BLACKSTONE MORTGAGE TRUST, INC.
For the period ended Sep 30, 2025. Filed Oct 29, 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.
Sep 30, 2025 · Filed Oct 29, 2025
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OPERATIONSCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
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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.
Compared 772 previous paragraphs and 793 current paragraphs.
486 unchanged; 193 reworded; 101 added; 82 removed; 11 previous and 13 current paragraphs rearranged.
Tables are not compared: 29 previous and 29 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (101)
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During the third quarter, real estate transaction activity continued to strengthen as the recovery of commercial real estate
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from its cyclical downturn continued, further supported by the decline in construction starts and continuing low supply
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cost and availability of debt.
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The Federal Reserve lowered interest rates in September 2025, and interest rates are likely to continue to decline.
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for real estate values. Nevertheless, the timing, direction and extent of any future interest rate changes remain uncertain.
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CECL reserves of$4.16 per share.
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(1)Representsnet income attributable to Blackstone Mortgage Trust.
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II. Investments
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Loan Originations
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of a loan portfolio acquired by our Bank Loan Portfolio Joint Venture.
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our consolidated balance sheets.
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Loan Portfolio Activity
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(1)Excludes amounts held by our Bank Loan Portfolio Joint Venture, which is included in investments in
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was 1.90%.
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structurally non-recourse and term-matched to the corresponding collateral loans. Geographic locations that
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capitalized, and experienced sponsors.
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including charge-offs of our CECL reserves of$42.1 million. This was offset by an$8.2 million increase in our general
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as a result of additional CECL charge-offs.
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The charge-offs primarily related totwo previously impaired loans secured by a hospitality asset in New York, NY and an
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office asset in Atlanta, GA, that were resolved and transferred to REO during thethree months ended September 30, 2025
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pursuant to loan modifications that resulted in us consolidating the collateral assets. Refer to Notes 4 and 20 for further
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information.
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REO, assets resulting from transactions in which we assume legal title, physical possession, or control of the collateral
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consolidated statements of operations.
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investment vehicle. In the second quarter of 2025, the Bank Loan Portfolio Joint Venture acquired a$1.4 billion portfolio
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acquired at a discount to par. In the third quarter of 2025, the Bank Loan Portfolio Joint Venture acquired a$606.0 million
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portfolio of 425 performing senior commercial real estate loans from a regional bank. The loans are secured primarily by
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an aggregate 35% ownership interest in the joint venture as of September 30, 2025.
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Loan Portfolio Financing
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our portfolio financing ($ in thousands):
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(5)During thethree and nine months ended September 30, 2025, we recorded$40.0 million and$107.8 million,
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statements for further information.
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Floating Rate Loan Portfolio
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(amounts in thousands):
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to the indebtedness of our unconsolidated entities.
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Income from loans and other investments, netincreased$4.1 million during thethree months ended September 30, 2025
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September 30, 2025 compared to thethree months ended June 30, 2025, and (ii) a$3.8 million increase as a result of the
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receipt of unaccrued default interest upon repayment of a loan that was previously in maturity default during thethree
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portfolio by$681.2 million during thethree months ended September 30, 2025.
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Revenue from REOdecreased by$5.1 million during thethree months ended September 30, 2025 compared to thethree
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Removed paragraphs (82)
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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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reserves of$4.39 per share.
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II. Investment Portfolio
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Loan Portfolio Overview
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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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junior participations sold.
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currencies.
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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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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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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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suspended on thetwo loans that were impaired during thethree months ended June 30, 2025, as the recovery of income and
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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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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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reserves was primarily as a result ofa continued improvement in the credit quality of our current portfolio as well as
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macroeconomic conditions.
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As of June 30, 2025, one of our performing loans with an amortized cost basis of$195.0 million, inclusive of a
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$50.0 million junior loan participation sold, was past its current maturity date, was greater than 90 days past due on its
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interest payment, and had a risk rating of “3.” This loan was not impaired as of June 30, 2025 as the estimated fair value of
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the underlying collateral exceeded our basis in the loan. Subsequent to June 30, 2025, this loan was repaid in full, including
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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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REO, investments resulting from us acquiring title to or taking control of a loan’s underlying real estate collateral. As of
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statements of operations.
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regional bank. We have a 29% ownership interest in the joint venture and our allocable share of the loans is$416.4 million.
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costs related to the portfolio acquisition.
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Portfolio Financing
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portfolio financing ($ in thousands):
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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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statements for additional information.
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Floating Rate Portfolio
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in thousands):
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(4)Excludes$50.0 million of loan participations sold, as of June 30, 2025. Our loan participations sold are structurally
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non-recourse and term-matched to the corresponding loans, and have no impact on our net floating rate exposure.
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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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$1.4 billion for thethree months ended June 30, 2025 compared to thethree months ended March 31, 2025.
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ended March 31, 2025. Theincrease was primarily due to the acquisition ofone additional REO asset in February, as the
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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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Reworded paragraphs (193)
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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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(including in sectors in which our portfolio is concentrated, such as multifamily), as well as continuing improvement in the
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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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Continued deceleration in inflation should also encourage further lowering of interest rates, which would be constructive
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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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uncertainty and volatility of debt and equity markets. More recently, there has been greater clarity in the U.S. policy
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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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environment and lower market volatility. Nevertheless, a resurfacing of policy-driven uncertainty or market volatility could
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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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For thethree months ended September 30, 2025, we recorded basic netearnings per share of$0.37, declared a dividend of
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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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$0.47 per share, reported$0.24 per share of Distributable Earnings, and reported$0.48 per share of Distributable Earnings
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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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prior to charge-offs. In addition, our book value as of September 30, 2025 was$20.99 per share, which is net of cumulative
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(1)Represents net income (loss) attributable to Blackstone Mortgage Trust. Refer to Note 15 to our consolidated
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(1)Represents net income attributable to Blackstone Mortgage Trust. Refer to Note 15 to our consolidated financial
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financial statements for the calculation of diluted net (loss) income per share.
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statements for the calculation of diluted net (loss) income per share.
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GAAP net income (loss), but rather as a component of other comprehensive income in our consolidated financial
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GAAPnet income, but rather as a component of other comprehensive income in our consolidated financial
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(5)Allocable share of adjustments related to unconsolidated entities reflects our share of (i) non-cash items such as
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(5)Allocable share of adjustments related to unconsolidated entities reflects our share of non-cash items such as (i)
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depreciation and amortization, (ii) unrealized gains and losses recorded by such unconsolidated entities, if any, and
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$(2.3) million of unrealized gains recorded by such unconsolidated entities, (ii) $1.3 million of depreciation and
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(iii) related adjustments for realized gains, if any.
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amortization, and (iii) related adjustments for realized gains, if any.
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previously recognized under GAAP. Refer to Note 2 to our consolidated financial statements for additional
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previously recognized under GAAP. Refer to Note 2 to our consolidated financial statements for further information
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information on our Agency Multifamily Lending Partnership.
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on our Agency Multifamily Lending Partnership.
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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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During thethree months ended September 30, 2025, we originated or acquired$945.1 million of loans, including our share
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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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(2)Represents our share of loans that were acquired by our Bank Loan Portfolio Joint Venture. This reflects our
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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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During thethree months ended September 30, 2025, loan fundings totaled$496.8 million and loan repayments and sales
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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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totaled$1.6 billion. During thethree months ended September 30, 2025, we generated interest income of$346.0 million
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$264.7 million, which resulted in$94.8 million of net interest income.
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and incurred interest expense of$247.1 million, which resulted in$98.9 million of net interest income.
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which is included in investments in unconsolidated entities on our consolidated balance sheets.
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unconsolidated entities on our consolidated balance sheets.
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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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September 30, 2025,98% of our loans by principal balance earned a floating rate of interest, primarily indexed to
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The remaining 2% of our loans by principal balance earned a fixed rate of interest.
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SOFR. The remaining 2% of our loans by principal balance earned a fixed rate of interest.
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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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methods, if any. As of September 30, 2025, 31% of our loans by principal balance were subject to yield maintenance
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other prepayment restrictions and 74% were open to repayment by the borrower without penalty.
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or other prepayment restrictions and 69% were open to repayment by the borrower without penalty.
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(4)Based on LTV as of the dates loans were originated or acquired by us, excluding any loans that are impaired and any
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(4)Based on LTV as of the dates loans were originated or acquired by us, excluding any loans that are impaired.
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The following table details the index rate floors for our loan portfolio as of June 30, 2025 ($ in thousands):
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The following table details the index rate floors for our loans receivable portfolio as of September 30, 2025 ($ in
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(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, Canadian Dollar, and Swiss Franc
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(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.
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(3)As of June 30, 2025, the weighted-average index rate floor of our floating-rate loans receivable principal balance
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(3)As of September 30, 2025, the weighted-average index rate floor of our floating-rate loans receivable principal
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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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balance was 1.25%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor
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The following table details the floating benchmark rates for our loan portfolio as of June 30, 2025 (loans receivable
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The following table details the floating benchmark rates for our loans receivable portfolio as of September 30, 2025 (loans
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principal balance amounts in thousands):
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receivable principal balance amounts in thousands):
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(3)Includes floating rate loans indexed to STIBOR, CORRA, BBSY, and SARON indices.
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(3)Includes floating rate loans indexed to STIBOR, CORRA, and BBSY indices.
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Geographic locations that represent less than 1% of net loan exposure are excluded from the chart.
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represent less than 1% of net loan exposure are excluded from the chart.
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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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As of September 30, 2025, 96% of our loans were performing with risk ratings of “1” through “4,” and the remaining 4%
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impaired with a risk rating of “5.” Of the performing loans,99.2%, based on net loan exposure, were in compliance with
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were impaired with a risk rating of “5.” As of September 30, 2025, all borrowers under performing loans were in
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the applicable contractual terms. We believe this demonstrates the overall strength of our loan portfolio and the
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believe this demonstrates the overall strength of our loan portfolio and the commitment and financial wherewithal of our
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commitment and financial wherewithal of our borrowers generally, which are primarily affiliated with large real estate
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borrowers generally, which are primarily affiliated with large real estate private equity funds and other strong, well-
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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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certain investments. As of September 30, 2025, we had an aggregate$505.4 million asset-specific CECL reserve related to
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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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12 of our loans receivable, with an aggregate amortized cost basis of$1.2 billion, net of cost-recovery proceeds. This
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aggregate 35% ownership interest in the joint venture, which is included in investments in unconsolidated entities on
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The following table details our loan portfolio activity ($ in thousands):
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compliance with the applicable contractual terms of each respective loan, including any required payment of interest. We
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amounts due under the terms of the loan. This CECL reserve was recorded based on our estimation of the fair value of each
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of the loan's underlying collateral as of September 30, 2025.
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underlying a loan through a foreclosure, a deed-in-lieu of foreclosure transaction, or a loan modification in which we
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receive an equity interest in and/or control over decision-making at the property. As of September 30, 2025, we had 10
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These factors included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii)
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borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under
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our share of the loss incurred by the Net Lease Joint Venture during thenine months ended September 30, 2025, driven by
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repurchase up to$150.0 million of our class A common stock under the program, as amended.
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otherwise consolidated. However, non-recoverability may also be concluded if, in our determination, it is nearly
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recovery and nonaccrual methods, if any.
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(1)Represents net income (loss) attributable to Blackstone Mortgage Trust.
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private equity funds and other strong, well-capitalized, and experienced sponsors.
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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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based on our estimation of the fair value of each of the loan's underlying collateral as of June 30, 2025. No income was
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average principal balance of our loan portfolio by$1.6 billion during thethree months ended June 30, 2025. This was
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During thethree months ended June 30, 2025, we recorded a$45.6 million increase in our CECL reserves, as compared to
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the specific credit quality factors for such loans. These factors included, among others, (i) the underlying collateral
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performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the
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quality factors for such loans. These factors included, among others, (i) the underlying collateral performance, (ii)
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discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay