The Blackstone Group L.P. (NYSE:BX) reported soaring profits during the first quarter of this year. The asset management company posted a 28 percent increase in profits after the sale of several assets from its hedge fund, credit, real estate and private equity units. Its revenue jumped 29 percent year over year, and the company said the first quarter of this year was its second best quarter for cash earnings since it went public.
The company’s economic net income was $628.3 million, compared to $491 million in the same quarter a year ago. The resulting earnings per share were 55 cents, which is just slightly ahead of consensus. Bloomberg’s consensus for The Blackstone Group L.P. (NYSE:BX)’s first quarter of 2013 was earnings per share of 53 cents on $1.1 billion in revenue.
Blackstone said real estate makes up over half of its earnings, and that divisions economic net income was $352.9 million, an increase of 32 percent. The firm’s real estate assets recorded a 6.3 percent appreciation rate during the quarter. Private equity net income was $103.2 million, an increase of 15 percent, and the portfolio appreciated 7.9 percent during the quarter.
The firm also set a new record for total assets under management, which increased 15 percent to $218 billion. Also fee-paying assets under management rose 9 percent to $171 billion.
Blackstone declared a 30 cent per common share quarterly distribution to shareholders of record on April 29. The dividend will be paid on May 6.
Shares of The Blackstone Group L.P. (NYSE:BX) rose initially in pre-market trading, but as of this writing, the stock had fallen 1 percent since opening bell.