Blackstone Mortgage: Too Much Uncertainty

izusek Dear readers, Mortgage REITs (mREITs) are lenders that lend money to real estate projects in exchange for interest on the loan. The loans are secured by real estate, which makes the business model sound safe, but the spread that most mREITs earn above their cost of capital is quite tight, which makes their earnings volatile. Moreover, mREITs are often heavily leveraged, think 3-4x leverage. It is a sector which is known for its high dividends, which appeal to many income investors. Unfortunately, ...