-gaap:Assets |
| Total liabilities | At period end2023-06-30 | $22.49bn | us-gaap:Liabilities |
| Long-term debt | At period end2023-06-30 | $12.47bn | us-gaap:LongTermDebt |
| Shareholders' equity | At period end2023-06-30 | $7.22bn | us-gaap:StockholdersEquity |
Source: SEC EDGAR, the filing index for accession 0001193125-23-203835. Last ingested by Listed: Nov 14, 2026, 20:14 ET. Listed shows no prices and gives no investment advice.