Market Analysis by covering: S&P 500, Chimera Investment Corporation, AGNC Investment Corp, Blackstone Mortgage Trust Inc. Read 's Market Analysis on Investing.com ...

Financial Performance - Q2 GAAP basic income per share was $0.04, Distributable Earnings per share was $0.19, and Distributable EPS prior to charge-offs was $0.45[6] - Paid a Q2 dividend of $0.47 per share, equating to a 9.7% annualized dividend yield[6] - Book value per share was $21.04, incorporating $4.39 per share of CECL reserves[6] Portfolio Activity - Originated $2.2 billion and collected $1.6 billion of repayments in Q2, resulting in a quarter-end portfolio of $18.4 billion across 144 loans[6] - Acquired a $0.4 billion share of a performing senior loan portfolio from a US regional bank at a discount to par[6] - The portfolio is well-diversified, with 27% in multifamily, 20% in US office, and 18% in industrial properties[12] - Office exposure has decreased by 29% over the past year and now comprises 28% of the portfolio[13] Credit Quality - Resolved $0.2 billion of impaired assets in Q2 above aggregate carrying value, with total resolutions of $1.7 billion since Q3 2024, reducing the impaired loan balance by 55% from its peak[6] - CECL reserves remained stable QoQ at $755 million, representing 3.8% of the principal balance[6] - The performing loan portfolio stands at 94%[18] Capitalization and Liquidity - Maintained strong liquidity of $1.1 billion to support portfolio turnover into new investments[6] - Repriced $1.0 billion of Term Loan B, reducing the spread by 65bps and extending the maturity to 2030[6]

分组1 - Blackstone Mortgage Trust reported quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.20 per share, and down from $0.56 per share a year ago, representing an earnings surprise of -5.00% [1] - The company posted revenues of $94.81 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 13.72%, and down from $126.77 million year-over-year [2] - Blackstone Mortgage shares have increased approximately 11.3% since the beginning of the year, outperforming the S&P 500's gain of 8.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $113.85 million, and for the current fiscal year, it is $1.04 on revenues of $429.87 million [7] - The Zacks Industry Rank for REIT and Equity Trust is in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8] - The estimate revisions trend for Blackstone Mortgage was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting expected outperformance in the near future [6]

[Form 8-K Current Report](index=1&type=section&id=Form%208-K%20Current%20Report) [Cover Page & General Information](index=1&type=section&id=Cover%20Page%20%26%20General%20Information) This section identifies Blackstone Mortgage Trust, Inc. as the registrant filing a Form 8-K, with its Class A common stock listed on the NYSE - Company: Blackstone Mortgage Trust, Inc[1](index=1&type=chunk) - Report Date (Earliest Event): July 30, 2025[1](index=1&type=chunk) - Registered Security: Class A common stock, par value $0.01 per share, trading under the symbol BXMT on the New York Stock Exchange[2](index=2&type=chunk) [Item 2.02 Results of Operations and Financial Condition](index=4&type=section&id=Item%202.02%20Results%20of%20Operations%20and%20Financial%20Condition) Blackstone Mortgage Trust, Inc. announced Q2 2025 financial results through a furnished press release and presentation, not filed under Section 18 - The company issued a press release and a detailed presentation on July 30, 2025, to announce its financial results for the second quarter ended June 30, 2025[5](index=5&type=chunk) - The press release and presentation are furnished as Exhibit 99.1 and Exhibit 99.2, respectively[5](index=5&type=chunk) - The information provided under this item is considered 'furnished' and not 'filed' for the purposes of Section 18 of the Securities Exchange Act of 1934, limiting liability under that section[6](index=6&type=chunk) [Item 9.01 Financial Statements and Exhibits](index=4&type=section&id=Item%209.01%20Financial%20Statements%20and%20Exhibits) This section lists the exhibits furnished with the Form 8-K, including the Q2 2025 financial results press release and presentation Exhibits Furnished with Form 8-K | Exhibit No. | Description | | :--- | :--- | | 99.1 | Press Release of Blackstone Mortgage Trust, Inc. dated July 30, 2025 | | 99.2 | Presentation of Blackstone Mortgage Trust, Inc. dated July 30, 2025 | | 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | [Signature](index=5&type=section&id=Signature) The report is duly signed by Anthony F. Marone, Jr., Chief Financial Officer of Blackstone Mortgage Trust, Inc., on July 30, 2025 - The report was signed on July 30, 2025, by Anthony F. Marone, Jr., in his capacity as Chief Financial Officer[10](index=10&type=chunk)

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures for the period [Financial Statements](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) Blackstone Mortgage Trust reported Q2 2025 net income of **$7.0 million** ($0.04 per share), a significant improvement from a **$61.1 million net loss** in Q2 2024, driven by a lower CECL reserve increase, with total assets at **$20.6 billion** and total equity at **$3.6 billion** Consolidated Balance Sheet Highlights (in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$20,584,441** | **$19,801,955** | | Loans receivable, net | $18,965,254 | $18,313,582 | | **Total Liabilities** | **$16,960,904** | **$16,007,766** | | Secured debt, net | $10,683,320 | $9,696,334 | | **Total Equity** | **$3,623,537** | **$3,794,189** | Consolidated Statement of Operations Highlights (in thousands, except per share data) | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Income from loans, net** | **$94,810** | **$126,772** | **$184,634** | **$269,165** | | Increase in CECL reserve | ($45,593) | ($152,408) | ($95,098) | ($387,277) | | **Net income (loss)** | **$6,984** | **($60,202)** | **$6,633** | **($183,372)** | | Net income (loss) per share | $0.04 | ($0.35) | $0.04 | ($1.06) | - The company declared a dividend of **$0.47 per share** for the quarter ended June 30, 2025, consistent with the prior quarter but lower than the **$0.62 per share** declared in the same quarter of 2024[219](index=219&type=chunk)[220](index=220&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=58&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS%20%28MD%26A%29) Management views commercial real estate as recovering despite volatility, with the loan portfolio growing to **$19.9 billion** (94% performing), Q2 2025 key metrics including **$0.04 EPS** and **$0.19 Distributable Earnings per share**, and strong liquidity maintained at **$1.1 billion** Key Financial Indicators (per share) | Metric | Q2 2025 | Q1 2025 | | :--- | :--- | :--- | | Net Earnings per Share, basic | $0.04 | ($0.00) | | Distributable Earnings per Share, basic | $0.19 | $0.17 | | Dividends Declared per Share | $0.47 | $0.47 | | Book Value per Share | $21.04 | $21.42 | - The loan portfolio had a principal balance of **$19.9 billion** across 144 loans with a weighted-average risk rating of 3.1, with **94%** of loans performing (risk-rated 1-4)[300](index=300&type=chunk)[310](index=310&type=chunk)[314](index=314&type=chunk) - Total liquidity as of June 30, 2025, was **$1.1 billion**, consisting of cash, available borrowings, and net receivables from servicers[385](index=385&type=chunk) - In Q2 2025, the company entered into a Bank Loan Portfolio Joint Venture with a Blackstone-advised vehicle, acquiring a **29% interest** in a **$1.4 billion portfolio** of 171 performing senior commercial real estate loans[326](index=326&type=chunk)[327](index=327&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=91&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company's primary market risks include interest rate, credit, and currency risks, with **98%** of loans being floating-rate, a **$558.8 million** CECL reserve on 14 loans, and currency risk largely mitigated by matching asset and liability currencies - As of June 30, 2025, **98%** of the company's loans by principal balance earned a floating rate of interest, creating a net positive exposure to rising interest rates[437](index=437&type=chunk) Interest Rate Sensitivity Analysis (Net Impact on Earnings over 12 months, in thousands) | Change in Rates | Net Exposure Impact | | :--- | :--- | | +100 Basis Points | $14,376 | | +50 Basis Points | $7,120 | | -50 Basis Points | ($6,849) | | -100 Basis Points | ($8,103) | - Credit risk is a key focus, with an asset-specific CECL reserve of **$558.8 million** on 14 loans with an aggregate amortized cost basis of **$1.6 billion**[445](index=445&type=chunk) - Currency risk is managed by matching asset and liability currencies and hedging substantially all net asset exposure to foreign currencies with forward contracts[452](index=452&type=chunk)[453](index=453&type=chunk) [Controls and Procedures](index=93&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) The company's CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[455](index=455&type=chunk) - No changes occurred during the most recent quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[456](index=456&type=chunk) [PART II. OTHER INFORMATION](index=94&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides information on legal proceedings, risk factors, unregistered sales of equity securities, defaults upon senior securities, and exhibits [Legal Proceedings](index=94&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The company reported no material legal proceedings as of June 30, 2025 - The company reports no material legal proceedings as of the end of the quarter[458](index=458&type=chunk) [Risk Factors](index=94&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to previously disclosed risk factors were reported for the quarter - No material changes to the previously disclosed risk factors were reported for the quarter[459](index=459&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=95&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) During Q2 2025, the company repurchased **2,100 shares** of common stock at an average price of **$18.38 per share**, with **$89.2 million** remaining available under the repurchase program Share Repurchases for Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 0 | N/A | | May 2025 | 2,100 | $18.38 | | June 2025 | 0 | N/A | | **Total** | **2,100** | **$18.38** | - The share repurchase program, authorized in July 2024 for up to **$150.0 million**, had **$89.2 million** remaining available as of June 30, 2025[461](index=461&type=chunk) [Defaults Upon Senior Securities](index=96&type=section&id=ITEM%203.%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon its senior securities during the period - None[462](index=462&type=chunk) [Exhibits](index=97&type=section&id=ITEM%206.%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including amendments to credit agreements and required CEO/CFO certifications - Key exhibits filed include amendments to the Term Loan Credit Agreement and various Master Repurchase Agreements, as well as required CEO/CFO certifications[464](index=464&type=chunk)

Group 1 - The article highlights Blackstone Mortgage Trust (NYSE: BXMT) as a noteworthy real estate finance company that originates senior loans [1] - Binary Tree Analytics (BTA) aims to provide transparency and analytics in capital markets, focusing on CEFs, ETFs, and Special Situations, with a goal of delivering high annualized returns and low volatility [1] Group 2 - The author has a beneficial long position in BXMT shares through various financial instruments [2]

Core Viewpoint - Blackstone Mortgage Trust (BXMT) reported quarterly earnings of $0.17 per share, significantly exceeding the Zacks Consensus Estimate of $0.01 per share, but down from $0.65 per share a year ago, indicating a substantial earnings surprise of 1,600% [1] Group 1: Earnings Performance - The company has surpassed consensus EPS estimates for the last four quarters, with a notable earnings surprise of 237.50% in the previous quarter [2][1] - Blackstone Mortgage's revenues for the quarter ended March 2025 were $89.82 million, missing the Zacks Consensus Estimate by 22.85%, and down from $142.39 million year-over-year [2] Group 2: Stock Performance and Outlook - Blackstone Mortgage shares have increased by approximately 8.9% since the beginning of the year, contrasting with a decline of -5.5% in the S&P 500 [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook for upcoming quarters [4][3] Group 3: Earnings Estimates and Industry Context - The current consensus EPS estimate for the upcoming quarter is $0.37 on revenues of $120.36 million, and for the current fiscal year, it is $1.07 on revenues of $478.78 million [7] - The REIT and Equity Trust industry, to which Blackstone Mortgage belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of effectively zero and distributable earnings (DE) of $0.17 per share, with DE prior to charge-offs at $0.42 per share [4][20] - The company paid a dividend of $0.47 per share for the first quarter [4] - The impaired loan balance decreased by 58% from its peak, now standing at $970 million or 5% of the portfolio [15][22] Business Line Data and Key Metrics Changes - The company achieved $1.8 billion in repayments, with 86% from office properties, and $1.6 billion in new investments, marking the highest quarterly originations in over two years [10] - The portfolio is now 95% performing, up from 88% at the trough, with US office exposure reduced from nearly 40% to 21% [12][22] - The company commenced a net lease investment strategy, acquiring 27 properties concentrated in defensive businesses with average lease terms of 18 years [13][14] Market Data and Key Metrics Changes - The company noted that real estate cash flows are expected to benefit from diminished supply, which is at historically low levels [7] - The overall cost of capital remains around 40% lower than peak levels, with banks and investors under-allocated to real estate, supporting continued lending demand [8] Company Strategy and Development Direction - The company is focused on minimizing credit risk while leveraging its platform to generate target returns, with 90% of 2025 activity backed by multifamily properties or cross-collateralized industrial portfolios [11] - The strategy includes optimizing the balance sheet, with liquidity at $1.6 billion and a leverage ratio of 3.4 times, the lowest in three years [16][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the real estate sector's ability to outperform despite macroeconomic uncertainties, citing a recovery phase and a well-functioning capital market [6][7] - The company anticipates continued strong performance in multifamily and industrial sectors, while monitoring the hospitality sector closely [60][61] Other Important Information - The company has a robust balance sheet with nearly 70% of its structure being non-mark-to-market, providing stability in volatile market conditions [17][27] - The company executed a $1 billion CLO with a 30-month reinvestment feature, enhancing its capital structure [27] Q&A Session Summary Question: What is the current status of the four-rated loans? - The company has around $500 million in non-modified four-rated office loans, down significantly from $1 billion a year ago, and is focused on modifications and resolutions [33][34] Question: How do you see the impact of the new CLO on originations? - The new CLO provides optionality for financing new originations, with strong relationships with lenders ensuring good liquidity [35][36] Question: How do you expect loan growth in the coming quarters? - The company aims to grow the portfolio towards the $20 billion mark, with a focus on credit quality [44] Question: What trends are observed in the repo market? - The company has maintained strong relationships with lenders, with banks eager to grow their credit facility exposure [50][53] Question: How is the performance of the hospitality sector? - Hospitality exposure is currently at 6.5% of the portfolio, and while it is being monitored closely, the overall performance has been resilient [57][60] Question: What is the outlook for international exposure? - The company has a strong presence in Europe, with no specific cap on international exposure, and is optimistic about the relative value of investments in that market [74][78] Question: Will there be another CLO issuance this year? - The company is monitoring the CLO market closely and sees potential for another issuance later in the year if market conditions remain favorable [80][82] Question: What is the pace of resolving remaining impaired loans? - The company is optimistic about continuing to resolve impaired assets, with a clear path for several resolutions already in progress [84][86]

Financial Data and Key Metrics Changes - For Q1 2025, the company reported a GAAP net loss of effectively zero and distributable earnings of $0.17 per share, with distributable earnings prior to charge-offs at $0.42 per share [5][21] - The company paid a dividend of $0.47 per share for the first quarter [5] - The capital allocation strategy has improved the credit composition of the overall asset base, with 95% of the portfolio performing, up from 88% at the trough [12] Business Line Data and Key Metrics Changes - The company achieved $1.8 billion in repayments, with 86% in office, and $1.6 billion in new investments, marking the highest level of quarterly originations in over two years [10] - The investment strategy focuses on minimizing credit risk while leveraging platform advantages, with 90% of 2025 activity backed by multifamily properties or cross-collateralized industrial portfolios [11] - The impaired loan balance has been reduced by 58% from the peak, with resolutions contributing to a $64 million reversal in the CECL reserve [15][25] Market Data and Key Metrics Changes - The company noted that real estate is well-positioned to outperform despite macroeconomic uncertainties, with capital broadly available and cost of capital around 40% lower than peak levels [8][9] - The company has diversified geographically, with over 40% of investments abroad, and US office exposure reduced from nearly 40% to just 21% [12] Company Strategy and Development Direction - The company is focused on three key drivers: portfolio turnover through repayments and redeployment, resolution of impaired loans, and optimization of the balance sheet [6][10] - The company has commenced a net lease investment strategy, acquiring 27 properties in defensive sectors with strong lease terms [14] - The company aims to grow its portfolio towards the $20 billion target discussed in the previous quarter while being mindful of credit risks [44] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the real estate market's recovery, noting that cash flows should benefit from diminished supply and historically low levels of new construction [7][9] - The company is well-positioned with a strong balance sheet, $1.6 billion in liquidity, and a debt-to-equity ratio of 3.4 times, the lowest in three years [16][27] - Management highlighted the importance of maintaining strong relationships with lenders and the competitive dynamics in the borrowing market [51][52] Other Important Information - The company has executed a $1 billion reinvesting CLO, enhancing its capital structure and providing flexibility for future investments [17][26] - The company has seen a shift towards less transitional and more resilient investment strategies due to rising construction costs and market volatility [66] Q&A Session Summary Question: About the migration of loans rated four to three - Management indicated that the focus is on non-modified four-rated office loans, which have decreased significantly from $1 billion to around $500 million [33][34] Question: Impact of the new CLO on originations - Management confirmed that the new CLO provides optionality for financing new originations, with strong liquidity and capital markets access [36][37] Question: Growth potential of the loan book - Management expects to grow the portfolio towards the $20 billion target, with $2 billion in loans currently closing [44] Question: Trends in the repo market and relationships with lenders - Management noted strong relationships with lenders, with banks eager to grow their credit facility exposure [51][52] Question: Performance of hospitality, multifamily, and industrial sectors - Management highlighted that hospitality exposure is down to 6.5% of the portfolio, while multifamily performance remains resilient, and industrial sectors are also showing strength [56][59] Question: Changes in borrower profiles post-tariff announcements - Management observed a shift towards lighter value-add business plans and shorter duration risks due to cost pressures [66] Question: Future CLO issuance - Management indicated that the CLO market is stabilizing, and they are monitoring opportunities for future issuances [81][84] Question: Context around the general reserve increase - Management clarified that the general reserve increase reflects long-term credit risk profiles and is not meant to capture short-term volatility [91] Question: Size of recent loan resolutions - Management mentioned that recent resolutions total around $200 million, with a focus on maximizing value over time for REO assets [93][96]

Company Overview - Blackstone Mortgage Trust (BXMT) focuses on real estate credit investments in North America, Europe, and Australia[3] - BXMT is managed by Blackstone, the largest owner of commercial real estate globally with $602 billion of Total Enterprise Value (TEV)[3] - Blackstone has $1.2 trillion assets under management[9] Portfolio and Investment Activity - BXMT has closed or is in the process of closing over $3.5 billion in loans in 2025 to date, primarily in multifamily or cross-collateralized industrial and self-storage portfolios[7] - In Q1 2025, BXMT received $1.8 billion in repayments, including $1.6 billion from office loans[7] - The portfolio performance improved to 95% in Q1 2025[7] - BXMT originated $1.6 billion across 14 loans in Q1 2025, with another $2.0 billion closed or in closing post quarter-end[73] Balance Sheet and Capitalization - BXMT issued $1.0 billion CRE CLO in Q1 2025[7] - BXMT has $1.6 billion in quarter-end liquidity[71] - The company's debt-to-equity ratio is 3.4x[71] Financial Performance - Q1 GAAP EPS was $(0.00), and Distributable EPS was $0.17[72] - Distributable EPS prior to charge-offs was $0.42[72] - Book value per share is $21.42, incorporating $4.39 per share of CECL reserves[73]