BLACKSTONE MORTGAGE TRUST, INC.
For the period ended Sep 30, 2026. Filed Oct 29, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Oct 29, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-07-30.
0001061630-26-000069
Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-10-29.
0001061630-26-000097
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 813 previous paragraphs and 861 current paragraphs.
544 unchanged; 185 reworded; 125 added; 78 removed; 6 previous and 7 current paragraphs rearranged.
Tables are not compared: 28 previous and 30 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 (125)
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Recent Developments
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Loan Portfolio Sale
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During the three months ended September 30, 2026, we entered into an agreement to sell eight whole mortgage loans to an
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unaffiliated third party for total estimated net sales proceeds of$615.6 million, which resulted in these loans being
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classified as loans receivable, held-for-sale on our consolidated balance sheets as of September 30, 2026. This resulted in a
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$63.9 million valuation adjustment recognized to reduce the carrying value of these loans, which was$679.5 million prior
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to the adjustment. Two of the whole loans consisted of both a performing senior loan and an impaired subordinate loan.
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Thetwo subordinate loans carried$61.9 million of previously recorded asset-specific CECL reserves. Six of the loans were
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collateralized by office assets andtwo were collateralized by multifamily assets, all of which were located in the United
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States. The valuation adjustment was included invaluation adjustment on loans receivable, held-for-sale on our
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consolidated statements of operations during the three months ended September 30, 2026. The sale of these loans closed
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subsequent to September 30, 2026.
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Fourth Quarter Dividend
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In October 2026, we declared a dividend of$0.30 per share of common stock for the fourth quarter of 2026, which is
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payable on January 15, 2027 to stockholders of record as of December 31, 2026.
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(2)Represents unrealized losses recognized on loans that were classified as held-for-sale to reduce them to their fair
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value.
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(5)Represents non-cash valuation adjustments recognized to reduce the carrying values of owned real estate assets to
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their estimated fair value.
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Lease Joint Venture and Homebuilder Finance Joint Venture, our owned real estate assets, and ourinvestments in debt
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Investment Portfolio(1)(2)
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investments in debt securities.
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totaled$2.3 billion.
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(2)Included in these amounts are sales of$251.5 million of pari passu participations intwo loans collateralized by
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properties located in the United Kingdom.
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September 30, 2026,96% of our loans by principal balance earned a floating rate of interest, primarily indexed to
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floor was 2.28%.
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During thethree months ended September 30, 2026, the CECL reserves against ourloans receivable, held-for-investment
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portfolio increased by$199.5 million. This increase was primarily driven by a$293.8 million increase in our asset-specific
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CECL reserve, partially offset by a$25.5 million decrease in our general CECL reserve. Theincrease in our asset-specific
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reserve was primarily driven bysix additional loans with an aggregate amortized cost basis of$787.8 million that were
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impaired during thethree months ended September 30, 2026, of which five are secured by office properties, andone is
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additional reserve charge-offs.
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The increase in our asset-specific reserve was reduced by (i) the transfer of$61.9 million of CECL reserves related totwo
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previously impaired subordinate loans that were transferred to held-for-sale as of September 30, 2026, which were sold
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subsequent to September 30, 2026, and (ii) charge-offs of$6.9 million primarily related to the resolution ofone previously
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result of these changes, our total loans receivable CECL reserves increased to$597.3 million as of September 30, 2026.
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During thethree months ended September 30, 2026, we received$4.4 million of cash proceeds from previously impaired
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held by our Bank Loan Portfolio Joint Venture was$451.9 million.
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entities. As of September 30, 2026, our investment in the joint venture totaled$92.3 million. During thenine months ended
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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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statements.
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(8)Represents the amount included on our consolidated statements of operations.
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Lease Joint Venture and Homebuilder Finance Joint Venture, our owned real estate assets, and our investment in debt
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Investment Portfolio(1)(2)(3)
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(3)Investment types that represent less than 1% of our Investment Portfolio are included in Other Investments in the
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chart, which includes our Homebuilder Finance Joint Venture and investment in debt securities.
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$1.2 billion.
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June 30, 2026 ($ in thousands):
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non-recourse and term-matched to the corresponding collateral loans.
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During thethree months ended June 30, 2026, we recorded a netincrease of$106.2 million in the CECL reserves against
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our loans receivable portfolio, primarily driven by a$134.6 million increase in our asset-specific CECL reserve, partially
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offset by a$28.3 million decrease in our general CECL reserve, bringing our total loans receivable CECL reserves to
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$397.8 million as of June 30, 2026. Theincrease in our asset-specific reserve was driven bythree additional loans with an
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aggregate amortized cost basis of$502.0 million that were impaired during thethree months ended June 30, 2026, of which
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two are secured by office properties, and the other is secured by an office/mixed-use asset. The office sector recovery in
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continue to support their assets. Impairments are determined individually as a result of changes in specific credit quality
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factors for such loans. These factors include, among others, (i) the performance of the underlying property collateral, (ii)
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discussions with the borrower, (iii) borrower events of default, and (iv) other facts and circumstances affecting the
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borrower’s willingness and ability to satisfy its contractual obligations under the terms of the loan. During thethree months
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increase in our asset-specific reserve was partially offset by charge-offs of$28.6 million primarily related to the resolution
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receivable balance, partially offset by new loan originations and an increase in the historical loss rate used in reserve
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calculations related to the additional CECL reserve charge-offs.
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collateral as of June 30, 2026.
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No income was recorded on our impaired loans subsequent to determining that such loans were impaired. During thethree
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months ended June 30, 2026, we didnot receive any cash proceeds from such loans that would have been applied as a
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Bank Loan Portfolio Joint Venture was$502.2 million.
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entities. As of June 30, 2026, our investment in the joint venture totaled$99.8 million. During thesix months ended
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$9.0 million ofincome from unconsolidated entities in our consolidated statements of operations.
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venture totaled$185.9 million. During thesix months ended June 30, 2026, we contributed$100.0 million to the joint
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family homes, and to continue to acquire and fund such loans in the future, or our Homebuilder Finance Joint Venture. The
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loans are secured by single family homes under construction that are located throughout various markets in the United
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States. We have an aggregate 45% ownership interest in the joint venture as of June 30, 2026. As of June 30, 2026, our
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share of the fair value of the loans held by our Homebuilder Finance Joint Venture was$149.1 million.
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entities. As of June 30, 2026, our investment in the joint venture totaled$36.3 million. During thethree andsix months
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recorded$0.3 million ofincome from unconsolidated entities in our consolidated statements of operations.
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per share. For thethree months ended June 30, 2026, we recorded basic netloss per share of$0.48, declared a dividend of
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per share. For thethree months ended September 30, 2026, we recorded basic netloss per share of$1.95, declared a
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$0.47 per share, reported$0.31 per share of Distributable Earnings, and reported$0.48 per share of Distributable Earnings
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dividend of $0.47 per share, reported$0.38 per share of Distributable Earnings, and reported$0.42 per share of
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prior to realized gains and losses. In addition, our book value as of June 30, 2026 was$19.31 per share, which is net of
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Distributable Earnings prior to realized gains and losses. In addition, our book value as of September 30, 2026 was$17.06
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cumulative CECL reserves of$2.43 per share, and accumulated depreciation and amortization of owned real estate assets,
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per share, which is net of cumulative CECL reserves of$3.64 per share, and accumulated depreciation and amortization of
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including our share related to unconsolidated entities, of$0.76 per share.
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owned real estate assets, including our share related to unconsolidated entities, of$0.93 per share.
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and losses to GAAP net income (loss) ($ in thousands, except per share data):
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and losses to GAAPnet loss ($ in thousands, except per share data):
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(2)Represents realized losses related to loan principal amounts deemed non-recoverable.
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(3)Represents realized losses related to loan principal amounts deemed non-recoverable.
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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 depreciation of owned real estate assets and amortization of intangible real estate assets and liabilities.
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(5)Represents realized (losses) gains on the repatriation of unhedged foreign currency. These amounts were not
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(6)Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in
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included in GAAPnet loss, but rather as a component of other comprehensive income in our consolidated financial
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GAAPnet loss, but rather as a component of other comprehensive income in our consolidated financial statements.
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(6)Allocable share of adjustments related to unconsolidated entities for thethree months ended June 30, 2026 reflects
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(7)Allocable share of adjustments related to unconsolidated entities for thethree months ended September 30, 2026
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our share of non-cash items such as (i)$(3.8) million of unrealized gains recorded by such unconsolidated entities,
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reflects our share of non-cash items such as (i)$2.1 million of unrealized losses recorded by such unconsolidated
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(ii) $4.3 million of depreciation and amortization, and (iii) related adjustments for realized gains, if any. For the
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entities, (ii) $5.2 million of depreciation and amortization, and (iii)$(0.3) million of related adjustments for realized
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three months ended March 31, 2026, reflects our share of non-cash items such as (i)$3.2 million of unrealized losses
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gains. For thethree months ended June 30, 2026, reflects our share of non-cash items such as (i)$(3.8) million of
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recorded by such unconsolidated entities, (ii)$3.1 million of depreciation and amortization, and (iii) related
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unrealized gains recorded by such unconsolidated entities, (ii)$4.3 million of depreciation and amortization, and
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adjustments for realized gains, if any.
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(iii) related adjustments for realized gains, if any.
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(7)Represents (i) the non-cash income recognized under GAAP related to our Agency Multifamily Lending
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(8)Represents (i) the non-cash income recognized under GAAP related to our Agency Multifamily Lending
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(1)Our Investment Portfolio reflects the gross amount of our investments as of June 30, 2026, which consists of (i) our
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(1)Our Investment Portfolio reflects the gross amount of our investments as of September 30, 2026, which consists of
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Loan Portfolio, which represents net book value less total loans receivable CECL reserves, (ii) our share of the
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(i) our Loan Portfolio, which represents net book value of loans held-for-investment, which reflects our total loans
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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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receivable CECL reserves, (ii) our share of the carrying value of investments held by our Net Lease Joint Venture,
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by both our Bank Loan Portfolio Joint Venture and Homebuilder Finance Joint Venture, (iv) the aggregate carrying
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(iii) our share of the fair value of the loans held by both our Bank Loan Portfolio Joint Venture and Homebuilder
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value of our owned real estate assets, and (v) the fair value of our investments in debt securities.
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Finance Joint Venture, (iv) the aggregate carrying value of our owned real estate assets, and (v) the fair value of our
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(4)Represents the types of properties securing the loans in our Loan Portfolio.
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(3)Represents the types of properties securing the loans in our Loan Portfolio.
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During thethree months ended June 30, 2026, we originated or acquired$1.2 billion of loans, inclusive of additional
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During thethree months ended September 30, 2026, we originated or acquired$264.2 million of loans, inclusive of
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commitments made under existing loans.
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additional commitments made under existing loans.
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During thethree months ended June 30, 2026, loan fundings totaled$1.2 billion and loan repayments and sales totaled
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During thethree months ended September 30, 2026, loan fundings totaled$366.3 million and loan repayments and sales
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The remaining 3% of our loans by principal balance earned a fixed rate of interest.
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SOFR. The remaining 4% of our loans by principal balance earned a fixed rate of interest.
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methods, if any. As of June 30, 2026, 47% of our loans by principal balance were subject to yield maintenance or
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methods, if any. As of September 30, 2026, 44% of our loans by principal balance were subject to yield maintenance
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other prepayment restrictions and 53% were open to repayment by the borrower without penalty.
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or other prepayment restrictions and 56% were open to repayment by the borrower without penalty.
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(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.
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(1)Includes Euro, British Pound Sterling, Australian Dollar, and Canadian Dollar currencies.
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(3)As of June 30, 2026, the weighted-average index rate floor of our floating-rate Loan Portfolio principal balance was
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(3)As of September 30, 2026, the weighted-average index rate floor of our floating-rate Loan Portfolio principal
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1.53%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was 2.11%.
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balance was 1.73%. Excluding 0.00% index rate floors and loans with no floor, the weighted-average index rate
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(3)Includes floating rate loans indexed to STIBOR, CORRA, and BBSY indices.
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(3)Includes floating rate loans indexed to CORRA and BBSY indices.
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The charts below detail the geographic distribution and types of properties securing our Loan Portfolio, as of June 30,
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The charts below detail the geographic distribution and types of properties securing our Loan Portfolio, as of
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1% of net loan exposure are excluded from the chart.
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loans. Geographic locations that represent less than 1% of net loan exposure are excluded from the chart.
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As of June 30, 2026, 97% of our loans, based on net loan exposure, were performing with risk ratings of “1” through “4,”
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As of September 30, 2026, 93% of our loans, based on net loan exposure, were performing with risk ratings of “1” through
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and the remaining 3% were impaired with a risk rating of “5.” As of June 30, 2026, one of our performing loans with an
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“4,” and the remaining 7% were impaired with a risk rating of “5.” As of September 30, 2026, one of our performing loans
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amortized cost basis of$148.8 million was in payment default, was less than 90 days past due on its interest payment, and
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with an amortized cost basis of$149.8 million was in payment default, was greater than 90 days past due on its interest
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had a risk rating of “4.” This loan was not impaired as of June 30, 2026 as we expect to fully recover all contractual
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payment, and had a risk rating of “4.” This loan was not impaired as of September 30, 2026 as we expect to fully recover
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principal and interest amounts due under the loan agreement. All other borrowers under performing loans were in
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all contractual principal and interest amounts due under the loan agreement. All other borrowers under performing loans
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internal risk ratings as of September 30, 2026 ($ in thousands):
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estate sectors, which has, in certain cases, extended business plans on transitional properties and impacted their
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newly impaired loans moving out of the general CECL reserve pool, and a decrease in our loans receivable, held-for-
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in the weighted-average principal balance of our outstanding financing arrangements during thethree months ended
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loans moving out of the general CECL reserve, partially offset by an increase in the historical loss rate used in reserve
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further discussion of our CECL reserves.
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recovery and nonaccrual methods, if any.
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non-recourse and term-matched to the corresponding collateral loans. Geographic locations that represent less than
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certain of our floating rate loans.
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during the three months ended June 30, 2026. These decreases were partially offset by an increase in interest income
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Management Agreement, primarily resulting from charge-offs of CECL reserves.
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During thethree months ended June 30, 2026, we recorded a$134.4 million increase in our CECL reserves, as compared to
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The income tax provision increased by$1.3 million during thethree months ended June 30, 2026 compared to thethree