Market gains in publicly-held companies and book value gains in the real estate portfolio will allow Blackstone to increase the quarterly dividend by 5 cents to 15 cents. It is also anticipated that the firm will announce next February that the 4Q dividend will be in excess of 50c if market conditions remain stable. To return back to a 4% dividend yield, the stock would need to hit $20 per share. Something to watch.
Blackstone has been acquiring real estate and buying debt on real estate at a pretty good clip. Real estate should perform well in the coming years, and we might see sales of portfolios when they are ripe. BX has a large portfolio of real estate, Hotels, shopping centers and land. Take a look at REIT performance. BX should do at least this well if not better.
In other sector news,
(+) WETF, Goldman Sachs adds the ETF sponsor to its Conviction Buy List with a $9 price target.
(+) CS, Federal and state authorities reportedly are investigating mortgage-backed securities packaged and sold by the bank, people familiar with the probe tell Reuters.
(+) BX, Reportedly near deal to sell the Chiswick Park office complex in west London for $1.3 billion, a 67% gain over its purchase price, two people with knowledge of the matter told Bloomberg.
(+) LSE, JMP Securities starts coverage with an Outperform rating and a $7 price target.