BX · 10-Q · 2026Q3 · Full report
Real Estate Segment Performance
Blackstone Inc. · 2026-11-06 · Importance 48 · Surprise 40 · Matches filing data
Real Estate Segment Distributable Earnings fell 10% year over year to $553.7 million in the third quarter of 2026, as Fee Related Earnings declined $50.6 million and Net Realizations declined $14.1 million. Nine-month Segment Distributable Earnings rose 11% to $1.856 billion, supported by a $304.2 million increase in Fee Related Performance Revenues, primarily from BREIT, and a $157.5 million increase in Realized Performance Revenues, primarily from BREP. Third-quarter Management and Advisory Fees, Net declined $60.0 million to $628.8 million, primarily as Base Management Fees fell $62.7 million across BREP and Core+, partly offset by BREIT growth. Nine-month Fee Related Compensation increased 28% to $651.4 million, reflecting higher Fee Related Performance Revenues; nine-month Management and Advisory Fees, Net fell $67.6 million to $2.033 billion.
Key facts
- Blackstone’s Real Estate segment had a $63.4 million decrease in third-quarter unrealized Investment Income, primarily due to unrealized depreciation of its investment in certain BREDS and Core+ funds. source
- Real Estate segment income increased $455.5 million, primarily from higher realized gains in BREP and higher Performance Revenues in BREIT. source
- Real Estate unrealized investment income increased $465.6 million, primarily due to lower unrealized depreciation of investments in certain BREP funds. source
- Real Estate Segment Distributable Earnings were $1.9 billion for the nine months ended September 30, 2026, up $176.8 million from $1.7 billion in 2025. source
- Real Estate Fee Related Earnings were $1.7 billion for the nine months ended September 30, 2026, up $81.1 million from $1.6 billion, primarily reflecting $304.2 million higher Fee Related Performance Revenues, partly offset by $142.2 million higher compensation and $67.6 million lower Management and Advisory Fees, Net. source
- Real Estate Segment Distributable Earnings were $553.7 million for the three months ended September 30, 2026, down $64.7 million from $618.3 million in 2025. source
- Real Estate Fee Related Earnings were $499.2 million in Q3 2026, down $50.6 million from $549.8 million in Q3 2025. source
- Real Estate Net Realizations were $197.0 million in the first nine months of 2026, up $95.7 million from $101.3 million, primarily due to $157.5 million more Realized Performance Revenues partly offset by $55.2 million more compensation. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +15.2% | Real Estate unrealized investment income increased $465.6 million, primarily due to lower unrealized depreciation of investments in… |
| operating_income | positive | realized | +14.9% | Real Estate segment income increased $455.5 million, primarily from higher realized gains in BREP and higher Performance Revenues in BREIT. |