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Blackstone's Real Estate Income Takes a Dive

Blackstone's Real Estate Income Takes a Dive

Blackstone's low fourth-quarter profits arrived thanks in part to declining returns on the private equity giant's real estate assets. The firm announced today that its economic net income, a measure including unrealized investment gains fell 6% to $1.4B compared to the year-ago period.

The brunt of that loss came from real estate, with Blackstone's biggest business sector's ENI declining 38%, to $577.4M. But that fall did come in comparison to the fourth quarter of 2013, when Blackstone won big off its Hilton Worldwide IPO. And its credit business fell even more dramatically, taking a 57% stumble. Blackstone also announced it had raised $6B of new PE capital last quarter.