BX Blackstone Inc

Blackstone Group LP's second-quarter profit rose from a year earlier, helped by buoyant credit and real-estate markets.

The New York private-equity firm reported net income of $198.6 million, or 30 cents a share, up from $134.2 million, or 21 cents a share a year earlier.

Blackstone's second-quarter economic net income rose to 44 cents a share, from 43 cents a share for the year-earlier period, topping the 39-cent average estimate of analysts in a Thomson Reuters poll.

Economic net income includes changes in the value of unrealized investments as well as cash earnings.

The asset manager benefited from a rebound in bonds and loan prices and continued strength in real-estate markets, as low interest rates globally sent investors looking for yield. But it generated less cash to return to shareholders, amid a slowdown in mergers-and-acquisitions activity and a sluggish initial public offering market.

Blackstone's distributable earnings, the portion of profits in which shareholders would get a slice, fell to $503.5 million, or 42 cents a share, from $1.03 billion, or 88 cents a share, a year earlier.

The firm said it would pay a 36-cent dividend for the quarter, down from 74 cents for the same period a year earlier.

The carrying value of Blackstone's private-equity investments rose 2.5% in the quarter. Economic profits at its real estate unit—its largest, with $103.2 billion in assets—rose 53% while its performing- and distressed-debt investments benefited from "a significant rebound in energy investments," according to the firm.

Blackstone shares closed at $25.84 Wednesday, up 2.1% for the day but off 12% year-to-date.

Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com

(END) Dow Jones Newswires

July 21, 2016 07:55 ET (11:55 GMT)

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