Gary Yeowell Thesis Blackstone Mortgage Trust (NYSE:BXMT) is a real estate finance company that originates senior loans collateralized by commercial properties in North America, Europe, and Australia. The REIT is one of the largest in the space, alongside Starwood Property Trust (STWD), and has been hit hard by the current downturn in North American CRE. In this article, we are going to have a closer look at the REIT's latest results and our view on its path forward. BXMT is a type of lending institution, n ...

kmaassrock/E+ via Getty Images Blackstone Inc. (BX) is a giant in the real estate market. We doubt that’s breaking news to most. The company, which currently has a market cap of $173 billion, is the owner of BREIT, its real estate investment vehicle. BREIT is 3x larger than the next five largest non-traded REITs combined! According to the company’s 2Q24 earnings, this investment vehicle has generated a cumulative return of 10% in its largest share class since early 2022 and a return of more than 10% ann ...

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Richard Drury As I suspected months ago, Blackstone Mortgage Trust, Inc. (NYSE:BXMT) finally decided to cut its dividend amid continual problems in its loan portfolio. Blackstone Mortgage suffered a further decline in its performing loan percentage in the second quarter and chose to respond to the resulting deterioration of its portfolio quality by cutting its dividend by 24%. The move will save the company some cash, approximately $100M annually, and the distribution coverage metrics are set to improve as ...

Core Viewpoint - Blackstone Mortgage Trust, Inc. (BXMT) has faced significant challenges, leading to a downgrade to "Sell" due to poor financial performance and a distribution cut, indicating a lack of stability and potential risks for investors [2][3][16]. Financial Performance - The distributable EPS for Q2 2024 was reported at 49 cents per share, down from the previous distribution of 62 cents, highlighting a significant decline in earnings [3][10]. - GAAP EPS was negative 35 cents, indicating further financial distress and additional charge-offs related to current expected credit losses (CECL) [3][10]. - Interest income has peaked, and the company is likely to face more challenges with potential Federal Reserve rate cuts on the horizon [4][5]. Distribution and Coverage - The new distribution is barely covered by the distributable EPS, raising concerns about the sustainability of future distributions [4][5]. - The loan-to-value (LTV) ratio stands at 63%, but this figure does not provide adequate stability due to significant declines in asset values, particularly in the office sector [5][6]. Balance Sheet and Leverage - BXMT's liabilities exceed total equity by over 4.5 times, with total liabilities amounting to $18.6 billion, despite a $1 billion reduction over the past year [7][9]. - The CECL reserves total $5.21 per share, which is considered minor in the context of the company's overall financial health [6][9]. Market Outlook - The office sector has seen value declines of 40%-60%, suggesting that much of BXMT's portfolio may be underwater, which is not fully reflected in the current financial statements [6][11]. - The company is expected to face significant refinancing challenges ahead, particularly as many loans are currently at low interest rates [15][16]. Investment Recommendation - The current financial metrics and market conditions suggest that BXMT is not a viable investment opportunity, with a recommendation to sell until the stock price drops below $12.00 per share [16].

NoDerog Introduction If you ever played Monopoly, you probably know there's a point in the game where you know it's game over. Once someone has bought enough hotels, it's over for the others. The moment someone has enough cash flow, they become invincible, capable of withstanding any "rent" charges, and able to buy any property that's for sale. Although the real world is very different from the Monopoly game, it feels like the Blackstone Inc. (NYSE:BX) figured out how to get ahead many years ago, as it ...

Loading...Loading...Blackstone Inc BX reported an increase in earnings for its second quarter fiscal year 2024 on Thursday.The company posted adjusted revenues of $2.796 billion, beating the consensus of $2.619 billion. Distributable earnings per share of 96 cents (+3% Y/Y), missing the consensus of 98 cents, according to data from Benzinga Pro.Asset under management rose 7% Y/Y to $1.076 trillion, with inflows of $39.4 billion in the quarter.Blackstone declared a quarterly dividend per share of $0.82, paya ...

Financial Data and Key Metrics Changes - The company reported GAAP net income of $948 million for Q2 2024, with distributable earnings of $1.3 billion or $0.96 per common share, and declared a dividend of $0.82 [6][31] - Total AUM increased by 7% year-over-year to $1.1 trillion, with inflows of $39 billion in the quarter and $151 billion over the last 12 months [31] - Fee-related earnings (FRE) were $1.3 billion in Q2, up 3% year-over-year, marking the 11th consecutive quarter of FRE over $1 billion [33] Business Line Data and Key Metrics Changes - The credit and insurance business had a busy quarter with $21 billion invested or committed, including global direct lending and infrastructure [20] - In private equity, new commitments included acquisitions in Japan, the UK, and India, with a total deployment of $34 billion in Q2, up 73% year-over-year [20][31] - Real estate saw nearly $15 billion deployed in the first half of the year, approximately 2.5 times the same period last year, with a focus on logistics, rental housing, and data centers [21][22] Market Data and Key Metrics Changes - The company noted a significant decline in new construction starts, down 40% to 70% year-over-year across various asset classes, which is expected to positively impact long-term values [16][22] - The office sector remains under pressure, with vacancy rates in the mid-20s, while logistics and rental housing maintain lower vacancy rates of 5% to 6% [22][72] Company Strategy and Development Direction - The company is positioning itself as a leading financial investor in AI infrastructure, with expectations of $1 trillion in capital expenditures in the U.S. over the next five years for data centers [12][14] - Blackstone plans to launch several new products in the private wealth channel and expand its infrastructure platform globally [18][24] - The firm aims to leverage its scale and expertise in credit and insurance to capitalize on the growing demand for private credit strategies [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a favorable environment for investment, anticipating a significant realization cycle as interest rates decline [7][38] - The firm expects a material step-up in FRE in Q4 2024, driven by the exit of fee holidays for several flagship funds and scheduled crystallization events [39][40] - Management highlighted the importance of long-term trends in digitalization, life sciences, and energy transition as key drivers of future value [58] Other Important Information - The company has a robust ongoing dialogue with major data center customers and is actively providing capital to AI-related companies [13][14] - The firm has raised over $8 billion for its latest opportunistic European fund and $5 billion for its latest real estate debt fund, indicating strong momentum in private wealth [23][47] Q&A Session Summary Question: Insights on investment activity and future deployment - Management noted positive signs in investment activity, with $19 billion committed at the end of the quarter and increased transaction activity across equity strategies [42][44] Question: Outlook for real estate fundraising - Management acknowledged investor caution in real estate but indicated improved sentiment and potential for significant capital inflows as performance differentiates [46][48] Question: Update on bank partnerships and asset-backed finance - Management highlighted a growing interest in asset-backed finance, with significant opportunities in the market and ongoing partnerships with banks [51][53] Question: Impact of the upcoming U.S. election on deployment - Management emphasized that economic factors, particularly inflation, will be more critical than the election outcome in determining market performance [56][58] Question: FRE margin outlook for 2025 - Management expects stability in FRE margins in the near term, with potential for operating leverage and growth as funds exit fee holidays [60][62] Question: Update on the secondary business and fundraising confidence - Management expressed confidence in the secondary business due to structural inefficiencies and strong historical returns, anticipating larger fundraising for the next vintage [66][68]

Blackstone’s (BX) second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure reflects a decline of 3.2% from the prior-year quarter.Shares of the company lost 1.5% in the pre-market trading. However, a full day’s trading session will depict a clearer picture.Results were primarily hurt by an increase in GAAP expenses. Nevertheless, a rise in segment revenues and improvement in the assets under management (AUM) balance were tailwinds.Net incom ...

Blackstone Inc. (BX) came out with quarterly earnings of $0.96 per share, missing the Zacks Consensus Estimate of $0.99 per share. This compares to earnings of $0.93 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -3.03%. A quarter ago, it was expected that this investment manager would post earnings of $0.98 per share when it actually produced earnings of $0.98, delivering no surprise.Over the last four quarters, the company ...