Blackstone Real Estate AUM Gains 9%

Blackstone’s Midtown Manhattan headquarters; the company is the world’s largest real estate investor, with real estate AUM now exceeding $111 billion.

NEW YORK CITY—The Blackstone Group’s largest segment globally by assets under management has grown even larger. The investment giant said Thursday its real estate AUM increased 9% over the past 12 months to $111.3 billion, a faster year-over-year growth rate than that of the company’s portfolio as a whole, with fee-earning AUM growing 14% from the year-ago period. Overall, Blackstone’s AUM reached $387.4 billion in the third quarter, a new record for the company.

The gains in real estate asset management fees and the carrying value of Blackstone’s funds in the real estate segment played a significant part in the company’s Q3 earnings results, which beat analysts’ estimates. Blackstone reported economic net income of 69 cents per share for Q3; the Zacks consensus estimate called for ENI of 57 cents per share, and Zacks noted Thursday that the estimate had moved downward in recent days.