BLACKSTONE MORTGAGE TRUST, INC.
For the period ended Jun 30, 2025. Filed Jul 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 30, 2025
BXMT$11.16-2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-30.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
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508 unchanged; 172 reworded; 82 added; 65 removed; 12 previous and 10 current paragraphs rearranged.
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A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (82)
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Earlier this year, tariff announcements in the U.S. and ongoing global trade negotiations contributed to significant
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lower market volatility have contributed to stronger real estate transaction activity. We believe commercial real estate is
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increasingly well-positioned for a recovery from its cyclical downturn, which is further supported by continuing low supply
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and availability of debt. Continued deceleration in inflation may also encourage the lowering of interest rates, which should
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be constructive for real estate values. Nevertheless, a resurfacing of policy-driven uncertainty or market volatility could
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(3)Represents depreciation of REO assets and amortization of intangible real estate assets and liabilities.
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$264.7 million, which resulted in$94.8 million of net interest income.
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(2)Includes our$416.4 million share of$1.4 billion of loans that were acquired by our Bank Loan Portfolio Joint
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Venture during thethree months ended June 30, 2025. This reflects our 29% ownership interest in the joint venture,
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which is included in investments in unconsolidated entities on our consolidated balance sheets.
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The remaining 2% of our loans by principal balance earned a fixed rate of interest.
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interests that we have sold, but that remain included in our consolidated financial statements. Our asset-specific debt
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and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
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interests that we have sold, but that remain included in our consolidated financial statements. Our asset-specific debt
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and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral loans.
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$4.1 million decrease in our general CECL reserves and charge-offs of our CECL reserves of$45.1 million, bringing our
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reserves was primarily as a result oftwo additional loans that were impaired during thethree months ended June 30, 2025,
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of which one is secured by a life sciences / studio property and the other is secured by an office asset. The office sector is
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loans. The charge-off of the CECL reserves was a result of a resolution ofone previously impaired loan that was repaid
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with proceeds from the sale of an office asset in San Jose, CA securing the loan. Thedecrease in our general CECL
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macroeconomic conditions.
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the junior loan participation sold, with proceeds from a sale of the collateral securing the loan. As of June 30, 2025, all
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2025, we referredone loan to MTRCC.
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venture totaled$52.2 million. During thesix months ended June 30, 2025 we contributed$50.1 million to the joint venture,
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didnot receive any distributions, and recorded a$1.2 million loss from unconsolidated entities in our consolidated
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statements of operations.
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Bank Loan Portfolio Joint Venture
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In the second quarter of 2025, we entered into our Bank Loan Portfolio Joint Venture with a Blackstone-advised
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investment vehicle that acquired a$1.4 billion portfolio of 171 performing senior commercial real estate loans from a
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regional bank. We have a 29% ownership interest in the joint venture and our allocable share of the loans is$416.4 million.
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The loans are secured primarily by retail and multifamily properties located across various markets in the Mid-Atlantic
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region, are primarily fixed rate, and were acquired at a discount to par.
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Our Bank Loan Portfolio Joint Venture is recorded on our consolidated balance sheets as an investment in unconsolidated
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entities. As of June 30, 2025, our investment in the joint venture totaled$55.9 million. During the three months ended
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costs related to the portfolio acquisition.
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(5)During thethree and six months ended June 30, 2025, we recorded$40.3 million and$67.9 million, respectively, of
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(6)Excludes amounts related to our investments in unconsolidated entities.
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Income from loans and other investments, netincreased$5.0 million during thethree months ended June 30, 2025
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compared to thethree months ended March 31, 2025. Theincrease was primarily due to an increase in the weighted-
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three months ended June 30, 2025 reflected a full quarter of income recognition compared to a partial period during the
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equity markets. There is significant uncertainty as to the outcome of ongoing global trade negotiations, the extent of
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retaliatory measures taken by other countries and the ultimate impact on the U.S. and global economies. A prolonged
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period of policy-driven uncertainty and continued market volatility increases the likelihood of a slowdown in the U.S. and
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global economies and could impact the ongoing recovery in the commercial real estate market, which could adversely
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At the same time, the announced tariffs are likely to increase construction costs and further reduce already constrained new
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should be supportive of real estate values over time, subject to inflation continuing to subside and absent recessionary
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condition.
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(6)Represents a contingent liability related to a sale of a loan.
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2025, which resulted in$89.8 million of net interest income during the three months ended March 31, 2025.
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indexed to SOFR. In addition to cash coupon, all-in yield includes the amortization of deferred origination and
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increase in our asset-specific CECL reserves, primarily as a result ofone additional loan that was impaired during the three
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months ended March 31, 2025, which was secured by an office asset. The office sector is generally facing reduced tenant
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increase in the CECL reserves was partially offset by a resolution and a$41.8 million charge-off of the CECL reserve on
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one previously impaired loan. The resolution was the result of an acquisition of title through a deed-in-lieu of foreclosure
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transaction related to an office property located in Chicago, IL, which is now included on our consolidated balance sheet as
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an REO asset.
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recognition and our CECL reserves.
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we didnot refer anyloans to MTRCC.
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(5)During thethree months ended March 31, 2025, we recorded$27.6 million of interest expense related to our
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securitized debt obligations.
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exposure.
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Income from loans and other investments, netdecreased$11.7 million during thethree months ended March 31, 2025
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average principal balance of our loan portfolio by$2.2 billion during thethree months ended March 31, 2025, and (ii) a
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decrease in average floating rate indices quarter-over-quarter. This was partially offset by a decrease in the weighted-
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Revenue from REO increased by$25.2 million during thethree months ended March 31, 2025 compared to thethree
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months ended December 31, 2024. The increase was primarily due to the acquisition offour additional REO assets during
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thethree months ended December 31, 2024, with thethree months ended March 31, 2025 reflecting the first full quarter of
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activity for these assets, as well asone additional REO asset acquired during thethree months ended March 31, 2025.
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2024, with thethree months ended March 31, 2025 representing the first full quarter of activity for these assets, as well as
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a$5.7 million decrease in other expenses, which represents a contingent liability related to the sale of a loan that was
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recorded during thethree months ended December 31, 2024, and (ii) a$1.3 million decrease in management fees due to a
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decrease in Distributable Earnings.
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mix, as loan repayments were offset by new originations, as well as changes in the historical loss rate, and (ii)one
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additional loan that was impaired during thethree months ended March 31, 2025, which was secured by an office asset.
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loan. These increases were partially offset by a reversal of the asset-specific CECL reserve as a result of the resolution of
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one impaired loan above our carrying value, as well as a net decrease in asset-specific CECL reserves on existing impaired
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$2.7 million loss during thethree months ended December 31, 2024. This decrease was primarily due to start-up costs
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during thethree months ended March 31, 2025.
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months ended December 31, 2024 primarily due to a tax refund received in the prior period.
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Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2024. In addition to historical
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Form 10-Qand with our Annual Report on Form 10-K for the year ended December 31, 2024. In addition to historical
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Blackstone’s real estate platform. Blackstone’s real estate group is the largest owner of commercial real estate globally
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Blackstone Real Estate. Blackstone Real Estate is the largest owner of commercial real estate globally with over 12,500
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with over 12,500 commercial assets and a proven track record of successfully navigating market cycles and emerging
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commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through
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stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone
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periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply
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platform deeply informs our credit and underwriting process, and we believe gives us the tools to expertly manage the
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informs our credit and underwriting process, and we believe gives us the tools to expertly manage the assets in our
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assets in our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.
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portfolio and work with our borrowers throughout periods of economic stress and uncertainty.
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Recently announced tariffs in the U.S. have contributed to significant and ongoing uncertainty and volatility of debt and
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uncertainty and volatility of debt and equity markets. More recently, greater clarity in the U.S. policy environment and
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supply starts, including in certain sectors in which our portfolio is concentrated, such as multifamily and industrial. This
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(including in sectors in which our portfolio is concentrated, such as multifamily) and continued improvement in the cost
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affect us, our borrowers, their tenants and the value of the real estate assets related to our investments.
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adversely affect us, our borrowers, their tenants and the value of the real estate assets related to our investments.
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For thethree months ended March 31, 2025, we recorded basic netloss per share of$0.00, declared a dividend of $0.47 per
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For thethree months ended June 30, 2025, we recorded basic netearnings per share of$0.04, declared a dividend of $0.47
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share, reported$0.17 per share of Distributable Earnings, and reported$0.42 per share of Distributable Earnings prior to
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per share, reported$0.19 per share of Distributable Earnings, and reported$0.45 per share of Distributable Earnings prior
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charge-offs. In addition, our book value as of March 31, 2025 was$21.42 per share, which is net of cumulative CECL
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to charge-offs. In addition, our book value as of June 30, 2025 was$21.04 per share, which is net of cumulative CECL
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(1)Represents net (loss) income attributable to Blackstone Mortgage Trust. Refer to Note 15 to our consolidated
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(1)Represents net income (loss) attributable to Blackstone Mortgage Trust. Refer to Note 15 to our consolidated
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(1)Represents net (loss) income attributable to Blackstone Mortgage Trust.
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(1)Represents net income (loss) attributable to Blackstone Mortgage Trust.
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(3)Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in
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(4)Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in
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(4)Allocable share of adjustments related to unconsolidated entities reflects our share of (i) non-cash items such as
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(5)Allocable share of adjustments related to unconsolidated entities reflects our share of (i) non-cash items such as
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(5)Represents (i) the non-cash income recognized under GAAP related to our Agency Multifamily Lending
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(6)Represents (i) the non-cash income recognized under GAAP related to our Agency Multifamily Lending
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During thethree months ended March 31, 2025, we originated or acquired$1.6 billion of loans. Loan fundings during the
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During thethree months ended June 30, 2025, we originated or acquired$2.6 billion of loans. During thethree months
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three months ended March 31, 2025 totaled$1.7 billion and loan repayments and sales totaled$1.8 billion. We generated
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ended June 30, 2025, loan fundings totaled$1.8 billion and loan repayments and sales totaled$1.6 billion. During thethree
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interest income of$332.1 million and incurred interest expense of$242.2 million during thethree months ended March 31,
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months ended June 30, 2025, we generated interest income of$359.5 million and incurred interest expense of
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The following table details overall statistics for our loans receivable portfolio as of March 31, 2025 ($ in thousands):
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The following table details overall statistics for our loans receivable portfolio ($ in thousands):
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March 31, 2025, substantially all of our loans by principal balance earned a floating rate of interest, primarily
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June 30, 2025,98% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.
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methods, if any. As of March 31, 2025, 17% of our loans by principal balance were subject to yield maintenance or
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methods, if any. As of June 30, 2025, 26% of our loans by principal balance were subject to yield maintenance or
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other prepayment restrictions and 83% were open to repayment by the borrower without penalty.
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other prepayment restrictions and 74% were open to repayment by the borrower without penalty.
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was 1.13%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was
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was 1.11%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was
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As of March 31, 2025, 95% of our loans were performing with risk ratings of “1” through “4,” and the remaining 5% were
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As of June 30, 2025, 94% of our loans were performing with risk ratings of “1” through “4,” and the remaining 6% were
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certain investments. As of March 31, 2025, we had an aggregate$555.4 million asset-specific CECL reserve related to 13
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certain investments. As of June 30, 2025, we had an aggregate$558.8 million asset-specific CECL reserve related to 14 of
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of our loans receivable, with an aggregate amortized cost basis of$1.5 billion, net of cost-recovery proceeds. This CECL
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our loans receivable, with an aggregate amortized cost basis of$1.6 billion, net of cost-recovery proceeds. This CECL
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advantages derived from our position as part of Blackstone’s real estate platform. Blackstone’s real estate group is the
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advantages derived from our position as part of Blackstone Real Estate’s real estate platform. Blackstone Real Estate is the
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As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio,
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As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio, assess
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assesses the performance of each loan, and assigns it a risk rating between “1” and “5”, from less risk to greater risk. Our
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the performance of each loan, and assign it a risk rating between “1” and “5”, from less risk to greater risk. Our loan
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loan portfolio had a weighted-average risk rating of 3.0 as of both March 31, 2025 and December 31, 2024, respectively.
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portfolio had a weighted-average risk rating of 3.1 and 3.0 as of June 30, 2025 and December 31, 2024, respectively.
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During thethree months ended March 31, 2025, we recorded a netincrease of$49.4 million in the CECL reserves against
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During thethree months ended June 30, 2025, we recorded a netdecrease of$690,000 in the CECL reserves against our
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our loans receivable portfolio, primarily due to a$32.9 million increase in our general CECL reserves, offset by charge-
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loans receivable portfolio, primarily driven by a$48.4 million increase in our asset-specific CECL reserves, offset by a
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offs of our CECL reserves of$41.8 million, bringing our total loans receivable CECL reserve to$741.5 million as of
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total loans receivable CECL reserve to$740.9 million as of June 30, 2025. The increase in our asset-specific CECL
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The office sector is generally facing reduced tenant and capital markets demand in recent years. These impairments are
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generally facing reduced tenant and capital markets demand in recent years. Impairments are each determined individually
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included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events
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underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts
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borrower’s ability to pay the contractual amounts due under the terms of the loan. The income accrual was suspended on
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that impact the borrower’s ability to pay the contractual amounts due under the terms of the loan. The income accrual was
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theone loan that was impaired during the three months ended March 31, 2025, as the recovery of income and principal was
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suspended on thetwo loans that were impaired during thethree months ended June 30, 2025, as the recovery of income and
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doubtful. During the three months ended March 31, 2025, we recorded$2.8 million of interest income on this loan. This
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principal was doubtful. During the three months ended June 30, 2025, we recorded$5.3 million of interest income on these
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as a result of changes in the specific credit quality factors for such loans. These factors included, among others, (i) the
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As of June 30, 2025, we had an aggregate$558.8 million asset-specific CECL reserve related to 14 of our loans receivable,
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including any required payment of interest. Refer to Note 2 to our consolidated financial statements for further discussion
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certain of our floating rate loans.
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$1.4 billion for thethree months ended June 30, 2025 compared to thethree months ended March 31, 2025.
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and capital markets demand in recent years. These impairments are each determined individually as a result of changes in
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months ended March 31, 2025 primarily due to an increase in the income tax provisions related to our taxable REIT
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demand in recent years. These impairments are each determined individually as a result of changes in the specific credit
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quality factors for such loans. These factors included, among others, (i) the underlying collateral performance, (ii)
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recovery and nonaccrual methods, if any.
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extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans
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and capital markets demand in recent years. Impairments are each determined individually as a result of changes in the
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specific credit quality factors for such loans. These factors included, among others, (i) the underlying collateral
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2025 compared to thethree months ended December 31, 2024.
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During thethree months ended March 31, 2025, we declared dividends of $0.47 per share, or$80.6 million in aggregate.
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compared to thethree months ended March 31, 2024. Thedecrease was primarily due to (i) a decrease in the weighted-
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three months ended March 31, 2025 compared to thethree months ended March 31, 2024.
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The office sector is generally facing reduced tenant and capital markets demand in recent years. These impairments are
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each determined individually as a result of changes in the specific credit quality factors for such loans. These factors
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included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events
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of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the
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discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any.