KKR reported a drop in fourth-quarter net income year-over-year for 2021.

The private equity giant tallied $507.6 million in net income for Q4 2021, down from $1.48 billion for the same period in 2020, according to its earnings report Tuesday. The firm reported $4.6 billion in net income for all of 2021, up from $1.95 billion the year before. KKR's stock price was down over 6% at market close following the report. 

Distributable earnings—the allocation of cash that can be returned to investors—jumped significantly to $1.4 billion in Q4 2021, up 158% YoY.

Real estate made up KKR's largest holding after its private equity holdings, as the firm completed $4 billion in new investments through its real estate platform in Q4.

Real estate dealings have highlighted recent private equity earnings releases.

Earlier this month, The Carlyle Group reported its real estate investments significantly outperformed its PE investments in Q4, with returns of 11% and 6%, respectively. And in January, Blackstone reported its real estate investments climbed 19.2%, while its private equity investments rose 4.8%.

KKR’s assets under management grew to $470.5 billion in the fourth quarter, up 87% YoY.
 

Related read: Carlyle tops $300B in AUM, sees real estate beat PE investments in Q4


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