Monday, April 25, 2011

Change in Distribution Policy Not a Concern for Blackstone

Mike Maher submits:

After reading its earnings release, I noticed an interesting note out of The Blackstone Group (BX) concerning the distribution. For FY 2011, the firm plans on distributing

to its common unitholders substantially all of The Blackstone Group L.P.'s net after-tax share of annual Distributable Earnings less the amount of its realized investment gains.

This is a change from last year, when the firm did not make this deduction. The release says Blackstone sees potential to invest the money back into its business, and the amount will be deducted from the fourth quarter distribution. Blackstone's policy is to base the first three quarterly distributions on assumptions as to what the year's distributable earnings will be, and then distribute the remainder of the distributable earnings in the fourth quarter. Right now the company is paying $0.10 a share for the first three quarters, and a larger payment for the last quarter. For


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