KKR & Co Inc (NYSE:KKR) stock rose 1.25% (As on November 2, 11:31:09 AM UTC-4, Source: Google Finance) after the company’s after-tax distributable earnings fell 11% in the third quarter from a year earlier on a steep drop in transaction fees, although the result came in ahead of expectations. Initial public offerings and debt refinancings, which KKR’s capital markets unit helps arrange, were down sharply this quarter, while the Federal Reserve’s hiking of interest rates pushed about financing costs and fueled stock market volatility. After-tax distributable earnings fell to $823.7 million. KKR said income from its capital markets unit tumbled 41% to $116.1 million a year earlier. Income from investments made out of its balance sheet fell to $285 million, a 36% slide as the firm cashed out fewer assets from its private equity portfolio amid the volatility. KKR said its private equity funds depreciated by 4% during the third quarter. Opportunistic real estate funds were down 1% while leverage credit funds gained 1%. By contrast, Blackstone Inc reported a 0.3% decline in its corporate private equity funds and a 0.6% drop in its opportunistic real estate funds. KKR’s fee-related earnings rose 2% to $541.8 million due to an increase in management fees owing to strong fundraising and the closing of its acquisition of Japanese real estate asset manager Mitsubishi Corp-UBS Realty Inc. KKR struck deals worth $16 billion during the quarter, raised $13 billion of new capital, generated $496.5 million as carried interest, and held $113 billion of unspent capital. Total assets under management stood at $496 million. The firm declared a regular dividend of 15.5 cents per share.

KKR in the third quarter of FY 22 has reported the adjusted earnings per share of 93 cents, beating the analysts’ estimates for the adjusted earnings per share of 85 cents. The company had reported the adjusted revenue of $1.86 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $1.56 billion.

On the other hand, the company has announced that KKR Real Estate Select Trust Inc. (“KREST” or the “Fund”) has completed the purchases of two Class A multifamily properties with a combined 1,380 units from different sellers in separate transactions. The latest additions to KREST’s portfolio include a full-service, LEED Silver multifamily property located in Downtown Brooklyn and a highly amenitized multi-building asset located on the border of the Main Line and West Philadelphia.