Blackstone Mortgage Trust Q4 Earnings Call Highlights

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]