NEW YORK-Blackstone reported last week that its fourth quarter earnings more than doubled from the same period a year earlier. The New York-based global firm hit a net income mark of $1.54 billion for the quarter compared to $670 million for the fourth quarter of 2012.
Blackstone's stock jumped more than 6% in pre-market trading on Thursday after it released it's year end report.
Reuters says the earnings boost was related in part to the IPOs of Hilton Worldwide Holdings Inc, Extended Stay America Inc., and Brixmor Property Group Inc. Profit also jumped in Blackstone's private equity and hedge fund units as asset values lifted and the firm cashed out on some investments. Merlin Entertainments Plc, an operator of amusement parks and the Madame Tussauds museums, and Legoland amusement parks, which is one of Blackstone's private equity fund investments, also went public in the fourth quarter.
“In the fourth quarter alone, we completed four IPOs, including Hilton, Extended Stay, Brixmor and Merlin, which ended the year valued 35% above just their third quarter mark," Blackstone co-founder and chief executive Stephen Schwarzman said in a conference call with analysts and investors.
The value of Blackstone's private equity funds rose 11.5% in the quarter, while the value of its real estate funds appreciated 13.1%.
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