BLACKSTONE MORTGAGE TRUST, INC.
For the period ended Mar 31, 2026. Filed Apr 29, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed Apr 29, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-04-29.
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Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 793 previous paragraphs and 783 current paragraphs.
381 unchanged; 232 reworded; 158 added; 161 removed; 19 previous and 12 current paragraphs rearranged.
Tables are not compared: 29 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (158)
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or CLOs, other securitization transactions, syndicating senior loans and/or participations, and other forms of asset-level
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estate. Blackstone Real Estate operates as one globally integrated business with investments in North America, Europe,
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Asia and Latin America. In the United States, Blackstone Real Estate is one of the largest owners of rental housing,
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is net of cumulative CECL reserves of$1.80 per share and accumulated depreciation and amortization of owned real estate
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assets of$0.57 per share.
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America, or GAAP. Distributable Earnings and Distributable Earnings prior to realized gains and losses helps us to
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Distributable Earnings and Distributable Earnings Prior to Realized Gains and Losses
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declaring our dividends.
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holders of our class A common stock assess the performance of our business excluding such realized gains or losses. We
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may make similar adjustments with respect to other types of investments, if and when applicable transactions occur. During
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the period from the first quarter of 2024 to the fourth quarter of 2025, we reported this metric as Distributable Earnings
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prior to charge-offs of CECL reserves, as the only applicable realized gains or losses during such period were charge-offs
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of CECL reserves. We utilize Distributable Earnings prior to realized gains and losses as an additional performance metric
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occurred.
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(4)Represents an adjustment to the realized loss on the sale of a property held at depreciated cost. Because depreciation
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and amortization is a non-cash expense that is excluded from Distributable Earnings, GAAP gains upon sale of a
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property are higher, and GAAP losses are lower, than the respective realized amounts reflected in Distributable
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Earnings. For Distributable Earnings, the amount is calculated as net sales proceeds less the property’s carrying
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value prior to depreciation and amortization.
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(8)Represents the amount included on our consolidated statements of operations.
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Investment Portfolio
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Our Investment Portfolio consists of our Loan Portfolio, our investments in our Bank Loan Portfolio Joint Venture and Net
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Lease Joint Venture, our owned real estate assets, and our investments in debt securities. The chart below details the
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composition of our Investment Portfolio as of March 31, 2026:
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Investment Portfolio(1)(2)(3)
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Included in our Loan Portfolio(4)
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(1)Our Investment Portfolio reflects the gross amount of our investments as of March 31, 2026, which consists of (i)
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our Loan Portfolio, which represents net book value less total loans receivable CECL reserves, (ii) our share of the
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carrying value of investments held by our Net Lease Joint Venture, (iii) our share of the fair value of the loans held
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by our Bank Loan Portfolio Joint Venture, (iv) the aggregate carrying value of our owned real estate assets, and (v)
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the fair value of our investments in debt securities.
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(4)Represents the types of properties securing the loans in our Loan Portfolio.
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commitments made under existing loans.
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$630.9 million.
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each property type.
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and the remaining 2% were impaired with a risk rating of “5.” As of March 31, 2026, two of our performing loans with an
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aggregate amortized cost basis of$156.7 million were in default. With respect to one of these loans, the default was a
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technical default as a result of the non-payment of an extension fee, the loan was not past its maturity date and was current
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on its interest payments. The other loan was in payment default and was less than 90 days past due on its interest payment.
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experienced sponsors.
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CLOs, or single-asset securitizations, asset-specific financings, syndicating senior loan participations, and corporate
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commercial assets and a proven track record of successfully navigating market cycles and emerging stronger through
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Macroeconomic Environment
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During the third quarter, real estate transaction activity continued to strengthen as the recovery of commercial real estate
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from its cyclical downturn continued, further supported by the decline in construction starts and continuing low supply
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(including in sectors in which our portfolio is concentrated, such as multifamily), as well as continuing improvement in the
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cost and availability of debt.
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The Federal Reserve lowered interest rates in September 2025, and interest rates are likely to continue to decline.
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Continued deceleration in inflation should also encourage further lowering of interest rates, which would be constructive
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for real estate values. Nevertheless, the timing, direction and extent of any future interest rate changes remain uncertain.
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Earlier this year, tariff announcements in the U.S. and ongoing global trade negotiations contributed to significant
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uncertainty and volatility of debt and equity markets. More recently, there has been greater clarity in the U.S. policy
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environment and lower market volatility. Nevertheless, a resurfacing of policy-driven uncertainty or market volatility could
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adversely affect us, our borrowers, their tenants and the value of the real estate assets related to our investments.
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CECL reserves of$4.16 per share.
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our dividends.
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of our business excluding such charge-offs. We utilize Distributable Earnings prior to charge-offs of CECL reserves as an
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charge-offs had not occurred.
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of a loan portfolio acquired by our Bank Loan Portfolio Joint Venture.
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(1)Includes new loan originations and acquisitions, and additional commitments made under existing loans.
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(2)Represents our share of loans that were acquired by our Bank Loan Portfolio Joint Venture. This reflects our
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aggregate 35% ownership interest in the joint venture, which is included in investments in unconsolidated entities on
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our consolidated balance sheets.
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totaled$1.6 billion. During thethree months ended September 30, 2025, we generated interest income of$346.0 million
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and incurred interest expense of$247.1 million, which resulted in$98.9 million of net interest income.
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was 1.90%.
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each collateral type.
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capitalized, and experienced sponsors.
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advantages derived from our position as part of Blackstone Real Estate’s real estate platform. Blackstone Real Estate is the
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largest owner of commercial real estate globally with over 12,500 commercial assets and a proven track record of
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successfully navigating market cycles and emerging stronger through periods of volatility. The market-leading real estate
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stress and uncertainty.
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including charge-offs of our CECL reserves of$42.1 million. This was offset by an$8.2 million increase in our general
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in our general CECL reserves was primarily as a result ofan increase in the historical loss rate used in reserve calculations
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as a result of additional CECL charge-offs.
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The charge-offs primarily related totwo previously impaired loans secured by a hospitality asset in New York, NY and an
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office asset in Atlanta, GA, that were resolved and transferred to REO during thethree months ended September 30, 2025
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pursuant to loan modifications that resulted in us consolidating the collateral assets. Refer to Notes 4 and 20 for further
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information.
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office sector with$382.2 million of reserves, generally driven by reduced tenant and capital markets demand in the office
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Form 10-Qand with our Annual Report on Form 10-K for the year ended December 31, 2024. In addition to historical
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Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to historical
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investments in a variety of ways, including borrowing under our credit facilities, issuing collateralized loan obligations, or
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investments in a variety of ways, including borrowing under secured credit facilities, issuing collateralized loan obligations,
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Blackstone Real Estate. Blackstone Real Estate is the largest owner of commercial real estate globally with over 12,500
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Blackstone Real Estate. Blackstone Real Estate was founded in 1991 and is the world’s largest owner of commercial real
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periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone platform deeply
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industrial, office, hospitality and retail assets. The market-leading real estate expertise derived from the strength of the
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informs our credit and underwriting process, and we believe gives us the tools to expertly manage the assets in our
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Blackstone platform deeply informs our credit and underwriting process, and we believe it gives us the tools to manage the
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portfolio and work with our borrowers throughout periods of economic stress and uncertainty.
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assets in our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.
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share, dividends declared, Distributable Earnings, Distributable Earnings prior to charge-offs, and book value per share.
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share, dividends declared, Distributable Earnings, Distributable Earnings prior to realized gains and losses, and book value
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For thethree months ended September 30, 2025, we recorded basic netearnings per share of$0.37, declared a dividend of
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per share. For thethree months ended March 31, 2026, we recorded basic netloss per share of$0.04, declared a dividend
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$0.47 per share, reported$0.24 per share of Distributable Earnings, and reported$0.48 per share of Distributable Earnings
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of $0.47 per share, reported$0.21 per share of Distributable Earnings, and reported$0.49 per share of Distributable
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prior to charge-offs. In addition, our book value as of September 30, 2025 was$20.99 per share, which is net of cumulative
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Earnings prior to realized gains and losses. In addition, our book value as of March 31, 2026 was$20.20 per share, which
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As further described below, Distributable Earnings and Distributable Earnings prior to charge-offs are measures that are
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As further described below, Distributable Earnings and Distributable Earnings prior to realized gains and losses are
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not prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP.
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measures that are not prepared in accordance with accounting principles generally accepted in the United States of
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effects of certain transactions and GAAP adjustments that we believe are not necessarily indicative of our current loan
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evaluate our performance, excluding the effects of certain transactions and GAAP adjustments that we believe are not
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portfolio and operations. In addition, Distributable Earnings and Distributable Earnings prior to charge-offs are
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necessarily indicative of our current investments and operations. In addition, Distributable Earnings and Distributable
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performance metrics we consider when declaring our dividends.
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Earnings prior to realized gains and losses are performance metrics we consider when declaring our dividends.
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(1)Represents net income attributable to Blackstone Mortgage Trust. Refer to Note 15 to our consolidated financial
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(1)Represents net (loss) income attributable to Blackstone Mortgage Trust. Refer to Note 14 to our consolidated
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statements for the calculation of diluted net (loss) income per share.
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financial statements for the calculation of diluted net (loss) income per share.
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Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves are non-GAAP measures. We
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Distributable Earnings and Distributable Earnings prior to realized gains and losses are non-GAAP measures. We define
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define Distributable Earnings as GAAP net income (loss), including realized gains and losses not otherwise recognized in
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Distributable Earnings as GAAP net income (loss), including realized gains and losses not otherwise recognized in current
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current period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and
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period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and
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calculating our incentive fee expense. Therefore, Distributable Earnings prior to charge-offs of CECL reserves is calculated
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calculating our incentive fee expense. Therefore, Distributable Earnings prior to realized gains and losses is calculated net
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net of the incentive fee expense that would have been recognized if such charge-offs had not occurred.
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of the incentive fee expense that would have been recognized if such realized gains or losses had not occurred.
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necessarily indicative of our current loan portfolio and operations, and is a performance metric we consider when declaring
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necessarily indicative of our current investment portfolio and operations, and is a performance metric we consider when
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Furthermore, we believe it is useful to present Distributable Earnings prior to charge-offs of CECL reserves to reflect our
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Furthermore, we believe it is useful to present Distributable Earnings prior to realized gains and losses, which include but
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direct operating results and help existing and potential future holders of our class A common stock assess the performance
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are not limited to charge-offs of CECL reserves, to reflect our direct operating results and help existing and potential future
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additional performance metric to consider when declaring our dividends. Distributable Earnings mirrors the terms of our
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to consider when declaring our dividends. Distributable Earnings mirrors the terms of our Management Agreement for
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Management Agreement for purposes of calculating our incentive fee expense. Therefore, Distributable Earnings prior to
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purposes of calculating our incentive fee expense. Therefore, Distributable Earnings prior to realized gains and losses is
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charge-offs of CECL reserves is calculated net of the incentive fee expense that would have been recognized if such
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calculated net of the incentive fee expense that would have been recognized if such realized gains or losses had not
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Distributable Earnings and Distributable Earnings prior to charge-offs of CECL reserves do not represent net income (loss)
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Distributable Earnings and Distributable Earnings prior to realized gains and losses do not represent net income (loss) or
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or cash generated from operating activities and should not be considered as alternatives to GAAP net income (loss), or
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cash generated from operating activities and should not be considered as alternatives to GAAP net income (loss), or
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needs. In addition, our methodology for calculating Distributable Earnings and Distributable Earnings prior to charge-offs
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needs. In addition, our methodology for calculating Distributable Earnings and Distributable Earnings prior to realized
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of CECL reserves may differ from the methodologies employed by other companies to calculate the same or similar
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gains and losses may differ from the methodologies employed by other companies to calculate the same or similar
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to charge-offs of CECL reserves may not be comparable to similar metrics reported by other companies.
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to realized gains and losses may not be comparable to similar metrics reported by other companies.
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The following table provides a reconciliation of Distributable Earnings and Distributable Earnings prior to charge-offs of
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The following table provides a reconciliation of Distributable Earnings and Distributable Earnings prior to realized gains
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CECL reserves to GAAP net income (loss) ($ in thousands, except per share data):
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and losses to GAAP net income (loss) ($ in thousands, except per share data):
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(1)Representsnet income attributable to Blackstone Mortgage Trust.
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(1)Representsnet (loss) income attributable to Blackstone Mortgage Trust.
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(3)Represents depreciation of REO assets and amortization of intangible real estate assets and liabilities.
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(3)Represents depreciation of owned real estate assets and amortization of intangible real estate assets and liabilities.
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(4)Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in
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(5)Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in
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GAAPnet income, but rather as a component of other comprehensive income in our consolidated financial
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GAAPnet (loss) income, but rather as a component of other comprehensive income in our consolidated financial
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(5)Allocable share of adjustments related to unconsolidated entities reflects our share of non-cash items such as (i)
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our share of non-cash items such as (i)$3.2 million of unrealized losses recorded by such unconsolidated entities,
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(6)Allocable share of adjustments related to unconsolidated entities for thethree months ended March 31, 2026 reflects
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(ii) $3.1 million of depreciation and amortization, and (iii) related adjustments for realized gains, if any. For the
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three months ended December 31, 2025, reflects our share of non-cash items such as (i)$(2.0) million of unrealized
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(2)Assets in our Loan Portfolio with multiple components are proportioned into the relevant property types based on
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the allocated value of each property type.
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(3)Investment types that represent less than 1% of our Investment Portfolio are excluded from the chart.
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Refer to section VII of this Item 2 for details of our loan portfolio, on a loan-by-loan basis.
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We benefit from the deep knowledge, experience and information advantages of our Manager, which is a part of
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Securitization. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any,
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ended December 31, 2025, as thethree months ended March 31, 2026 reflected a full quarter of expense recognition
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During thethree months ended March 31, 2026, we recorded income from unconsolidated entities of$1.4 million
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accounted for under the cost-recovery method.
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Distributable Earnings and Distributable Earnings prior to charge-offs helps us to evaluate our performance excluding the
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Distributable Earnings and Distributable Earnings Prior to Charge-Offs
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The following table details our loan origination activity ($ in thousands):
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Our portfolio monitoring and asset management operations benefit from the deep knowledge, experience, and information
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expertise derived from the strength of the Blackstone platform deeply informs our credit and underwriting process, and
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gives us the tools to expertly asset manage our portfolio and work with our borrowers throughout periods of economic
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factors for such loans. These factors included, among others, (i) the underlying collateral performance, (ii) discussions with
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the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s ability to pay the contractual
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of the loan's underlying collateral as of September 30, 2025.
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As of September 30, 2025, all borrowers under performing loans were in compliance with the applicable contractual terms
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of each respective loan, including any required payment of interest. Refer to Note 2 to our consolidated financial statements
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ended September 30, 2025 is primarily due to a$53.4 million decrease in our asset-specific CECL reserves, primarily as a
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ended September 30, 2025 compared to thenine months ended September 30, 2024, and (iii) a decline in interest income
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offset by a$2.6 billion decrease in the weighted-average principal balance of our outstanding financing arrangements
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(4)Represents, in each case at period end, the ratio of (i) total outstanding secured debt, securitizations, asset-specific
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(5)Represents, in each case at period end, the ratio of (i) total outstanding secured debt, securitizations, asset-specific
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may vary from quarter-to-quarter as our loan portfolio changes and market and economic conditions evolve. We believe
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recovery and nonaccrual methods, if any.
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for under the cost-recovery method.