NEW YORK (TheStreet) -- Blackstone Group (BX) shares are flat at $33.94 in early market trading on Monday after the private equity firm agreed to sell its portfolio of 26 northern California office buildings to Los Angeles, CA-based Hudson Pacific Properties (HPP) for $3.5 billion.
This sale comes less than a week after Blackstone agreed to sell warehouse landlord IndCor Properties, which owns a portfolio of 117 million square feet of industrial real estate, to Singapore's sovereign wealth fund for $8.1 billion.
The sales continue the company's recent trend of selling off assets which netted the company over $10 billion in proceeds during the third quarter period, according to the company's most recent financial filings.
TheStreet Ratings team rates BLACKSTONE GROUP LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BLACKSTONE GROUP LP (BX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 0.8%. Since the same quarter one year prior, revenues rose by 42.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, BLACKSTONE GROUP LP's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- BLACKSTONE GROUP LP has improved earnings per share by 41.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKSTONE GROUP LP increased its bottom line by earning $1.98 versus $0.40 in the prior year. This year, the market expects an improvement in earnings ($3.25 versus $1.98).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Capital Markets industry average. The net income increased by 46.4% when compared to the same quarter one year prior, rising from $171.16 million to $250.51 million.
- You can view the full analysis from the report here: BX Ratings Report