BLACKSTONE MORTGAGE TRUST, INC.

1. ORGANIZATION

References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust,

Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise.

Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other

debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and

Australia. Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major

markets, and sponsored by experienced, well-capitalized real estate investment owners and operators. We finance our

investments in a variety of ways, including borrowing under our credit facilities, issuing collateralized loan obligations, or

CLOs, or single-asset securitizations, asset-specific financings, syndicating senior loan participations, and corporate

financing, depending on our view of the most prudent financing option available for each of our investments. We are

externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a

real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our

principal executive offices are located at 345 Park Avenue, 24th Floor, New York, New York 10154.

We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal

income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders

and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an

exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding

company and conduct our business primarily through our various subsidiaries.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting

principles generally accepted in the United States of America, or GAAP, for interim financial information and the

instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes

thereto, are unaudited and exclude some of the disclosures required in audited financial statements. We believe we have

made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are

presented fairly and that estimates made in preparing our consolidated financial statements are reasonable and prudent. The

operating results presented for interim periods are not necessarily indicative of the results that may be expected for any

other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should

be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for

the fiscal year ended December 31, 2024 filed with the Securities and Exchange Commission, or the SEC.

Basis of Presentation

The accompanying consolidated financial statements include, on a consolidated basis, our accounts, the accounts of our

wholly-owned subsidiaries, majority-owned subsidiaries, and variable interest entities, or VIEs, of which we are the

primary beneficiary. All intercompany balances and transactions have been eliminated in consolidation.

Principles of Consolidation

We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate

all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do

not have an interest with the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk

for the entity to finance its activities without additional subordinated financial support from other parties. The entity that

consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities

that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the

obligation to absorb losses of the VIE that could be significant to the VIE. Entities that do not qualify as VIEs are generally

considered voting interest entities, or VOEs, and are evaluated for consolidation under the voting interest model. VOEs are

consolidated when we control the entity through a majority voting interest or other means.

For consolidated entities, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is

included in non-controlling interests as a component of total equity. The non-controlling partner’s interest is generally

computed as the joint venture partner’s ownership percentage.

When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the

investment is accounted for under the equity method of accounting. Investments in unconsolidated entities for which we

have not elected the fair value option, or FVO, are initially recorded at cost and subsequently adjusted for our pro-rata

share of net income, contributions and distributions. When we elect the FVO, we record our share of the net asset value of

the entity and any related unrealized gains and losses.

We review our investments in unconsolidated entities for impairment each quarter or when there is an event or change in

circumstances that indicates a decrease in value. If there is a decrease in value due to a series of operating losses or other

factors, the investment is evaluated to determine if the loss in value is considered other than temporary. Although a current

fair value below the carrying value of the investment is an indicator of impairment, we will only recognize an impairment

if the loss in value is determined to be an other than temporary impairment. If an impairment is determined to be other than

temporary, we will record an impairment charge sufficient to reduce the investment’s carrying value to its fair value, which

would result in a new cost basis. This new cost basis will be used for future periods when recording subsequent income or

loss and cannot be written up to a higher value as a result of increases in fair value.

In 2017, we entered into a joint venture with Walker & Dunlop Inc., or Walker & Dunlop, to originate, hold, and finance

multifamily bridge loans, which we refer to as our Multifamily Joint Venture. Pursuant to the terms of the agreements

governing the joint venture, Walker & Dunlop contributed 15% of the venture’s equity capital and we contributed 85%.

We consolidate our Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests

included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned

by Walker & Dunlop. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are

allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint

Venture.

In 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in triple net lease

properties, which we refer to as our Net Lease Joint Venture. Our aggregate ownership interest in our Net Lease Joint

Venture was 75% as of September 30, 2025. We do not consolidate our Net Lease Joint Venture as we do not have a

controlling financial interest. Our investment in our Net Lease Joint Venture is accounted for under the equity method, and

is recorded ininvestment in unconsolidated entities on our consolidated balance sheets, and our pro-rata share of income

(loss) is recorded inincome (loss) from unconsolidated entities on our consolidated statements of operations.

In the second quarter of 2025, we entered into a joint venture with a Blackstone-advised investment vehicle to acquire

portfolios of performing commercial mortgage loans, which we refer to as our Bank Loan Portfolio Joint Venture. During

thenine months ended September 30, 2025, our Bank Loan Portfolio Joint Venture acquiredtwo portfolios of performing

commercial mortgage loans. Our aggregate ownership interest in our Bank Loan Portfolio Joint Venture was 35% as of

September 30, 2025. We do not consolidate our Bank Loan Portfolio Joint Venture as we do not have a controlling

financial interest. Our investment in our Bank Loan Portfolio Joint Venture is accounted for using the FVO, and is recorded

as aninvestment in unconsolidated entities on our consolidated balance sheets, and our pro-rata share of any unrealized

gains and losses is recorded inincome (loss) from unconsolidated entities on our consolidated statements of operations.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and

assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of

the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting

period. Actual results may ultimately differ materially from those estimates.

Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest

method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these

investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally

suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery

of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized

cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually

currentand performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses

are deferred and recognized as a reduction to interest income, however expenses related to loans we acquire are included in

general and administrative expenses as incurred.

The sources of revenue from our REO assets, which is included in revenue from real estate owned on our consolidated

statements of operations, and the related revenue recognition policies are as follows:

Rental income primarily consists of base rent income arising from tenant leases at our office and multifamily properties.

Base rent is recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions.

We begin to recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased

space.

Other operating income primarily consists of income from our hospitality properties and tenant reimbursement income.

Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue

is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered.

Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area

maintenance, real estate taxes, and other recoverable costs included in lease agreements.

We evaluate the collectibility of receivables related to rental revenue on an individual lease basis and exercise judgment in

assessing collectability considering the length of time a receivable has been outstanding, tenant credit-worthiness, payment

history, available information about the financial condition of the tenant, and current economic trends, among other factors.

Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue.

Cash and Cash Equivalents

Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or

less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash

equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not

expect, any losses on our cash or cash equivalents. As of both September 30, 2025 and December 31, 2024, we had no

restricted cash on our consolidated balance sheets.

Loans Receivable

We originate and purchase commercial real estate debt and related instruments generally to be held as long-term

investments at amortized cost.

Current Expected Credit Losses Reserve

The current expected credit loss, or CECL, reserve required under the Financial Accounting Standards Board, or FASB,

Accounting Standards Codification, or ASC, Topic 326 “Financial Instruments – Credit Losses,” or ASC 326, reflects our

current estimate of potential credit losses related to our loans and notes receivable included in our consolidated balance

sheets. Changes to the CECL reserves are recognized through net income on our consolidated statements of operations.

While ASC 326 does not require any particular method for determining the CECL reserves, it does specify the reserves

should be based on relevant information about past events, including historical loss experience, current portfolio and

market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than

a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of

loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of

loss, regardless of credit quality, subordinate capital, or other mitigating factors.

We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which

has been identified as an acceptable loss-rate method for estimating CECL reserves in FASB Staff Q&A Topic 326, No. 1.

The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to

each of our loans over their expected remaining term, taking into consideration expected economic conditions over the

relevant time frame. We apply the WARM method for the majority of our loan portfolio, which consists of loans that share

similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-

weighted model that considers the likelihood of default and expected loss given default for each such individual loan.

Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical

loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current

credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. To

estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market

loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued

since January 1, 1999 through August 31, 2025. Within this database, we focused our historical loss reference calculations

on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable

to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV. We believe this CMBS data,

which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset

to our portfolio.

Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan. These

future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is

recorded as a component of other liabilities on our consolidated balance sheets. This CECL reserve is estimated using the

same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will

similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our

internal risk rating of each loan as the primary credit quality indicator underlying our assessment.

The CECL reserves are measured on a collective basis wherever similar risk characteristics exist within a pool of similar

assets. We have identified the following pools and measure the reserve for credit losses using the following methods:

•U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average

remaining maturity of our loan pool, and an economic view.

•Non-U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average

remaining maturity of our loan pool, and an economic view.

•Unique Loans: a probability of default and loss given default model, assessed on an individual basis.

•Impaired Loans: impairment is indicated when it is deemed probable that we will not be able to collect all

amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires

significant judgment from management and is based on several factors including (i) the underlying collateral

performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact

the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be

impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for

collateral dependent loans. The CECL reserves are assessed on an individual basis for these loans by comparing

the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan.

These valuations require significant judgments, which include assumptions regarding capitalization rates, discount

rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan

sponsorship, actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could

ultimately differ materially from these estimates. We only expect to charge off the impairment losses in our

consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non-

recoverable. This is generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are

otherwise consolidated. However, non-recoverability may also be concluded if, in our determination, it is nearly

certain that all amounts due will not be collected.

Contractual Term and Unfunded Loan Commitments

Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments. As part of

our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine

the contractual term for purposes of computing our CECL reserves.

Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend

credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly,

as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in

estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans

receivable.

Credit Quality Indicator

Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve. We perform a

quarterly risk review of our portfolio of loans, and assign each loan a risk rating based on a variety of factors, including,

without limitation, origination LTV, debt yield, property type, geographic and local market dynamics, physical condition,

cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point

scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which

ratings are defined as follows:

1 -Very Low Risk

2 -Low Risk

3 -Medium Risk

4 -High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss.

5 -Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a

principal loss.

Estimation of Economic Conditions

In addition to the WARM method computations and probability-weighted models described above, our CECL reserves are

also adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the

commercial real estate assets securing our loans. These estimations include unemployment rates, interest rates, expectations

of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit

losses for our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we

have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader

economic conditions may have on our loan portfolio’s performance. We generally also incorporate information from other

sources, including information and opinions available to our Manager, to further inform these estimations. This process

requires significant judgments about future events that, while based on the information available to us as of the balance

sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly

from the estimates we made as of September 30, 2025.

We may assume legal title, physical possession, or control of the collateral underlying a loan through a foreclosure, a deed-

in-lieu of foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over

decision-making at the property, resulting in us consolidating the real estate assets as VIEs. These real estate acquisitions

are classified as real estate owned, or REO, on our consolidated balance sheet and are initially recognized at fair value on

the acquisition date in accordance with the ASC Topic 805, “Business Combinations,” or ASC 805.

Upon acquisition of REO assets, we assess the fair value of acquired tangible and intangible assets, which may include

land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other identified

intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and assumed

liabilities. We assess and consider fair value based on estimated cash flow projections that utilize discount and/or

capitalization rates that we deem appropriate, as well as other available market information. Estimates of future cash flows

are based on a number of factors including the historical operating results, known and anticipated trends, and market and

economic conditions. We capitalize acquisition-related costs associated with asset acquisitions.

Real estate assets held for investment, except for land, are depreciated using the straight-line method over the assets’

estimated useful lives of up to 40 years for buildings and 10 years for tenant improvements. Renovations and/or

replacements that improve or extend the life of the asset are capitalized and depreciated over their estimated useful lives.

Lease intangibles are amortized over the remaining term of applicable leases on a straight-line basis. The cost of ordinary

repairs and maintenance are expensed as incurred.

Real estate assets held for investment are assessed for impairment on a quarterly basis. If the depreciated cost basis of the

asset exceeds the undiscounted cash flows over the remaining holding period, the asset is considered forimpairment. The

impairment loss is recognized when thecarrying value of the real estate assets exceed their fair value. The evaluation of

anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental

rates, capital requirements and anticipated holding periods that could differ materially from actual results.

Real estate assets are classified as held for sale in the period when they meet the criteria under ASC Topic 360 “Property,

Plant, and Equipment.” Once a real estate asset is classified as held for sale, depreciation is suspended and the asset is

reported at the lower of its carrying value or fair value less cost to sell. If circumstances arise and we decide not to sell a

real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon

reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for

sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for

investment, and (ii) its estimated fair value at the time of reclassification.

As of September 30, 2025, we had 10 REO assets that were all classified as held for investment.

Agency Multifamily Lending Partnership

In the second quarter of 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a

subsidiary of M&T Bank, that allows our borrowers to access multifamily agency financing through MTRCC’s Fannie

Mae DUS and Freddie Mac Optigo lending platforms, or the Agency Multifamily Lending Partnership. We will receive a

portion of origination, servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie

Mae and Freddie Mac programs. Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer

to MTRCC for origination under the Fannie Mae program.

For loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs, we recognize our

allocable portion of origination, servicing, and other fees in other income when we have satisfied our performance

obligations in accordance with the “Revenue from Contracts with Customers” Topic of the FASB, or ASC 606. Our

performance obligations are generally satisfied when the loan is referred by us to MTRCC and subsequently originated and

sold under the Fannie Mae and Freddie Mac programs. A portion of the fees recognized, such as servicing fees, are variable

and will be reevaluated for collectability on a recurring basis.

Loss-sharing Obligation

Pursuant to our agreement with MTRCC, we are subject to a loss-sharing obligation with respect to MTRCC’s obligation

to partially guarantee the performance of loans that they originate and sell under the Fannie Mae program. This loss-

sharing agreement requires us to fund a fixed amount of cash into a segregated account based on the amount MTRCC is

required to fund under the Fannie Mae program, with respect to loans we referred to MTRCC.

In addition, we will recognize a liability for these loss-sharing obligations. This liability will be initially recognized at fair

value with a corresponding expense at inception, and it will subsequently be amortized on a straight-line basis over the life

of the loss-sharing obligation. This liability is included within other liabilities in our consolidated balance sheets. As of

both September 30, 2025 and December 31, 2024, our maximum loss-sharing obligation associated with the loans referred

by us to MTRCC under the Fannie Mae program was$5.5 million, and we have recordeda related liability of$32,000.

There have beenno losses incurred as a result of the loss-sharing obligations.

Derivative Financial Instruments

We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets

at fair value.

On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign

operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received

or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair

value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all

derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and

designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the

hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the

effectiveness of its hedged transaction.

On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected

to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined

that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the

changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed

using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from

the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the

contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in

accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that

qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated

financial statements. Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and

into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the

same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap

settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated.

To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its

fair value are included in net income concurrently.

Proceeds or payments from periodic settlements of derivative instruments are classified on our consolidated statement of

cash flows in the same section as the underlying hedged item.

Secured Debt and Asset-Specific Debt

We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings

under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets. Interest

income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported

separately on our consolidated statements of operations.

Loan Participations Sold

In certain instances, we have executed a syndication of a non-recourse loan interest to a third party. Depending on the

particular structure of the syndication, the loan interest may remain on our GAAP balance sheet or, in other cases, the sale

will be recognized and the loan interest will no longer be included in our consolidated financial statements. When these

sales are not recognized under GAAP we reflect the transaction by recording a loan participation sold liability on our

consolidated balance sheet, however this gross presentation does not impact stockholders’ equity or net income. When the

sales are recognized, our balance sheet only includes our remaining loan interest, and excludes the interest in the loan that

we sold.

Term Loans

We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or

transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest

expense.

Senior Secured Notes

We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount

or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-

cash interest expense.

Convertible Notes

Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as

debt. Additionally, shares issuable under our convertible notes are included in diluted earnings per share in our

consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent.

Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the

convertible notes as additional non-cash interest expense.

Deferred Financing Costs

The deferred financing costs that are included as a reduction in the net book value of the related liability on our

consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as

interest expense using the effective interest method over the life of the related obligations.

Underwriting Commissions and Offering Costs

Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a

reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common

stock offering are expensed when incurred.

Fair Value Measurements

The “Fair Value Measurements and Disclosures” Topic of the FASB, or ASC 820, defines fair value, establishes a

framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP.

Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an

asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.

ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in

measuring financial instruments. Market price observability is affected by a number of factors, including the type of

financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the

existence and transparency of transactions between market participants. Financial instruments with readily available quoted

prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment

used in measuring fair value.

Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs

used in the determination, as follows:

•Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical

financial instruments as of the reporting date.

•Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active

or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other

observable inputs, such as interest rates, yield curves, credit risks, and default rates.

•Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if

any, market activity for the financial instrument. These inputs require significant judgment or estimation by

management of third parties when determining fair value and generally represent anything that does not meet the

criteria of Levels 1 and 2.

Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a

nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further

in Note 19. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on

assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from

third parties. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our

estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These

valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing,

creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions

of other lenders, and other factors.

We have elected the FVO for one of our investments in an unconsolidated entity, our Bank Loan Portfolio Joint Venture,

and therefore report this investment at fair value. Given the fair value of this investment is not readily determinable, the net

asset value of the entity is used as a practical expedient.

receivable with an aggregate amortized cost basis of$1.2 billion, net of cost-recovery proceeds. The CECL reserve was

recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of September 30, 2025.

These loans receivable are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs,

and are classified as Level 3 assets in the fair value hierarchy. We estimated the fair value of the collateral underlying the

loans receivable by considering a variety of inputs including property performance, market data, and comparable sales, as

applicable. The significant unobservable inputs employed include the exit capitalization rate assumption used to forecast

the future sale price of the underlying real estate collateral, which ranged from 6.00% to 8.00%, and the unlevered discount

rate assumption, which ranged from 7.00% to 15.00%.

During thenine months ended September 30, 2025, we acquired legal title or otherwise consolidated three REO assets

through deed-in-lieu of foreclosure transactions or loan modifications that resulted in us consolidating the collateral assets.

At the time of each acquisition, we determined the fair value of each real estate asset based on a variety of inputs including,

but not limited to, estimated cash flow projections, leasing assumptions, required capital expenditures, market data, and

comparable sales. The REO assets were measured at fair value on a nonrecurring basis using significant unobservable

inputs and are classified as Level 3 assets in the fair value hierarchy. The significant unobservable inputs employed include

(i) the exit capitalization rate assumption used to forecast the future sale price of the assets, which ranged from 6.00% to

8.55%, and (ii) the unlevered discount rate assumptions, which ranged from 7.75% to 10.55%. Refer to Notes 4 and 19 for

further information.

We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise

reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those

instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which

it is practicable to estimate that value:

•Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.

•Loans receivable, net: The fair values of these loans were estimated using a discounted cash flow methodology,

taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of

major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other

lenders, and other factors.

•Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated

using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs

comprising foreign currency rates and credit spreads.

•Secured debt, net: The fair value of these instruments was estimated based on the rate at which a similar credit

facility would currently be priced.

•Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing

service providers. In determining the value of a particular investment, pricing service providers may use broker-

dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the

reported price.

•Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar

agreement would currently be priced.

•Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related

loan receivable asset.

•Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service

providers. In determining the value of a particular investment, pricing service providers may use broker-dealer

quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported

price.

•Senior secured notes, net: The fair value of these instruments was estimated by utilizing third-party pricing service

providers. In determining the value of a particular investment, pricing service providers may use broker-dealer

quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported

price.

•Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained

using quoted market prices.

Income Taxes

Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income.

We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally

do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were

to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and

penalties. Refer to Note 17 for further information.

Stock-Based Compensation

Our stock-based compensation consists of awards issued to our Manager, certain individuals employed by an affiliate of

our Manager, and certain members of our board of directors that vest over the life of the awards, as well as deferred stock

units issued to certain members of our board of directors. Stock-based compensation expense is recognized for these

awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A

common stock. Refer to Note 18 for further information.

Earnings per Share

Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net

earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units,

divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common

stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a

participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these

restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or

losses.

Diluted earnings per share, or Diluted EPS, is determined using the if-converted method, and is based on (i) the net

earnings, adjusted for interest expense incurred on our convertible notes during the relevant period, net of incentive fees,

allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii)

the weighted-average number of shares of our class A common stock, including restricted class A common stock, deferred

stock units, and shares of class A common stock issuable under our convertible notes. Refer to Note 15 for further

discussion of earnings per share.

Foreign Currency

In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign

exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of

operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar

denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and

income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative

translation adjustments arising from the translation of non-U.S. dollar denominated subsidiaries are recorded in other

comprehensive income (loss).

Recent Accounting Pronouncements

In July 2025, the FASB issued Accounting Standards Update, or ASU, 2025-05, which amends the guidance in ASC 326,

Financial Instruments—Credit Losses. This update provides a practical expedient related to the estimation of expected

credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under

ASC 606. The amendment notes that in developing reasonable and supportable forecasts as part of estimating expected

credit losses, all entities may elect a practical expedient that assumes that current conditions as of the balance sheet date do

not change for the remaining life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15,

2025, including interim periods within those annual periods, and early adoption is permitted. We have not early adopted

ASU 2025-05 and do not expect the adoption of ASU 2025-05 to have a material impact on our consolidated financial

statements. We recognize revenue under ASC 606 pursuant to our Agency Multifamily Lending Partnership and income

from our hospitality REO assets.

In May 2025, the FASB issued ASU 2025-03, which amends the guidance in ASC 805, Business Combinations. This

update clarifies the determination of the accounting acquirer in business combinations that are primarily effected through

the exchange of equity interests and involve the acquisition of a VIE. Specifically, entities are now required to consider the

factors outlined in ASC 805-10-55-12 through 55-15 when determining the accounting acquirer, rather than defaulting to

the primary beneficiary of the VIE as the accounting acquirer. ASU 2025-03 is effective for annual periods beginning after

December 15, 2026, including interim periods within those annual periods, and early adoption is permitted. We have not

early adopted ASU 2025-03 and do not expect the adoption of ASU 2025-03 to have a material impact on our consolidated

financial statements.

In November 2024, the FASB issued ASU 2024-04 “Debt with Conversion and Other Options (Subtopic 470-20): Induced

Conversions of Convertible Debt Instruments,” or ASU 2024-04. ASU 2024-04 clarifies the accounting treatment for

settlement of a convertible debt instrument as an induced conversion. ASU 2024-04 is effective on a prospective basis,

with the option for retrospective application, for fiscal years beginning after December 15, 2025. We have not early

adopted ASU 2024-04 and do not expect the adoption of ASU 2024-04 to have a material impact on our consolidated

financial statements.

In November 2024, the FASB issued ASU 2024-03 “Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses,” or ASU 2024-03. ASU 2024-03 requires disclosures in the notes to the

financial statements on specified information about certain costs and expenses for each interim and annual reporting period.

ASU 2024-03 is effective on either a prospective basis, with the option for retrospective application, for annual periods

beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, and

early adoption is permitted. We have not early adopted ASU 2024-03 and do not expect the adoption of ASU 2024-03 to

have a material impact on our consolidated financial statements.

In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax

Disclosures,” or ASU 2023-09. ASU 2023-09 requires additional disaggregated disclosures on an entity’s effective tax rate

reconciliation and additional details on income taxes paid. ASU 2023-09 is effective on a prospective basis, with the option

for retrospective application, for annual periods beginning after December 15, 2024 and early adoption is permitted. We

have not early adopted ASU 2023-09 and do not expect the adoption of ASU 2023-09 to have a material impact on our

consolidated financial statements.

3. LOANS RECEIVABLE, NET

The following table details overall statistics for our loans receivable portfolio ($ in thousands):

(1)Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real

estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will

generally be funded over the term of each loan, subject in certain cases to an expiration date.

(2)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark

rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices, as applicable to each loan. As of

September 30, 2025,98% of our loans by principal balance earned a floating rate of interest, primarily indexed to

SOFR. The remaining 2% of our loans by principal balance earned a fixed rate of interest. As of December 31, 2024,

substantially all of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. In

addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan

origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the

cost-recovery and nonaccrual methods, if any.

(3)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid

prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of

September 30, 2025,31% of our loans by principal balance were subject to yield maintenance or other prepayment

restrictions and 69% were open to repayment by the borrower without penalty. As of December 31, 2024,10% of

our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 90% were

open to repayment by the borrower without penalty.

The following table details the index rate floors for our loans receivable portfolio as of September 30, 2025 ($ in

(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.

(2)Includes all impaired loans.

(3)As of September 30, 2025, the weighted-average index rate floor of our floating-rate loans receivable principal

balance was 1.25%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor

was 1.90%.

Activity relating to our loans receivable portfolio was as follows ($ in thousands):

(1)Other items primarily consist ofpurchase and sale discounts or premiums, exit fees, deferred origination expenses,

and cost-recovery proceeds.

(2)This amount relates to intangible and other assets recorded in connection with loans that were transferred to REO,

net of liabilities recorded upon acquisition, ifany, and proceeds from loan repayments that are held in escrow, all of

which are included within other assets in our consolidated balance sheets. See Note 6 for further information.

The tables below detail the property type and geographic distribution of the properties securing the loans in our portfolio

($ in thousands):

structurally non-recourse and term-matched to the corresponding collateral loans.

(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31,

2024, which is our principal balance net of (i)$1.2 billion of asset-specific debt, (ii)$106.7 million of cost-recovery

proceeds, (iii) our total loans receivable CECL reserve of$733.9 million, and (iv)$100.1 million of junior loan

interests that we have sold, but that remain included in our consolidated financial statements. See Note 2 for further

discussion of loan participations sold. Our asset-specific debt and loan participations sold are structurally non-

recourse and term-matched to the corresponding collateral loans.

Loan Risk Ratings

As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan

portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors. Factors

considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral

performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings

are defined in Note 2.

The following table allocates the net book value and net loan exposure balances based on our internal risk ratings ($ in

recovery proceeds, and (iii) our total loans receivable CECL reserve of$695.7 million. Our net loan exposure as of

December 31, 2024 is our principal balance net of (i)$1.2 billion of asset-specific debt, (ii)$106.7 million of cost-

recovery proceeds, (iii) our total loans receivable CECL reserve of$733.9 million, and (iv)$100.1 million of junior

loan interests that we have sold, but that remain included in our consolidated financial statements. Our asset-specific

debt and loan participations sold are structurally non-recourse and term-matched to the corresponding collateral

loans.

Our loan portfolio had a weighted-average risk rating of 3.0 as of both September 30, 2025 and December 31, 2024.

Current Expected Credit Loss Reserve

The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included

in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserves. The following table

presents the activity in our loans receivable CECL reserve by investment pool for the three andnine months ended

September 30, 2025 and 2024 ($ in thousands):

(1)Includesone U.S. dollar-denominated loan that is located in Bermuda.

During thethree months ended September 30, 2025, we recorded a netdecrease of$45.1 million in the CECL reserves

against our loans receivable portfolio, primarily driven by a$53.4 million decrease in our asset-specific CECL reserves,

including charge-offs of our CECL reserves of$42.1 million. This was offset by an$8.2 million increase in our general

CECL reserves, bringing our total loans receivable CECL reserve to$695.7 million as of September 30, 2025.Theincrease

in our general CECL reserves was primarily as a result ofan increase in the historical loss rate used in reserve calculations

as a result of additional CECL charge-offs.

The charge-offs primarily related totwo previously impaired loans secured by a hospitality asset in New York, NY and an

office asset in Atlanta, GA, that were resolved and transferred to REO during thethree months ended September 30, 2025

pursuant to loan modifications that resulted in us consolidating the collateral assets. Refer to Notes 4 and 20 for further

information.

receivable, with a total amortized cost basis of$1.2 billion, net of cost-recovery proceeds, and a concentration in the office

sector with$382.2 million of reserves, generally driven by reduced tenant and capital markets demand in the office sector

in recent years. Impairments are each determined individually as a result of changes in the specific credit quality factors for

such loans. These factors included, among others, (i) the underlying collateral performance, (ii) discussions with the

borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual

amounts due under the terms of the loan. This CECL reserve was recorded based on our estimation of the fair value of each

loan’s underlying collateral as of September 30, 2025.

No income was recorded on our impaired loans subsequent to determining that they were impaired. During the three

months ended September 30, 2025, we received an aggregate$9.7 million of cash proceeds from such loans that were

applied as a reduction to the amortized cost basis of each respective loan.

As of September 30, 2025, all borrowers under performing loans were in compliance with the applicable contractual terms

of each respective loan, including any required payment of interest. Refer to Note 2 for further discussion of our policies on

revenue recognition and our CECL reserves.

Our primary credit quality indicator is our risk ratings, which are further discussed above. The following tables present the

net book value of our loan portfolio as of September 30, 2025 and December 31, 2024, respectively, by year of origination,

investment pool, and risk rating ($ in thousands):

(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan

modifications.

(2)Represents charge-offs by year of origination during thenine months ended September 30, 2025.

(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan

modifications.

(2)Represents charge-offs by year of origination during theyear ended December 31, 2024.

Loan Modifications Pursuant to ASC 326

During thetwelve months ended September 30, 2025, we entered into five loan modifications that require disclosure

pursuant to ASC 326. Four of these loans were collateralized by office assets andone was collateralized by a mixed-use

asset.

Loans with a risk rating of “3” and “4” are included in the determination of our general CECL reserve and loans with a risk

rating of “5” have an asset-specific CECL reserve. Loan modifications that allow the option to pay interest in-kind increase

our potential economics and the size of our secured claim, as interest is capitalized and added to the outstanding principal

balance for applicable loans. As of September 30, 2025, no income was recorded on our loans subsequent to determining

that they were impaired and risk rated “5.”

Two of the loan modifications included term extensions combined with other-than-insignificant payment delays. The first

loan modification included a term extension offive years, the borrower repaid$6.0 million of principal, and the loan was

bifurcated into a separate senior loan and subordinate loan. We are accruing interest on the senior loan, which is paying

interest current, and deferring interest on the subordinate loan that is paying interest in-kind. The second loan modification

had a term extension of 3.8 years, the loan was bifurcated into a separate senior loan and subordinate loan, and the

borrower paid a$1.7 million fee upon closing of the modification. We are accruing interest on the senior loan, which is

paying interest current, and deferring interest on the subordinate loan that is paying interest in-kind. As of September 30,

2025, the aggregate amortized cost basis of these loans was$367.3 million, or 2.0% of our aggregate loans receivable

portfolio, with an aggregate$4.7 million of unfunded commitments. These loans were in compliance with their modified

contractual terms as of September 30, 2025.

The other three loan modifications included term extensions combined with other-than-insignificant payment delays and

interest rate reductions. The first loan modification included a term extension of 4.8 years, the interest rate decreased by

0.10%, and the loan was bifurcated into a separate senior loan and subordinate loan. The senior loan is paying interest

partially current, and partially in-kind, while the subordinate loan is paying interest in-kind. We are accruing interest on the

portion of the senior loan that is paying current and a portion that is paid in-kind, and deferring interest income recognition

on the remaining portion, including the entire subordinate loan. The second loan modification included a term extension of

one year, the interest rate on the senior loan decreased by 2.43%, the borrower repaid$25.0 million upon closing of the

modification, and the loan was bifurcated into a separate senior loan and subordinate loan. The senior loan is paying

interest partially current, and partially in-kind, while the subordinate loan is paying interest in-kind. We are accruing all of

the interest on the senior loan that is paying partially current and partially in-kind, and deferring interest on the subordinate

loan that is paying interest in-kind. The third loan modification included a term extension of 4.3 years, the interest rate

decreased by 3.56%, and the loan was bifurcated into a separate senior loan and subordinate loan. We are accruing all of

the interest on the senior loan that is paying current, and deferring interest income on the subordinate loan, which is paid-

in-kind. As of September 30, 2025, the aggregate amortized cost basis of these loans was$506.5 million, or 2.8% of our

aggregate loans receivable portfolio, with an aggregate$32.7 million of unfunded commitments. These loans were in

compliance with their modified contractual terms as of September 30, 2025.

Allfive of these loans had a risk rating of “5” at the time of modification. In aggregate, these modifications resulted in the

bifurcation of allfive loans into separate senior and subordinate loans, orten loans in aggregate. As of September 30, 2025,

of thefive newly bifurcated senior loans, two loans had a risk rating of “4,”one loan had a risk rating of “3,” andtwo loans

had a risk rating of “2.” Thefive newly bifurcated subordinate loans all had a risk rating of “5.”

Multifamily Joint Venture

As discussed in Note 2, we entered into our Multifamily Joint Venture in April 2017. As of both September 30, 2025 and

December 31, 2024, our Multifamily Joint Venture held a$43.3 million loan, which is included in the loan disclosures

above. As of September 30, 2025 and December 31, 2024, our Multifamily Joint Venture also held an REO asset with a

carrying value of$32.1 million and$32.4 million, respectively, which is included in the REO disclosures in Note 4. Refer

to Note 2 for further discussion of our Multifamily Joint Venture.

4. REAL ESTATE OWNED, NET

As of September 30, 2025 and December 31, 2024, we had 10 andseven REO assets, respectively. During thenine months

ended September 30, 2025, we acquired three REO assets through deed-in-lieu of foreclosure transactions or loan

modifications that resulted in us consolidating the collateral assets, for a total acquisition price of$406.3 million. We

allocated$221.0 million to land and land improvements,$137.1 million to building and building improvements,$49.2

million to acquired intangible assets, and$(1.0) million to other components of the purchase price. In aggregate, we

charged off$83.9 million of CECL reserves relating to the loans that had previously been secured by these assets, as the

loans’ aggregate carrying value of$490.2 million at the time of the REO acquisitions exceeded the acquisition date fair

value noted above. See Note 2 for further discussion of REO assets.

The acquisition ofthree REO assets during thenine months ended September 30, 2025 were accounted for as asset

acquisitions under ASC 805, and we recognized these properties as REO assets held for investment. The following table

presents the REO assets that were acquired during thenine months ended September 30, 2025 ($ in thousands):

The following table presents the REO assets and liabilities included in our consolidated balance sheets ($ in thousands):

(1)Included within other assets on our consolidated balance sheets. Refer to Note 6 for further information.

(2)Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for further information.

Revenue and expenses from real estate owned consisted of the following ($ in thousands):

The following table presents the undiscounted future minimum rents we expect to receive for our office properties as of

September 30, 2025. Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not

included ($ in thousands):

The following table presents the amortization of lease intangibles for each of the succeeding fiscal years ($ in thousands):

5. INVESTMENTS IN UNCONSOLIDATED ENTITIES

As of September 30, 2025, we hold certain investments in unconsolidated entities that are accounted for under the equity

method of accounting or the FVO, as our ownership interest in each entity does not meet the requirements for

consolidation. Refer to Note 2 for further details.

The following tables detail our investments in unconsolidated entities ($ in thousands):

(1)The number of assets represents the number of real estate properties held.

(2)The number of assets represents the number of commercial mortgage loans.

(3)Represents our aggregate ownership interest in our Bank Loan Portfolio Joint Venture, which owns an initial

portfolio of commercial mortgage loans acquired during the three months ended June 30, 2025, in which we hold a

29% interest, and an additional portfolio acquired during the three months ended September 30, 2025, in which we

hold a 50% interest.

The following tables detail the activity related to our investments in unconsolidated entities during the three andnine

months ended September 30, 2025 ($ in thousands):

(1)Includes our share of non-cash items such as (i) depreciation and amortization, and (ii) unrealized gains recorded by

unconsolidated entities.

There wasno income or loss from unconsolidated entities for the three andnine months ended September 30, 2024.

During thenine months ended September 30, 2025, our Net Lease Joint Venture and Bank Loan Portfolio Joint Venture

each entered into derivative agreements where we would be required to make payment for periodic or final settlement of

derivative contracts if either our Net Lease Joint Venture or Bank Loan Portfolio Joint Venture, as applicable, is unable to

fulfill its respective obligations.

6. OTHER ASSETS AND LIABILITIES

Other Assets

The following table details the components of our other assets ($ in thousands):

(1)Primarily represents loan principal repayments held by our third-party loan servicers as of the balance sheet date that

were remitted to us during the subsequent remittance cycle.

(2)Includes$105.2 million and$95.5 million as of September 30, 2025 and December 31, 2024, respectively, of cash

collateral held by our CLOs that was subsequently remitted by the trustee to repay a portion of the outstanding

senior CLO securities, or that was subsequently reinvested by purchasing additional collateral into our CLOs.

Other Liabilities

The following table details the components of our other liabilities ($ in thousands):

(1)Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties or

CLO trustees during the subsequent remittance cycle.

(2)Represents the CECL reserve related to our unfunded loan commitments. See Note 2 for further discussion of the

CECL reserves.

Current Expected Credit Loss Reserves for Unfunded Loan Commitments

As of September 30, 2025, we had aggregate unfunded commitments of$1.5 billion related to 57 loans receivable. The

expected credit losses over the contractual period of our loans are impacted by our obligations to extend further credit

through our unfunded loan commitments. See Note 2 for further discussion of the CECL reserves related to our unfunded

loan commitments, and Note 22 for further discussion of our unfunded loan commitments. During thethree and nine

months ended September 30, 2025, we recorded increases in the CECL reserves related to our unfunded loan commitments

of$2.0 million and$3.3 million, respectively, bringing our total unfunded loan commitments CECL reserve to

$13.7 million as of September 30, 2025. During thethree and nine months ended September 30, 2024, we recorded

decreases in the CECL reserves related to our unfunded loan commitments of$1.6 million and$7.1 million, respectively,

bringing our total unfunded loan commitments CECL reserve to$8.3 million as of September 30, 2024.

7. SECURED DEBT, NET

Our secured debt represents borrowings under our secured credit facilities. During thenine months ended September 30,

2025, we closed$2.2 billion of new borrowings against$2.9 billion of collateral assets.

The following table details our secured debt ($ in thousands):

(1)Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred

and recognized as a component of interest expense over the life of each related facility.

Secured Credit Facilities

Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with

sufficient flexibility to accommodate our investment and asset management strategy. The facilities are uniformly structured

to provide currency, index, and term-matched financing without capital markets based mark-to-market provisions. Our

credit facilities are diversified across 13 counterparties, primarily consisting of top global financial institutions to minimize

our counterparty risk exposure.

The following table details our secured credit facilities as of September 30, 2025 ($ in thousands):

(1)Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of

facility lenders.

(2)Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted-

average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all

extension options are exercised by the borrower. In limited instances, the maturity date of the respective secured

credit facility is used.

(3)Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets.

(4)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid

prior to such date.

(5)Includes Australian Dollar, Canadian Dollar, and Swedish Krona currencies.

The availability of funding under our secured credit facilities is based on the amount of approved collateral, which

collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a

mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the

limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each

facility, and therefore vary within and among the facilities.

The following tables detail the spread of our secured credit facilities as of September 30, 2025 and December 31, 2024 ($

(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include

SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable.

(2)Represents the amount of new borrowings we closed during thenine months ended September 30, 2025 andyear

ended December 31, 2024, respectively.

(3)In addition to spread, the cost includes the associated deferred fees and expenses related to the respective

borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension

fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans

(4)Represents the weighted-average all-in cost as of September 30, 2025 and December 31, 2024, respectively, and is

not necessarily indicative of the spread applicable to recent or future borrowings.

(5)Represents the principal balance of the collateral loan assets and the book value of the collateral REO assets.

(6)Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.

Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral

in our discretion within certain maximum/minimum amounts and frequency limitations. As of September 30, 2025, there

was an aggregate$844.1 million available to be drawn at our discretion under our credit facilities.

Financial Covenants

As of September 30, 2025, we are subject to the following financial covenants related to our secured debt and secured debt

of our unconsolidated entities: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to

fixed charges, as defined in the agreements, shall be not less than 1.3 to 1.0; (ii) our tangible net worth, as defined in the

agreements, shall not be less than$3.6 billion as of each measurement date plus 75% to 85% of the net cash proceeds of

future equity issuances subsequent to September 30, 2025; (iii) cash liquidity shall not be less than the greater of (x)$10.0

million or (y) no more than 5% of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33% of our

total assets. As of September 30, 2025 and December 31, 2024, we were in compliance with these covenants.

During 2024, the financial covenant under each applicable secured debt agreement related to the ratio of our EBITDA to

fixed charges, as noted above, was amended so that the ratio shall be not less than 1.25 to 1.0 with respect to each of the

four fiscal quarters beginning with thequarter ended September 30, 2024, and shall be not less than 1.3 to 1.0 thereafter.

8. SECURITIZED DEBT OBLIGATIONS, NET

We have financed certain pools of our loans through CLOs. The CLOs are consolidated in our financial statements and

have issued securitized debt obligations that are non-recourse to us. Refer to Note 20 for further discussion of our CLOs.

The following tables detail our securitized debt obligations and the underlying collateral assets that are financed by our

CLOs ($ in thousands):

extension options are exercised by the borrower, and excludes REO assets. Repayments of securitized debt

obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations represents

the rated final distribution date of the securitizations.

(5)During thethree and nine months ended September 30, 2025, we recorded$40.0 million and$107.8 million,

accounted for under the cost-recovery and nonaccrual methods, if any.

extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the

related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of

the securitizations.

(5)During thethree and nine months ended September 30, 2024, we recorded$40.6 million and$123.9 million,

9. ASSET-SPECIFIC DEBT, NET

The following table details our asset-specific debt ($ in thousands):

(2)The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates,

which include SOFR and CORRA, as applicable. These floating rate loans and related liabilities are currency and

index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost

includes the amortization of deferred origination fees and financing costs.

(3)The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all

extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case

to the corresponding collateral loans.

10. LOAN PARTICIPATIONS SOLD, NET

The sale of a non-recourse interest in a loan through a participation agreement generally does not qualify for sale

accounting under GAAP. For such transactions, we therefore present the whole loan as an asset and the loan participation

sold as a liability on our consolidated balance sheet until the loan is repaid. We generally have no obligation to pay

principal and interest under these liabilities, and the gross presentation of loan participations sold does not impact our

stockholders’ equity or net income.

We did not have any loan participations sold as of September 30, 2025. The following table details our loan participations

sold as of December 31, 2024 ($ in thousands):

(2)The weighted-average all-in yield and cost are expressed over the relevant floating benchmark rates, which include

SOFR and SONIA, as applicable. This non-debt participation sold structure is inherently matched in terms of

currency and interest rate. In addition to cash coupon, yield/cost includes the amortization of deferred fees and

financing costs.

(3)The term is determined based on the maximum maturity of the loan, assuming all extension options are exercised by

the borrower. Our loan participations sold are inherently non-recourse and term-matched to the corresponding loan.

(4)During thethree and nine months ended September 30, 2025, we recorded$1.6 million and$6.9 million,

respectively, of interest expense related to our loan participations sold. During theyear ended December 31, 2024,

we recorded $22.6 million of interest expense related to our loan participations sold.

11. TERM LOANS, NET

During thenine months ended September 30, 2025, we borrowed an additional$1.0 billion under the B-6 Term Loan and

$453.1 million under the B-7 Term Loan. The B-6 Term Loan bears interest at SOFR plus 3.00% and matures in December

2030. The proceeds from the B-6 Term Loan were used to repay$400.0 million of the outstanding B-4 Term Loan and all

$648.4 million in principal outstanding under the B-5 Term Loan. The B-7 Term Loan bears interest at SOFR plus 2.50%

and matures in May 2029. The proceeds from the B-7 Term Loan were used, among other things, to repay all

$403.1 million in principal outstanding under the B-4 Term Loan.

The following table details the net book value of each of our senior term loan facilities, or Term Loans, on our consolidated

(1)The B-6 Term Loan and the B-7 Term Loan borrowings are subject to a benchmark interest rate floor of 0.50%. The

Term Loans are indexed to one-month SOFR.

(2)Includes issue discount and transaction expenses that are amortized through interest expense over the life of the

applicable Term Loans.

The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the aggregate initial principal

balance due in quarterly installments. There wasno repurchase activity or gain on debt extinguishment during thenine

months ended September 30, 2025. During thethree and nine months ended September 30, 2024, we repurchased an

aggregate principal amount of$2.3 million of the B-1 Term Loan at a weighted-average price of 99% of par. This resulted

in a gain on extinguishment of debt of$25,000 during thethree and nine months ended September 30, 2024.

The following table details our interest expense related to the Term Loans ($ in thousands):

The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets. As of

September 30, 2025 and December 31, 2024, we were in compliance with this covenant. Refer to Note 2 for further

discussion of our accounting policies for the Term Loans.

12. SENIOR SECURED NOTES, NET

The following table details the net book value of our senior secured notes, or Senior Secured Notes, on our consolidated

(1)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.

(2)Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts

our fixed rate exposure to a SOFR +3.95% floating rate exposure.

(3)Represents the fair value of an interest rate swap that we entered into to convert the fixed rate exposure of the

December 2024 Senior Secured Notes into floating rate. Refer to Note 14 for further discussion.

The following table details our interest expense related to the Senior Secured Notes ($ in thousands):

There wasno repurchase activity or gain on debt extinguishment during thenine months ended September 30, 2025.

During thethree and nine months ended September 30, 2024, we repurchased an aggregate principal amount of

$4.6 million and$30.8 million, respectively, of the October 2021 Senior Secured Notes at a weighted-average price of 92%

and 88% of par, respectively. This resulted in a gain on extinguishment of debt of$330,000 and$3.3 million during the

three and nine months ended September 30, 2024.

The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33% of our total assets.

As of September 30, 2025 and December 31, 2024, we were in compliance with this covenant. Under certain

circumstances, we may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we

would also be required to maintain a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater.

This covenant is not currently in effect as the collateral securing our Senior Secured Notes has not been released.

13. CONVERTIBLE NOTES, NET

The following table details the net book value of our convertible senior notes, or Convertible Notes, on our consolidated

(1)Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the

effective interest method.

(2)Represents the price of class A common stock per share based on a conversion rate of 27.5702 for the Convertible

Notes. The conversion rate represents the number of shares of class A common stock issuable per$1,000 principal

amount of Convertible Notes. The cumulative dividend threshold hasnot been exceeded as of September 30, 2025.

Other than as provided by the optional redemption provisions with respect to our Convertible Notes, we may not redeem

the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our

class A common stock, only under specific circumstances, prior to the close of business on December 14, 2026 at the

applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option

of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported

sale price of our class A common stock of$18.41 on September 30, 2025, the last trading day in thenine months ended

September 30, 2025, was less than the per share conversion price of the Convertible Notes.

There was no repurchase activity during thenine months ended September 30, 2025. During thethree and nine months

ended September 30, 2024, we repurchased an aggregate principal amount of$33.8 million of the Convertible Notes at a

weighted-average price of 93% of par. This resulted in a gain on extinguishment of debt of$2.0 million during thethree

and nine months ended September 30, 2024, respectively.

The following table details our interest expense relatedto the Convertible Notes ($ in thousands):

Accrued interest payable for the Convertible Notes was$649,000 and$4.3 million as of September 30, 2025 and

December 31, 2024, respectively. Refer to Note 2 for further discussion of our accounting policies for the Convertible

Notes.

14. DERIVATIVE FINANCIAL INSTRUMENTS

The objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our

investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair

value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not

designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other

identified risks. Refer to Note 2 for further discussion of the accounting for designated and non-designated hedges.

The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these

contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial

instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and

our affiliates also have other financial relationships.

Net Investment Hedges of Foreign Currency Risk

Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates.

These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S.

dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash

flows in terms of the U.S. dollar.

Designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were designated as net investment hedges of

foreign currency risk (notional amounts in thousands):

Non-designated Hedges of Foreign Currency Risk

The following table details our outstanding foreign exchange derivatives that were non-designated hedges of foreign

currency risk (notional amounts in thousands):

Fair Value Hedges of Interest Rate Risk

Certain of our corporate financings expose us to fluctuations in the fair value of our outstanding fixed rate debt. We use

derivative financial instruments, which include interest rate swaps, to hedge interest rate risk associated with changes in the

fair value of our fixed rate debt. The changes in the value of the interest rate swap is recognized in earnings and offset the

corresponding changes in the fair value of the debt.

Designated Hedges of Interest Rate Risk

The following tables detail our outstanding interest rate derivatives that were designated as fair value hedges of interest rate

risk (notional amount in thousands):

The following tables detail the carrying amount and cumulative basis adjustments on hedged items designated as fair value

hedges ($ in thousands):

Financial Statement Impact of Hedges of Foreign Currency and Interest Rate Risks

The following table presents the effect of our derivative financial instruments on our consolidated statements of operations

($ in thousands):

(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate

differentials between the applicable base rate for our foreign currency investments and prevailing U.S. interest rates.

These forward contracts effectively convert the foreign currency rate exposure for such investments to

USD-equivalent interest rates.

(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest

rate swap.

(3)Represents the realized loss on an interest rate swap related to our Bank Loan Portfolio Joint Venture that was

entered into and subsequently terminated during the three months ended June 30, 2025, and the spot rate movement

in our non-designated foreign currency hedges, which are marked to market and recognized in interest expense.

Fair Value Hedges

The following table presents the net gains(losses)on derivatives and the related hedged items in fair value hedging

relationships for thethree and nine months ended September 30, 2025 ($ in thousands):

(1)Included within interest and related expenses presented in the consolidated statements of operations.

There were no fair value hedges outstanding during thenine months ended September 30, 2024.

Valuation and Other Comprehensive Income

The following table summarizes the fair value of our derivative financial instruments ($ in thousands):

(1)Included in other assets in our consolidated balance sheets.

(2)Included in other liabilities in our consolidated balance sheets.

The following table presents the effect of our derivative financial instruments on our consolidated statements of

comprehensive income and operations ($ in thousands):

(1)During thethree months ended September 30, 2025, wepaid net cash settlements of$68.5 million on our foreign

currency forward contracts. During thenine months ended September 30, 2025, wepaid net cash settlements of

$102.2 million on our foreign currency forward contracts. Those amounts are included as a component of

accumulated other comprehensive income on our consolidated balance sheets.

There were no cash flow hedges outstanding during thethree and nine months ended September 30, 2025.

Credit–Risk Related Contingent Features

We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to

default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the

lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our

derivative counterparties require that we post collateral to secure net liability positions. As of September 30, 2025, we were

in a netasset position with one of our counterparties and in a net liability position with our other counterparty related to our

foreign exchange hedges and hadno collateral posted with our counterparties. As of December 31, 2024, we were in a net

asset position with our counterparties related to our foreign exchange hedges and had$4.8 million of collateral posted with

one counterparty related to our interest rate swap.

15. EQUITY

Stock and Stock Equivalents

Authorized Capital

As of September 30, 2025 we had the authority to issue up to 500,000,000 shares of stock, consisting of 400,000,000

shares of class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing

requirements, our board of directors is authorized to cause us to issue additional shares of authorized stock without

stockholder approval. In addition, to the extent not issued, currently authorized stock may be reclassified between class A

common stock and preferred stock. As of both September 30, 2025 and December 31, 2024, we didnot have any shares of

preferred stock issued and outstanding.

Share Repurchase Program

In July 2024, our board of directors authorized the repurchase of up to$150.0 million of our class A common stock. Under

the repurchase program, repurchases may be made from time to time in open market transactions, in privately negotiated

transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1 under the

Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors, including

legal requirements, price and economic and market conditions. The repurchase program may be changed, suspended or

discontinued at any time and does not have a specified expiration date.

During thenine months ended September 30, 2025, we repurchased 2,653,583 shares of class A common stock at a

weighted-average price per share of$17.97, for a total cost of$47.7 million. During thenine months ended September 30,

2024 we repurchased 628,884 shares of class A common stock at a weighted-average price per share of$17.49, for a total

cost of$11.0 million. As of September 30, 2025, the amount remaining available for repurchases under the program was

$73.1 million. In October 2025, we repurchased an additional 3,336,416 shares of class A common stock at a weighted-

average price per share of$18.38, for a total cost of$61.3 million, such that the amount remaining available for

repurchases under the program was$11.6 million. Following these repurchases, our board of directors amended the

program, such that, as of the date of this filing, we are authorized to repurchase up to$150.0 million of our class A

common stock under the program, as amended.

Class A Common Stock and Deferred Stock Units

Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and

are entitled to receive dividends authorized by our board of directors and declared by us, in all cases subject to the rights of

the holders of shares of outstanding preferred stock, if any.

We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 18 for further

discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units

to certain members of our board of directors for services rendered. These deferred stock units are non-voting, but carry the

right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid

to holders of shares of class A common stock. Each vested deferred stock unit is settled by delivery of one share of class A

common stock upon the non-employee director’s separation from service.

The following table details the movement in our outstanding shares of class A common stock, including restricted class A

common stock and deferred stock units:

(1)Includes 331,611 and 401,802 deferred stock units held by members of our board of directors as of September 30,

2025 and 2024, respectively.

(2)Represents shares issued under our dividend reinvestment program during thenine months ended September 30,

2025 and 2024, respectively.

(3)Includes 29,140 and 41,282 shares of restricted class A common stock issued to our board of directors during the

nine months ended September 30, 2025 and 2024, respectively

(4)Net of 43,832 and 102,484 shares of restricted class A common stock forfeited under our stock-based incentive

plans during thenine months ended September 30, 2025 and 2024, respectively.

Dividend Reinvestment and Direct Stock Purchase Plan

We have adopted a dividend reinvestment and direct stock purchase plan under which an aggregate of 10,000,000 shares of

class A common stock are available for sale. Under the dividend reinvestment component of the plan, our class A common

stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common

stock. Such shares may, at our option, be newly issued shares from us, shares purchased by the plan administrator on the

open market, or a combination thereof. The direct stock purchase component of the plan allows stockholders and new

investors, subject to our approval, to purchase shares of class A common stock directly from us. During thenine months

ended September 30, 2025, we issued 1,778 shares of class A common stock and 652 shares of class A common stock were

purchased on the open market by the plan administrator under the dividend reinvestment component of the plan. During the

nine months ended September 30, 2024, we issued 4,647 shares of class A common stock under the dividend reinvestment

component of the plan. As of September 30, 2025, a total of 9,966,682 shares of class A common stock remained available

under the dividend reinvestment and direct stock purchase plan.

At the Market Stock Offering Program

As of September 30, 2025, we are party toseven equity distribution agreements, or ATM Agreements, pursuant to which

we may sell, from time to time, up to an aggregate sales price of$699.1 million of our class A common stock. Sales of

class A common stock made pursuant to our ATM Agreements may be made in negotiated transactions or transactions that

are deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual

sales depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital

needs, and our determination of the appropriate sources of funding to meet such needs. During thenine months ended

September 30, 2025 or September 30, 2024, we didnot issue any shares of our class A common stock under ATM

Agreements. As of September 30, 2025, shares of our class A common stock with an aggregate sales price of

$480.9 million remained available for issuance and sale under our ATM Agreements.

Dividends

We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as

calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal

Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the

discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will

depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors

as our board of directors deems relevant.

On September 15, 2025, we declared a dividend of $0.47 per share, or$80.2 million in aggregate, that was paid on October

15, 2025 to stockholders of record as of September 30, 2025.

The following table details our dividend activity ($ in thousands, except per share data):

Earnings Per Share

We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested

shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted

shares have the same rights as our other shares of class A common stock, including participating in any dividends, and

therefore have been included in our basic and diluted net income per share calculation. The shares issuable under our

Convertible Notes are included in dilutive earnings per share using the if-converted method when the effect is not

antidilutive.

The following table sets forth the calculation of basic and diluted net income per share of class A common stock based on

the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per

share data):

(1)Representsnet income (loss) attributable to Blackstone Mortgage Trust, Inc.

(2)For both thethree and nine months ended September 30, 2025 and September 30, 2024, our Convertible Notes were

not included in the calculation of diluted earnings per share, as the impact is antidilutive. Refer to Note 13 for further

discussion of our convertible notes.

Other Balance Sheet Items

Accumulated Other Comprehensive Income

As of September 30, 2025, total accumulated other comprehensive income was$9.3 million, representing$93.6 million of

net realized and unrealized gains related to changes in the fair value of derivative instruments, offset by$82.8 million of

cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies and

$1.5 million of unrealized losses related to the changes in the fair value of derivative instruments held by unconsolidated

entities. As of December 31, 2024, total accumulated other comprehensive income was$8.3 million, primarily representing

$272.1 million of net realized and unrealized gains related to changes in the fair value of derivative instruments offset by

$263.9 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign

currencies.

Non-Controlling Interests

The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily

Joint Venture that are not owned by us. A portion of our Multifamily Joint Venture’s consolidated equity and results of

operations are allocated to these non-controlling interests based on their pro rata ownership of our Multifamily Joint

Venture. As of September 30, 2025, our Multifamily Joint Venture’s total equity was$44.7 million, of which$38.0 million

was owned by us, and$6.7 million was allocated to non-controlling interests. As of December 31, 2024, our Multifamily

Joint Venture’s total equity was$45.9 million, of which$39.0 million was owned by us, and$6.9 million was allocated to

non-controlling interests.

16. OTHER EXPENSES

Our other expenses consist of the management and incentive fees we pay to our Manager and our general and

administrative expenses.

Management and Incentive Fees

Pursuant to a management agreement betweenour Manager and us, or our Management Agreement, our Manager earns a

base management fee in an amount equal to 1.50% per annum multiplied by our Equity, as defined in the Management

Agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i)20% and (ii) the

excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an

amount equal to 7.00% per annum multiplied by our Equity, provided that our Core Earnings over the prior three-year

period is greater than zero. Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net

income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and

excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv)

net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.

During thethree and nine months ended September 30, 2025, we incurred$16.8 million and $51.1 million, respectively, of

management fees payable to our Manager compared to$18.6 million and$56.3 million, respectively, during the same

periods in 2024. During thethree and nine months ended September 30, 2025 and 2024, we didnot incur any incentive fees

payable to our Manager.

As of September 30, 2025 and December 31, 2024, we had accrued management fees payable to our Manager of

$16.8 million and$18.5 million, respectively.

General and Administrative Expenses

General and admin istrative expenses consisted of the following ($ in thousands):

(1)During thethree and nine months ended September 30, 2025, we recognized an aggregate$66,000 and$259,000,

respectively, of expense related to our Multifamily Joint Venture, compared to $125,000 and$668,000, respectively,

during the same periods in 2024.

17. INCOME TAXES

We have elected to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. We

generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any

net capital gain, in order for U.S. federal income tax not to apply to our earnings. To the extent that we satisfy this

distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income

tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual

amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal

tax laws.

Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal

Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to

the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S.

federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification

as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on

our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full

taxable years. As of September 30, 2025 and December 31, 2024, we were in compliance with all REIT requirements.

Securitization transactions could result in the creation of taxable mortgage pools for federal income tax purposes. As a

REIT, so long as we own 100% of the equity interests in a taxable mortgage pool, we generally would not be adversely

affected by the characterization of the securitization as a taxable mortgage pool. Certain categories of stockholders,

however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and

certain tax-exempt stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased

taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool. We have not made

UBTI distributions to our common stockholders and do not intend to make such UBTI distributions in the future.

During thethree and nine months ended September 30, 2025, we recorded a current income tax provision of$1.5 million

and$3.1 million, respectively, primarily related to activities of our U.S. and foreign taxable subsidiaries and various state

and local taxes. During thethree and nine months ended September 30, 2024, we recorded a current income tax provision

of $613,000 and$2.8 million, respectively, primarily related to activities of our U.S. and foreign taxable subsidiaries and

various state and local taxes. We didnot have any deferred tax assets or liabilities as of September 30, 2025 or

December 31, 2024.

We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in

current or future periods. As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the

availability of our NOLs is generally limited to$2.0 million per annum by change of control provisions promulgated by the

Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of September 30, 2025, we had

estimated NOLs of$159.0 million that will expire in 2029, unless they are utilized by us prior to expiration. Previously, we

recorded a full valuation allowance against such NOLs as we expected that they would expire unutilized. However,

although uncertain, we may utilize a portion of NOLs prior to expiration. We do not expect the utilization of NOLs to have

a material impact on our consolidated financial statements. We have recorded a full valuation allowance against such NOLs

as it is probable that they will expire unutilized.

As of September 30, 2025, tax years 2021 through 2024 remain subject to examination by taxing authorities.

18. STOCK-BASED INCENTIVE PLANS

We are externally managed by our Manager and do not currently have any employees. However, as of September 30, 2025,

our Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors

were compensated, in part, through our issuance of stock-based instruments.

Under ourtwo current stock incentive plans, a maximum of 10,400,000 shares of our class A common stock may be issued

to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of September 30, 2025,

there were 5,980,325 shares available under our current stock incentive plans.

The following table details the movement in our outstanding shares of restricted class A common stock and the weighted-

average grant date fair value per share:

These shares generally vest in installments over a period ofthree years, pursuant to the terms of the respective award

agreements and the terms of our current stock incentive plans. The 1,582,654 shares of restricted class A common stock

outstanding as of September 30, 2025 will vest as follows:304,010 shares will vest in 2025;863,026 shares will vest in

2026; and 415,618 shares will vest in 2027. As of September 30, 2025, total unrecognized compensation cost relating to

unvested share-based compensation arrangements was$30.2 million based on the grant date fair value of shares granted.

This cost is expected to be recognized over a weighted-average period of 1.0 year from September 30, 2025.

19. FAIR VALUES

Assets and Liabilities Measured at Fair Value

The following table summarizes our assets and liabilities measured at fair value on a recurring basis ($ in thousands):

This table excludes$104.9 million of investments in unconsolidated entities that are measured at fair value using net asset

value as a practical expedient and not classified in the fair value hierarchy as September 30, 2025. No assets were measured

at fair value using net asset value as a practical expedient as of December 31, 2024. Refer to Note 5 for further information.

Refer to Note 2 for further discussion regarding fair value measurement.

Fair Value of Financial Instruments

As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not

recognized at fair value in the statement of financial position, for which it is practicable to estimate that value.

The following table details the book value, face amount, and fair value of the financial instruments described in Note 2 ($

Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market

prices, or Level 1 inputs. Estimates of fair value for securitized debt obligations, the Term Loans, and the Senior Secured

Notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value

significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding

fair value measurement of certain of our assets and liabilities.

20. VARIABLE INTEREST ENTITIES

We have financed a portion of our loans through the CLOs, all of which are VIEs. We are the primary beneficiary of, and

therefore consolidate, the CLOs on our balance sheet as we (i) control the relevant interests of the CLOs that give us power

to direct the activities that most significantly affect the CLOs, and (ii) have the right to receive benefits and obligation to

absorb losses of the CLOs through the subordinate interests we own.

During thenine months ended months ended September 30, 2025, we modifiedtwo loans that included, among other

changes, control over decision making at the respective properties. Similarly, during 2024, we modifiedtwo other loans

that included, among other changes, an equity interest in and/or control over decision-making at the property. As a result of

these modifications, our investments in these loans are VIEs. As of September 30, 2025, we are the primary beneficiary of,

and therefore consolidated the assets of these VIEs on our balance sheet as we (i) have the power to direct the activities that

most significantly affect the property, and (ii) have the right to receive excess sale proceeds upon exit.

The following table details the assets and liabilities of our consolidated VIEs ($ in thousands):

Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate

interests owned by us. The liabilities of these VIEs are non-recourse to us and can only be satisfied from the assets of the

VIEs. The consolidation of these VIEs results in an increase in our gross assets, liabilities, revenues and expenses, however

it does not affect our stockholders’ equity or net income. We are not obligated to provide, have not provided, and do not

intend to provide material financial support to these consolidated VIEs.

21. TRANSACTIONS WITH RELATED PARTIES

Our Manager

We are managed by our Manager pursuant to the Management Agreement. The current term of the Management

Agreement expires on December 19,2025, and it will be automatically renewed for aone-year term upon such date and

each anniversary thereafter unless earlier terminated.

As of September 30, 2025 and December 31, 2024, our consolidated balance sheets included$16.8 million and$18.5

million, respectively, of accrued management fees payable to our Manager. During thethree and nine months ended

September 30, 2025, we paid management fees of$17.0 million and$52.8 million, respectively, to our Manager, compared

to$18.7 million and$64.0 million, respectively, during the same periods in 2024. In addition, during thethree and nine

months ended September 30, 2025, we incurred expenses of $449,000 and$868,000, respectively, that were paid by our

Manager and have been or will be reimbursed by us, compared to$340,000 and$1.4 million, respectively, of such

expenses during the same periods in 2024.

As of September 30, 2025, our Manager held 828,213 shares of unvested restricted class A common stock, which had an

aggregate grant date fair value of$17.1 million. These shares vest in installments over three years from the date of

issuance. During thethree and nine months ended September 30, 2025, we recorded non-cash expenses related to shares

held by our Manager of$3.6 million and$10.9 million, respectively, compared to$4.2 million and$12.6 million,

respectively, during the same periods in 2024. Refer to Note 18 for further details on our restricted class A common stock.

As of September 30, 2025, our Manager, its affiliates (including Blackstone and Blackstone-advised investment vehicles),

Blackstone employees, and our directors held an aggregate 12,874,956 shares, or 7.5%, of our class A common stock, of

which 8,234,581 shares, or 4.8%, were held by Blackstone and its subsidiaries. Additionally, our directors held 331,611 of

deferred stock units as of September 30, 2025. Certain of the parties listed above have in the past purchased or sold shares

of our class A common stock in open market transactions, and such parties may in the future purchase or sell additional

shares of our class A common stock and/or engage in derivatives transactions related to our class A common stock. Any

such transactions would be made in the sole discretion of the relevant party based on market conditions and other

considerations relevant to such parties.

Affiliate Services

We have engaged certain portfolio companies owned by Blackstone-advised investment vehicles to provide various

services. The following table details the costs incurred for these services ($ in thousands):

(1)As applicable, provides management support, operational support, corporate support, and transaction support

servicesto certain of our investments directly.

(2)As applicable, provides management support, operational support, and corporate support services to certain of our

REO assets directly.

(3)Successor entity to EQ Management, LLC that provides the same services.

(4)Provides loan origination services related to certain of our investments.

We have engaged affiliates of our Manager to provide various services noted below. The following table details the costs

incurred for these services ($ in thousands):

(1)Affiliates of our Manager own an interest in the controlling entity of BTIG, LLC, or BTIG. BTIG has been engaged

as a broker for repurchases of our Senior Secured Notes and Convertible Notes. During thenine months ended

September 30, 2025, there wasno repurchase activity. During thenine months ended September 30, 2024, we

repurchased$30.8 million and$33.8 million of our Senior Secured Notes and Convertible Notes, respectively,

utilizing BTIG as a broker. Additionally, we have engaged BTIG as a sales agent to sell shares of our class A

common stock under one of our ATM Agreements. During thenine months ended September 30, 2025 and 2024, we

did not sell any shares under our ATM Agreements. Our engagements of BTIG are on terms equivalent to those of

unaffiliated third parties under similar arrangements.

(2)In the first quarter of 2024, in order to provide insurance for our REO assets, we became a member of Gryphon

Mutual Property Americas IC, or Gryphon, a captive insurance company owned by us and other Blackstone-advised

investment vehicles. A Blackstone affiliate provides oversight and advisory services to Gryphon and receives fees

based on a percentage of premiums paid for such policies. The fees and expenses of Gryphon, including insurance

premiums and fees paid to its manager, are paid annually and borne by us and the other Blackstone-advised

investment vehicles that are members of Gryphon pro rata based on insurance premiums paid for each party’s

respective properties. During thenine months ended September 30, 2025 and 2024, we paid$1.4 million and

$400,000, respectively, to Gryphon for insurance costs, inclusive of premiums, capital surplus contributions, taxes,

and our pro rata share of other expenses. Of these amounts,$86,000 and$30,000, respectively, was attributable to

the fee paid to a Blackstone affiliate to provide oversight and management services to Gryphon. The amounts

included in the table above reflect the amortization of the insurance expense over the relevant periods of the

respective policies.

(3)Lexington National Land Services, or LNLS, a title agent company owned by Blackstone, acts as an agent for one or

more underwriters in issuing title policies and/or providing support services in connection with investments made by

us, Blackstone and their affiliates and related parties, and third-parties. LNLS focuses on transactions in rate-

regulated states where the cost of title insurance is non-negotiable. LNLS will not perform services in non-regulated

states for us, unless (i) in the context of a portfolio transaction that includes properties in rate-regulated states, (ii) as

part of a syndicate of title insurance companies where the rate is negotiated by other insurers or their agents, (iii)

when a third-party is paying all or a material portion of the premium or (iv) when providing only support services to

the underwriter. LNLS earns fees, which would have otherwise been paid to third parties, by providing title agency

services and facilitating placement of title insurance with underwriters. Blackstone receives distributions from LNLS

in connection with investments made by us based on its equity interest in LNLS. In each case, there will be no

related expense offset to us.

(4)During thenine months ended September 30, 2025, Blackstone Securities Partners L.P., or BSP, an affiliate of our

Manager, was engaged as a member of the syndicate for both our B-6 Term Loan and our B-7 Term Loan. These

engagements were on terms equivalent to those of unaffiliated third parties.

CT Investment Management Co., LLC, or CTIMCO, serves as the special servicer of all of our CLOs, and the Manager

serves as the collateral manager and benchmark agent for our FL5 CLO issued in the first quarter of 2025. As of

September 30, 2025, two of our assets were in special servicing under the CLOs. CTIMCO and our Manager have waived

any fees that would be payable to a third party serving in such roles pursuant to the applicable agreements, and no such fees

have been paid or will become payable to CTIMCO or our Manager.

Other Transactions

During thenine months ended September 30, 2025, we invested$666.5 million infive senior loans and$123.6 million in

four mezzanine loans to unaffiliated third parties in which Blackstone-advised investment vehicles also invested at the

same level of the capital structure on a pari passu basis.

In the third quarter of 2025, Blackstone-advised investment vehicles acquired an aggregate$33.0 million participation in

our$453.1 million B-7 Term Loan. In the second quarter of 2025, Blackstone-advised investment vehicles acquired an

aggregate$83.9 million participation in our$1.0 billion B-6 Term Loan. In the fourth quarter of 2024, Blackstone-advised

investment vehicles acquired (i) an aggregate$62.5 million participation in our$650.0 million B-5 Term Loan, and (ii) an

aggregate$80.0 million of our$450.0 million December 2024 Senior Secured Notes. All of these transactions were part of

broad syndications led by third-party banks, and were on terms equivalent to those of unaffiliated third parties. BSP, an

affiliate of our Manager, was engaged as a member of the syndicate for these transactions. Our engagements of BSP are on

terms equivalent to those of unaffiliated parties. See “—Affiliate Services” for further information.

In the first quarter of 2025, as part of a broad syndication led by third-party banks, Blackstone-advised investment vehicles

acquired an aggregate$75.0 million of notes in our$1.0 billion FL5 CLO offering. All of these transactions were on terms

equivalent to those of unaffiliated third parties.

In the second quarter of 2025, we entered into our Bank Loan Portfolio Joint Venture with a Blackstone-advised

investment vehicle that concurrently acquired a$1.4 billion portfolio of performing commercial mortgage loans in which

we made an equity investment of$57.6 million and our ownership interest was 29%. In the third quarter of 2025, our Bank

Loan Portfolio Joint Venture acquired a$606.0 million portfolio of performing commercial mortgage loans in which we

made an equity investment of$44.7 million and our ownership interest was 50%. In the fourth quarter of 2024, we entered

into our Net Lease Joint Venture with a Blackstone-advised investment vehicle to invest in triple net lease properties. We

do not consolidate our Bank Loan Portfolio Joint Venture or our Net Lease Joint Venture as we do not have a controlling

financial interest. As of September 30, 2025, the aggregate value of our equity investment in our Bank Loan Portfolio Joint

Venture was$104.9 million and our ownership interest was 35%, and the aggregate value of our equity investment in our

Net Lease Joint Venture was$77.7 million and our ownership interest was 75%. We, these joint ventures, and the

Blackstone-advised investment vehicles, together, have engaged and may in the future engage in certain financing,

derivative and/or hedging arrangements related to these joint ventures. See Notes 5 and 7 for further information.

In the second quarter of 2025, two of our senior loans to borrowers controlled by a Blackstone-advised investment vehicle

were modified. The terms of the modifications (including maturity extensions and additional commitments, among other

changes) were negotiated by our third-party co-lenders. We continue to forgo all non-economic rights under the loans,

including voting rights, so long as the Blackstone-advised investment vehicle controls the applicable borrower.

During thenine months ended September 30, 2025, proceeds from four of our loans were used by the unaffiliated third-

party borrowers to repay$554.4 million of performing loans held by Blackstone-advised investment vehicles, and proceeds

from financing provided by Blackstone-advised investment vehicles were used by the unaffiliated third-party borrower to

repay$148.8 million of a performing loan of ours. During thenine months ended September 30, 2024, proceeds from a

loan held by a Blackstone-advised investment vehicle were used by the unaffiliated third-party borrower to repay

$98.6 million of a performing loan of ours, and proceeds from the sale of assets to a Blackstone-advised investment vehicle

were used by the unaffiliated third-party borrower to repay$59.0 million of a performing loan of ours to the borrower.

These transactions were initiated by the applicable unaffiliated third-party borrowers with the transaction terms and pricing

on market terms.

In the fourth quarter of 2024, pursuant to our Agency Multifamily Lending Partnership, we referred three loans to MTRCC

for origination, where the borrower was a Blackstone-advised investment vehicle. The loan terms and pricing were on

market terms negotiated by MTRCC. Pursuant to our Agency Multifamily Lending Partnership, we received$217,000 of

origination, servicing, and other fees for referring these loans during the fourth quarter of 2024.

In the fourth quarter of 2024, in connection with the modification of one of our senior loans, a Blackstone-advised

investment vehicle purchased a pari passu participation in the loan from a third party at a discount to par.

In the fourth quarter of 2024, the senior lenders negotiated a discounted payoff of a senior loan in which we held an

interest. As part of the discounted payoff, a Blackstone-advised investment vehicle’s mezzanine loan, which had been part

of the total financing, received a small repayment.

In the third quarter of 2024, we acquired$94.4 million of a total$560.0 million senior loan to an unaffiliated third party.

One Blackstone-advised investment vehicle holds a portion of the senior loan and another holds a mezzanine loan. We will

forgo all non-economic rights under our loan, including voting rights, so long as any Blackstone-advised investment

vehicle controls the mezzanine loan. The intercreditor agreement between the senior loan lender and the mezzanine lender

was negotiated on market terms by a third party without our involvement, and our 17% interest in the senior loan was made

on such market terms.

In 2019 and 2021, we acquired an aggregate participation of€350.0 million in a senior loan to a borrower that is partially

owned by a Blackstone-advised investment vehicle. We forgo all non-economic rights under the loan, including voting

rights, so long as the Blackstone-advised investment vehicle controls the borrower. The loan was negotiated by third parties

on market terms without our involvement, and our interest in the senior loan was subject to such market terms. In the third

quarter of 2024, the borrower completed a refinancing transaction involving new lenders and the existing lenders. We

elected to sell€232.0 million of our then remaining€347.0 million loan position to the new lenders at par and extend the

remainder on modified terms. The terms of the modification (which included, among other changes, an extension of the

maturity date, and increase in the interest rate, and additional guarantees) were negotiated by our third-party co-lender.

In the fourth quarter of 2018, we originated£148.7 million of a total£303.5 million senior loan to a borrower that is wholly

owned by a Blackstone-advised investment vehicle. The loan terms were negotiated by our third-party co-lender, and we

will forgo all non-economic rights under the loan, including voting rights, so long as a Blackstone-advised investment

vehicle controls the borrower. In the third quarter of 2024, we agreed to a refinancing transaction pursuant to which

£46.4 million of our£148.7 million participation in an existing£303.5 million loan to a borrower that is wholly owned by a

Blackstone-advised investment vehicle was repaid, and we received a£100.0 million participation in a new loan made to

the same borrower that continues to be controlled by a Blackstone-advised investment vehicle, and the terms of the loan

were modified to include, among other changes, an expanded collateral pool, an extension of the maturity date and an

increase in the interest rate. The transaction, including the terms of the modification, was negotiated by our third-party co-

lender.

22. COMMITMENTS AND CONTINGENCIES

Unfunded Commitments Under Loans Receivable

As of September 30, 2025, we had aggregate unfunded commitments of$1.5 billion across 57 loans receivable, and

$800.1 million of committed or identified financings for those commitments, resulting in net unfunded commitments of

$732.3 million. The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs,

and interest and carry costs. Loan funding commitments are generally subject to certain conditions, including, without

limitation, the progress of capital projects, leasing, and cash flows at the properties securing our loans. Therefore, the exact

timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of

the underlying collateral assets. We expect to fund our loan commitments over the remaining term of the related loans,

which have a weighted-average future funding period of 2.1 years.

Principal Debt Repayments

Our contractual principal debt repayments as of September 30, 2025 were as follows ($ in thousands):

(1)Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral.

Therefore, the allocation of payments under such agreements is generally allocated based on the maximum maturity

date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the

maturity date of the respective debt agreement is used.

(2)The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the initial principal balance

due in quarterly installments. Refer to Note 11 for further details on our Term Loans.

(3)Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer

to Note 13 for further details on our Convertible Notes.

(4)Total does not include$2.5 billion of consolidated securitized debt obligations, as the satisfaction of these liabilities

will not require cash outlays from us.

Board of Directors’ Compensation

As of September 30, 2025, oursix non-employee directors are entitled to annual compensation of$210,000 each, of which

$95,000 is paid in cash and$115,000 is paid in the form of deferred stock units or, at their election, shares of restricted

common stock. As of September 30, 2025, the othertwo board members, the chairperson of the board and our chief

executive officer, are not compensated by us for their service as directors. In addition, (i) the lead independent director

receives additional annual cash compensation of$30,000, (ii) the chairs of our audit, compensation, and corporate

governance committees receive additional annual cash compensation of$20,000,$15,000, and$10,000, respectively, and

(iii) the members of our audit and investment risk management committees receive additional annual cash compensation of

$10,000 and$7,500, respectively.

Litigation

From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of

September 30, 2025, we were not involved in any material legal proceedings.

23. SEGMENT REPORTING

Operating segments are defined as components of a business that can earn revenues and incur expenses for which discrete

financial information is available that is evaluated on a regular basis by the chief operating decision maker, or CODM. Our

CODM is, collectively, our Chief Executive Officer and Chief Financial Officer, who decide how to allocate resources and

assess performance. A single management team reports to the CODM, who manages the entire business.

We have determined that we haveone reportable segment based on how the CODM reviews and manages the business,

which originates and acquires commercial mortgage loans and related investments.

Our CODM reviews, among other things, consolidated net income (loss) that is reported on the Consolidated Statements of

Operations to make decisions, allocate resources and assess performance and does not evaluate the net income (loss) from

any separate geography or product line. The measure of segment assets is reported on the Consolidated Balance Sheets as

total consolidated assets.