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lackstone exceeded earnings expectations in the second quarter, driven by growth in its real estate platform despite a challenging market environment. The private equity giant reported $1.21 per share in earnings, beating analyst estimates of $1.09.

    The company saw significant inflows during the quarter, with $52.1 billion netted compared to $61.6 billion in the previous quarter. This included $7.2 billion in its real estate funds, including $1.1 billion in BREIT, a non-listed REIT. Jonathan Gray, Blackstone's president and COO, noted that BREIT had its best quarterly fundraising performance in two and a half years.

    Gray attributed the growth potential of Blackstone's real estate business to a decline in new supply working through the system, with market spreads returning to pre-tariff levels. He predicted a more favorable supply-demand dynamic by the end of this year and into next year, driven by reduced construction activity in logistics and apartments.

    Assets under management rose 13% from last year to $1.21 trillion, while fee-earning AUM increased 10% to $887.1 billion. Michael Chae, Blackstone's vice chairman and CFO, said real estate fund values were "largely stable" due to strength in data centers within its core-plus platform.

    The company's life sciences portfolio faced headwinds due to new supply coming online and tenant caution, leading to a 38% drop in net accrued performance revenues. However, Gray remains optimistic about the sector's potential, citing the impact of AI on industry demands and the limited number of groups with expertise to meet these needs.