Blackstone Group has marked down the value of its slower-growing real estate assets, including European and U.S. multifamily portfolios, due to rising interest rates and geopolitical volatility. Jon Gray, the firm’s president, noted that while some IPOs have been delayed—such as Air Trunk in Asia and Firmus in Australia—the company continues to raise significant capital. In the third quarter, Blackstone earned $1.32 per share in distributable earnings, slightly above forecasts, though fee earnings fell short at $1.26 per share.
Its property unit saw a 3.2% valuation drop for institutional funds, but core retail funds gained 1.6%, with Breit, its flagship retail property fund, up 7% for the year. Despite challenges in traditional real estate, Blackstone’s investments in data centers and warehouses remain strong. The firm attracted over $63 billion in new capital, bringing its 12-month fundraising total to a near-record $272 billion.
Gray emphasized that demand for digital infrastructure continues to outpace supply, constrained by physical and regulatory barriers.
Source: Financial Times Companies · Summarized by HeadlinesBriefing