Blackstone

Blackstone (BX) commonly known as one of the premier private equity houses has built a truly global real estate private equity franchise. While we cover number of REITs and REIT ETF.

We also like non REIT stocks but are on the periphery of the real estate space. The stock has been on a tear but recently it has faced a number of headwinds in the underlying investment investment from Fed raising interest rates to potential increase in carried interest tax.

Investment Thesis

We have kept an eye of BX due to its real estate presence which has been felt in the performance of REITs that are takeover targets. The mandate for Blackstone real estate fund has always been to invest throughout the cycle in up and down markets.

This is seen from the Equity Office merger near the top of the market which it profess to made multiple of original investment as well as picking up assets in distressed environment around the globe.

BX has more than $300 billion asset under management with significant room to invest its dry power. The funds which have been committed by the limited partners but not drawn by the general partner for investment.

Blackstone Dividend History

Date Dividend
Jul 2015 $0.74
Apr 2015 $0.89
Feb 2015 $0.78
Oct 2014 $0.44
Jul 2014 $0.55
Apr 2014 $0.35
Feb 2014 $0.58
Oct 2013 $0.23
Jul 2013 $0.23
Apr 2013 $0.30
Feb 2013 $0.42
Nov 2012 $0.10
Aug 2012 $0.10
May 2012 $0.10
Mar 2012 $0.22
Nov 2011 $0.10
Aug 2011 $0.10
May 2011 $0.20
Mar 2011 $0.32
Nov 2010 $0.10
Aug 2010 $0.10
May 2010 $0.10
Mar 2010 $0.30
Nov 2009 $0.30
Aug 2009 $0.30
May 2009 $0.30
Nov 2008 $0.30
Aug 2008 $0.30
May 2008 $0.30
Mar 2008 $0.30
Nov 2007 $0.30

 

BX has been collecting the performance fee at this stage of the cycle where the early funds are being harvested. We feel this can be sustained in the near future as underlying direct real estate markets is doing well on back of stronger economy.

We are however cautious in the medium term futures as current earnings are inflated due to low tax rates. If any revision to carry interest is made post the 2016 election. Then future Blackstone earnings will get hit and deflated by at least 10 to 20%. This is not helped by the issue being a rally cry in the election primaries.