Blackstone Mortgage Trust(BXMT) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION 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 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][220] Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) 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][310][314] - Total liquidity as of June 30, 2025, was $1.1 billion, consisting of cash, available borrowings, and net receivables from servicers[385] - 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][327] Quantitative and Qualitative Disclosures About Market Risk 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] 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] - Currency risk is managed by matching asset and liability currencies and hedging substantially all net asset exposure to foreign currencies with forward contracts[452][453] Controls and Procedures 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] - 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] PART II. OTHER INFORMATION This section provides information on legal proceedings, risk factors, unregistered sales of equity securities, defaults upon senior securities, and exhibits Legal Proceedings 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] Risk Factors 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] Unregistered Sales of Equity Securities and Use of Proceeds 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] Defaults Upon Senior Securities The company reported no defaults upon its senior securities during the period - None[462] Exhibits 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]