July 25, 2016
Riding the wave of gains in real estate, as well as its credit portfolios, Blackstone Group LP reported quarterly profits increased 2%. Economic net income increased to $520 million from $508 million a year earlier.
Increases were fueled by a series of small gains. Sales of CRE office properties, as well as stakes in other buyout firm’s funds, pushed real estate and equity realizations to $7.2 billion for the quarter. Among the CRE activity included selling parts of its Equity Office Properties Trust portfolio and a stake in Hong Kong-based real estate company Tysan Holdings Ltd.
Blackstone’s Tony James says it experienced “stable but not out-sized earnings,” noting that realizations for the quarter remained strong and the giant alternative asset manager expects to “be in active disposition mode for the balance of this year.”
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