Blackstone Group Posts Narrower 3rd-quarter Loss

NEW YORK (AP) — Hedge fund and private equity firm The Blackstone Group LP on Friday posted a narrower loss for the third quarter, as its private equity holdings gained value and its real estate investments stabilized.

Adjusted results topped expectations, and positive comments from its CEO helped lift the stock in afternoon trading.

Blackstone said its loss after paying preferred dividends fell to $176.2 million, or 91 cents per common unit, from $340.3 million, or $1.56 per unit in the 2008 third quarter.

Adjusted to exclude initial public offering and acquisition-related charges, the firm reported a profit of $275.3 million, or 25 cents per share, compared with a loss of $502.6 million, or 45 cents per share, last year.

Blackstone's revenue turned positive, to $597 million, from negative revenue of $160.3 million in the year-ago quarter amid deterioration of its vast real estate holdings. Management and advisory fees, however, fell 18 percent to $367.6 million.

The results topped estimates of analysts polled by Thomson Reuters, who had expected profit of 15 cents per unit and revenue of $450.6 million, on average. Analyst estimates typically exclude one-time gains and charges.