Core Viewpoint - Blackstone Mortgage Trust (BXMT) has focused on reducing its office loan portfolio over the past two years, which has negatively impacted the REIT's financial performance [1] Group 1 - BXMT has worked diligently to decrease the size of its office loan portfolio [1] - The impaired loans have adversely affected BXMT's financial performance [1]

With the S&P 500 down year-to-date after three consecutive years of strong gains, investors are rotating out of expensive megacaps into smaller value stocks. Against this backdrop, shares in Blackstone Mortgage Trust, Inc. (I ventured into investing in high school in 2011, mainly in REITs, preferred stocks, and high-yield bonds, starting a fascination with markets and the economy that has not faded despite the years. More recently I have been combining long stock positions with covered calls and cash secure ...

Core Viewpoint - Blackstone Mortgage Trust (BXMT) is providing a well-covered near double-digit dividend yield from a diversified global commercial real estate credit portfolio, demonstrating strength in both revenue and distributable earnings [1] Group 1: Company Overview - BXMT is characterized by its aggressive diversification in the global commercial real estate credit market [1] - The company is significant in size, indicating a robust presence in the market [1] Group 2: Investment Strategy - Pacifica Yield focuses on long-term wealth creation by targeting undervalued yet high-growth companies, high-dividend stocks, REITs, and green energy firms [1]

Core Insights - The article emphasizes a strategy that combines technical analysis with the CAN SLIM method to identify high-growth, underanalyzed micro-cap companies [1] - The focus is on financial trends, profit growth, and institutional capital accumulation to uncover stocks with significant upside potential [1] - The research approach integrates both fundamental and technical analysis, allowing for the identification of strong growth stocks before they gain widespread attention [1] Financial Trends - Key indicators prioritized include relative strength, trading volume shifts, and accelerating profit growth, which help pinpoint stocks with the highest potential [1] - The integration of Forex trading experience aids in understanding price movements, market volatility, and sentiment-driven trends [1] Research and Analysis - Writing for Seeking Alpha is described as an integral part of the investment process, allowing for the refinement of strategies and testing of investment theses [1] - The aim is to deliver in-depth company analyses focusing on stocks with strong growth trends, improving fundamentals, and technical setups that signal potential breakouts [1] Market Engagement - The structured research approach is intended to enhance market understanding and provide actionable investment insights [1]

Core Insights - The article emphasizes a strategy that combines technical analysis with the CAN SLIM method to identify high-growth, underanalyzed companies in the micro-cap market [1] Group 1: Investment Strategy - The focus is on financial trends, profit growth, and institutional capital accumulation to uncover stocks with significant upside potential [1] - Key indicators prioritized include relative strength, trading volume shifts, and accelerating profit growth, which help in identifying stocks with the highest potential [1] Group 2: Research Approach - The research approach integrates both fundamental and technical analysis, allowing for the identification of strong growth stocks before they gain widespread attention [1] - Writing for Seeking Alpha is described as an integral part of the investment process, enabling refinement of strategies and engagement with the investor community [1] Group 3: Analysis Focus - The articles aim to deliver in-depth company analyses, focusing on stocks with strong growth trends, improving fundamentals, and technical setups that signal potential breakouts [1] - Structured research is emphasized to enhance market understanding and provide actionable investment insights [1]

Core Insights - The company reported a strong loan portfolio performance, ending the year with 99% of loans performing and resolving $575 million of impaired loans, reducing the impaired loan balance to just under $90 million [1][6] - Distributable earnings (DE) prior to charge-offs were $0.51 per share, covering the $0.47 quarterly dividend for the second consecutive quarter [2][7] - The company is shifting its investment strategy towards multifamily, industrial, and net-lease assets, closing $1.5 billion in Q4 and approximately $7 billion for the full year 2025 [5][9] Financial Performance - For Q4, the company reported GAAP net income of $0.24 per share, while DE was -$2.07 per share due to $434 million in reserve charge-offs [3][7] - The investment portfolio totaled $20 billion at year-end, up from $19.5 billion in the prior quarter [10] - Book value ended the year at $20.75 per share, which includes $0.47 per share of accumulated depreciation and $1.76 per share of total CECL reserves [15] Investment Strategy - The company closed $1.5 billion in investments in Q4, with 100% of loan originations secured by multifamily and industrial assets [8] - For the full year 2025, nearly 85% of closed investments were allocated to multifamily and industrial loans, as well as net lease strategies [9] - The net lease portfolio ended the year at over $300 million, focusing on essential-use retail with strong rent coverage and long lease terms [11] Funding and Liquidity - The company executed over $5 billion in debt transactions over the past year, ending with $1 billion of liquidity and no debt maturities until 2027 [17] - It priced a $1 billion CLO in January and completed its first European CMBS issuance in December [18] - The company continued share repurchases, totaling $60 million in the quarter and about $140 million since the program began [20] Leadership Changes - The company announced a transition in its CFO position, with Marcin Urbaszek set to take over from Tony Marone [21]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.24 per share, while distributable earnings were -$2.07 per share, with distributable earnings prior to charge-offs at -$0.51 per share [4][20] - The distributable earnings prior to charge-offs increased over 20% from Q1, covering the dividend for the second consecutive quarter [5] - The book value ended the year at $20.75 per share, which includes $0.47 per share of accumulated depreciation and amortization [23] Business Line Data and Key Metrics Changes - The loan portfolio is now 99% performing, with $575 million of impaired loans resolved during the quarter, reducing the impaired loan balance to just under $90 million [5][14] - The investment portfolio stands at $20 billion, up from $19.5 billion last quarter, with the loan portfolio at $18 billion and net lease assets now representing 5% of the portfolio [13] - In Q4, the company closed $1.5 billion of investments, including $1.4 billion of new loan originations, all secured by multifamily and industrial assets [11] Market Data and Key Metrics Changes - The real estate credit market is highly liquid, with CMBS issuance accelerating to its highest level since the GFC, up 40% year-over-year [6] - New loan requests in January were up 50% from the prior year, indicating increased enthusiasm from investors [7] - Nearly half of the loans are located in international markets, with almost 40% in Europe, where strong demand is driven by limited new supply [16] Company Strategy and Development Direction - The company has strategically broadened its scope to target complementary investment channels, focusing on multifamily and industrial loans [5] - The strategy remains focused on essential-use retail with attractive credit characteristics, with a net lease portfolio scaling to over $300 million [17] - The company aims to maximize long-term shareholder value while remaining patient and disciplined in capital deployment [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong investment and asset management results achieved in 2025, with a positive outlook for the coming year [19] - The company anticipates cash flows from owned real estate to decline in Q1 but expects consistent positive distributable earnings over time [22] - Management noted that the current dividend yield of 9.5% implies a compelling relative value proposition for the stock [10] Other Important Information - The company executed over $5 billion of corporate and securitized debt transactions in the past 12 months, reducing the weighted average borrowing spread by nearly 90 basis points [8] - The total CECL reserve declined nearly 60% quarter-over-quarter due to reserve charge-offs, which had a minimal impact on book value [23][24] - The company has been active in share repurchases, with approximately $140 million since the program's inception in July 2024 [10] Q&A Session Summary Question: Thoughts on supporting the value of loans in the portfolio - Management is exploring all opportunities to maximize shareholder value and feels good about the stock's direction given 2025's performance [29][30] Question: Views on the REO portfolio and specific assets - Management sees improved fundamentals and investor demand in key markets like New York and is strategically considering exits for several assets [33][35] Question: Investment in the Blackstone BREDS Fund - The fund will focus on high-quality core-plus real estate in the U.S. and Canada, with no fees for the fund commitment [39][40] Question: Future portfolio outlook and diversification strategy - The company intends to continue diversifying its portfolio while maintaining its core lending strategy [41][42] Question: Multifamily lending opportunities - The company views multifamily as a structurally undersupplied market and is actively lending in this space [46] Question: Initial general reserve on new loans - The current general reserve is a good proxy for the majority of the portfolio, and as the portfolio grows or shrinks, this will be a reference point [53] Question: Impaired loan resolutions and market conditions - The resolution of impaired loans was aided by the strength of the asset management team and improved market liquidity [56][58] Question: Target allocation for multifamily and industrial properties - The company prioritizes finding the right investments with the best risk-adjusted returns, focusing on diversifying across sectors and geographies [59][60] Question: Cost of capital between CLOs and bank facilities - The company aims for a well-structured, diversified balance sheet and has reduced corporate term loan borrowing spreads significantly [67][68]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.24 per share, while distributable earnings were -$2.07 per share, with distributable earnings prior to charge-offs at $0.51 per share, marking an increase of over 20% from Q1 [4][20] - The book value ended the year at $20.75 per share, which includes $0.47 per share of accumulated depreciation and amortization [23] Business Line Data and Key Metrics Changes - The loan portfolio is now 99% performing, with $575 million of impaired loans resolved during the quarter, reducing the impaired loan balance to just under $90 million [5][14] - The investment portfolio stands at $20 billion, up from $19.5 billion last quarter, with the loan portfolio at $18 billion and net lease assets now representing 5% of the portfolio, up from 0 at the beginning of 2025 [13][14] Market Data and Key Metrics Changes - The real estate credit market is highly liquid, with CMBS issuance accelerating to its highest level since the GFC, up 40% year-over-year [6] - New loan requests in January were up 50% from the prior year, indicating increased enthusiasm from investors to transact [7] Company Strategy and Development Direction - The company has strategically broadened its scope to target complementary investment channels, focusing on multifamily and industrial loans, which accounted for nearly 85% of the $7 billion in investments closed in 2025 [5] - The company aims to maximize long-term shareholder value while remaining patient and disciplined in its approach [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong investment and asset management results achieved in 2025 and sees a ripe environment for bank consolidation, which may bring additional opportunities [18][19] - The company anticipates cash flows from owned real estate to decline in Q1 but expects consistent positive distributable earnings over time as assets are exited and capital is redeployed [22] Other Important Information - The company executed over $5 billion of corporate and securitized debt transactions in the past 12 months, reducing the weighted average borrowing spread by nearly 90 basis points year-over-year [8][9] - The company has been active in share repurchases, with approximately $140 million since the program's inception in July 2024 [10] Q&A Session Summary Question: Thoughts on supporting the value of loans in the portfolio - Management is exploring all opportunities to maximize shareholder value and feels good about the stock's direction given the performance in 2025 [29][30] Question: Views on the REO portfolio and specific assets - Management sees improved fundamentals and investor demand in key markets like New York and is strategically considering exits for several assets [33][35] Question: Investment in the Blackstone BREDS Fund - The fund will focus on high-quality core-plus real estate in the U.S. and Canada, with no fees for the fund commitment [39][40] Question: Future portfolio outlook and focus areas - The company intends to diversify its portfolio while maintaining its core lending strategy, with a focus on risk-adjusted returns [41][42] Question: Multifamily lending opportunities - The company views multifamily as a structurally undersupplied market and is actively lending in this space [46] Question: Initial general reserve on new loans - The current general reserve is a good proxy for the majority of the portfolio, and as the portfolio grows or shrinks, this will be a reference point [53]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported GAAP net income of $0.24 per share, while distributable earnings (DE) were -$2.07 per share, with DE prior to charge-offs at -$0.51 per share, reflecting a 20% increase from Q1 [3][19] - The company paid a dividend of -$0.47 per share for Q4, with DE prior to charge-offs covering the dividend for the second consecutive quarter [4][20] - Book value ended the year at $20.75 per share, which includes $0.47 per share of accumulated depreciation and amortization [21] Business Line Data and Key Metrics Changes - The loan portfolio is now 99% performing, with $575 million of impaired loans resolved during the quarter, reducing the impaired loan balance to just under $90 million [4][12] - The investment portfolio increased to $20 billion, up from $19.5 billion, with the loan portfolio at $18 billion and net lease assets now representing 5% of the portfolio [12][20] - In Q4, the company closed $1.5 billion of investments, including $1.4 billion of new loan originations, all secured by multifamily and industrial assets [10][11] Market Data and Key Metrics Changes - The real estate credit market is highly liquid, with CMBS issuance up 40% year-over-year, indicating increased debt capital availability [5] - New loan requests in January were up 50% from the prior year, reflecting heightened investor enthusiasm [5] - Nearly half of the company's loans are located in international markets, with approximately 40% in Europe, where strong fundamentals are driving demand [14][15] Company Strategy and Development Direction - The company is focusing on diversifying its investment channels, targeting multifamily and industrial loans, and expanding its net lease strategy [4][6] - The strategy includes selectively exiting owned real estate properties to redeploy capital into core investments, aiming to maximize long-term shareholder value [8][16] - The company has been active in share repurchases, with $140 million since the program's inception, indicating confidence in the stock's value [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's performance in 2025, highlighting a strong case for additional upside in the stock as it trades below book value [8][9] - The company anticipates continued positive trends in the real estate market, with expectations for further loan resolutions and capital redeployment [19][50] - Management noted that the current liquidity in the market is beneficial for quicker resolutions of impaired loans, contributing to a stabilized real estate market [56] Other Important Information - The company has a strong balance sheet with $1 billion of liquidity and no debt maturities until 2027 [24][25] - The company has been proactive in accessing various capital markets, executing over $5 billion in transactions in the past year [6][68] - The transition of CFO roles was noted, with Marcin Urbaszek stepping into the position, indicating continuity in leadership [10][25] Q&A Session Summary Question: Thoughts on supporting the value of loans in the portfolio - Management is exploring all opportunities to maximize shareholder value and feels confident about the stock's direction [28] Question: Views on the REO portfolio and specific assets - Management sees improved fundamentals and investor demand in key markets like New York, with potential for exiting assets strategically [31][33] Question: Investment in the Blackstone BREDS Fund - The fund will focus on high-quality core-plus real estate in the U.S. and Canada, with no fees for the fund commitment [37] Question: Future portfolio outlook and focus areas - The company intends to diversify its portfolio while maintaining its core lending strategy, with a focus on risk-adjusted returns [40] Question: Multifamily lending opportunities - Management is optimistic about the multifamily sector, citing structural undersupply and strong performance in their portfolio [44] Question: Timeline for resolving loans and redeploying capital - Management expects to exit certain assets over the year, with a focus on redeploying capital at target returns [50] Question: Impaired loan resolutions and market conditions - The resolution of impaired loans was attributed to the strength of the asset management team and improved market liquidity [56]

Blackstone Mortgage Trust, Inc. Q4 2025 Company Presentation FEBRUARY 2026 Blackstone Mortgage Trust, Inc. BLACKSTONE MORTGAGE TRUST OVERVIEW Blackstone Mortgage Trust (BXMT) is a publicly traded commercial mortgage REIT focused on real estate credit investments in North America, Europe, and Australia | B | X | M | T | i | d | b | B | l | k | h | l | f | i | l | l | t | t | t |  | g | g | s | m | a | n | a | e | y | a | c | s | o | n | e, | e | a | r | e | s | o | w | n | e | r | o | c | o | m | m | e | r ...