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Blackstone now with $7B in single-family investments

  • Don't read too much into marks, says Blackstone (BX +0.1%) CEO Stephen Schwarzman on the earnings call, noting one sale this quarter netted the company 7x its investment. At the height of the financial crisis, Blackstone was forced to mark the asset at 15 cents on the dollar.
  • Also, he continues, don't read too much into asset sales (particularly in real estate/lodging) as marking some sort of market top. Blackstone is an active player and is buying alongside the selling. The comments stand in contrast to COO Tony James' pre-call comments on hesitancy to buy because "valuations (are) becoming full."
  • More from James: The company now has $7B invested in single-family homes and says it could find a strategic buyer to sell to if a REIT/IPO exit isn't possible. "Our results (in single-family) conflict with the notion of a top in real estate."
  • The stock has recovered from a sizable premarket drop after reporting a hit to performance fees amid declines in certain stock holdings.
  • Earlier: Q3 results.
Comments (3)
  • Darren McCammon
    , contributor
    Comments (848) | Send Message
     
    Considering that the other institutions are "slowing down their purchases", flat out selling or trying to securitize, IPO or otherwise get out of their holdings, I'll stick with the "valuations becoming full" comment. I can tell you in my area, Reno NV, asking prices are dropping.
    17 Oct 2013, 12:44 PM Reply Like
  • mobyss
    , contributor
    Comments (1840) | Send Message
     
    Same with Phoenix Metro - prices topped out about six months ago.
    17 Oct 2013, 01:20 PM Reply Like
  • J Mintzmyer
    , contributor
    Comments (3604) | Send Message
     
    Of course he's going to talk his book and deny a top. However, why else would BX slow down buying and begin to pursue a REIT IPO exit?
    17 Oct 2013, 01:05 PM Reply Like
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