BX · 10-Q · 2026Q2 · Full report
Real Estate Segment Performance
Blackstone Inc. · 2026-08-07 · Importance 64 · Surprise 56 · No source text
Real Estate Segment Distributable Earnings increased 32% year over year to $745.3 million in the second quarter of 2026 from $565.9 million, driven by a $110.0 million increase in Net Realizations and a $69.4 million increase in Fee Related Earnings. Fee Related Performance Revenues rose 171% to $242.7 million, primarily because of higher revenues in BREIT, while Fee Related Compensation increased 54% to $262.2 million. Net Realizations increased 495% to $132.3 million, as Realized Performance Revenues from BREP rose $167.3 million, partly offset by a $61.1 million increase in related compensation. For the six months ended June 30, 2026, Segment Distributable Earnings rose 23% to $1.3 billion, with digital infrastructure strength and improving U.S. logistics leasing supporting portfolio values despite elevated base rates and Middle East-related transaction volatility.
Key facts
- For the six months ended June 30, 2026, Real Estate unrealized appreciation increased by $529.1 million compared to unrealized depreciation in the six months ended June 30, 2025. source
- Realized Performance Revenues in Real Estate were $210,868 thousand for the three months ended June 30, 2026, an increase of $167,281 thousand (384%) versus prior year quarter, primarily attributable to higher Realized Performance Revenues in BREP. source
- Real Estate Segment Distributable Earnings were $745,276 thousand for the three months ended June 30, 2026, an increase of $179,406 thousand (32%) versus prior year quarter. source
- Real Estate Segment Distributable Earnings were $1,302,727 thousand for the six months ended June 30, 2026, an increase of $241,423 thousand (23%) versus prior year period. source
- Real Estate Net Realizations were $132,269 thousand for the three months ended June 30, 2026, an increase of $110,024 thousand (495%) versus prior year quarter. source
- For the three months ended June 30, 2026, the $543.8 million increase in Realized Investment Income was primarily attributable to an increase of $324.7 million in the Real Estate segment. source
- For the three months ended June 30, 2026, the $323.3 million increase in Unrealized Investment Income was primarily attributable to an increase of $450.4 million in the Real Estate segment. source
- Real Estate realizations for the six months ended June 30, 2026 were $13,654,328 thousand ($13.7 billion) and outflows were $5,001,796 thousand ($5.0 billion). source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | probable | +81.2% | Real Estate inflows for the three months ended June 30, 2026 were $8,192,794 thousand ($8.2 billion), realizations were $6,615,294… |
| revenue | negative | probable | -65.6% | Real Estate inflows for the three months ended June 30, 2026 were $8,192,794 thousand ($8.2 billion), realizations were $6,615,294… |
| revenue | negative | probable | -21.4% | Real Estate inflows for the three months ended June 30, 2026 were $8,192,794 thousand ($8.2 billion), realizations were $6,615,294… |
| net_income | positive | realized | +10.8% | For the three months ended June 30, 2026, the $543.8 million increase in Realized Investment Income was primarily attributable to an… |
| operating_income | positive | realized | +10.5% | For the six months ended June 30, 2026, Real Estate unrealized appreciation increased by $529.1 million compared to unrealized… |
| net_income | positive | realized | +6.4% | For the three months ended June 30, 2026, the $323.3 million increase in Unrealized Investment Income was primarily attributable to an… |
| revenue | negative | probable | -5.5% | Real Estate inflows for the three months ended June 30, 2026 were $8,192,794 thousand ($8.2 billion), realizations were $6,615,294… |
| operating_income | positive | realized | +4.8% | Real Estate Segment Distributable Earnings were $1,302,727 thousand for the six months ended June 30, 2026, an increase of $241,423… |
| operating_income | positive | realized | +3.6% | Real Estate Segment Distributable Earnings were $745,276 thousand for the three months ended June 30, 2026, an increase of $179,406… |
| revenue | positive | realized | +3.3% | Realized Performance Revenues in Real Estate were $210,868 thousand for the three months ended June 30, 2026, an increase of $167,281… |
| revenue | positive | realized | +2.2% | Real Estate Net Realizations were $132,269 thousand for the three months ended June 30, 2026, an increase of $110,024 thousand (495%)… |
| revenue | negative | realized | — | Fee-Earning Real Estate AUM was $277,420,420 thousand ($277.4 billion) at June 30, 2026, a decrease of $82,268 thousand from March 31, 2026. |