Shares in Blackstone Group suffered their biggest decline since the buyout firm floated in June, as it reported a quarterly group loss in its first results filing as a public company.
Blackstone, one of the world’s largest buyout firms, announced a $113.2 million (£54.9 million) loss for the third quarter, compared with a $372.5 million profit the year before when it was privately-owned.
The loss included the impact of $802.6 million in non-cash charges for compensation and other charges related to its IPO this year.
Real Estate
Credit market turmoil helped to reduce revenue from its real estate unit.
Hit by commercial property prices, reducing investment gains and performance, revenue from its real estate unit declined by 44 percent, from $196.1 million to $109.1million.
However, overall, revenue rose 14 percent to $526.7 million from $461.5 million the prior year.
Challenge and Opportunity
"This environment provides us with both challenges and opportunities," said Chairman and Chief Executive Stephen Schwartzman.
"While it will be difficult to structure very large leveraged transactions in corporate private equity and real estate until the credit markets improve, pricing of assets is more favorable."
The company’s shares slid 8.3 percent or $2.02 to $22.26 at the close Monday.
November 13, 2007