Blackstone Mortgage Trust (NYSE:BXMT) Announces Earnings Results

Blackstone Mortgage Trust (NYSE:BXMT) issued its quarterly earnings results on Thursday. The real estate investment trust reported $0.38 earnings per share for the quarter, topping analysts’ consensus estimates of $0.24 by $0.14, FiscalAI reports. The company had revenue of $141.90 million for the quarter, compared to the consensus estimate of $148.60 million. Blackstone Mortgage Trust had a net margin of 1.57% and a return on equity of 7.72%.

Here are the key takeaways from Blackstone Mortgage Trust’s conference call:

• Book value fell 12% to $17.06 per share, driven primarily by $1.59 per share of higher CECL reserves, impairments to owned real estate, and valuation adjustments on loans held for sale. The company reported a GAAP loss of $1.95 per share.
• Management reduced the quarterly dividend from $0.47 to $0.30 per share, citing expected earnings pressure from portfolio runoff, impaired loans, and lower-yielding owned real estate, although it expects to cover the new dividend through 2027.
• BXMT sold nearly $1 billion of loans at an average price of approximately $0.93 on the dollar and collected $2.3 billion of repayments, reducing its watchlist by nearly 60% to the lowest level since 2019. Management believes most legacy office-related credit deterioration is now reflected in book value.
• The company reported $1.3 billion of liquidity, with 89% of debt represented by non-mark-to-market borrowings and no corporate debt maturities after largely pre-funding its 2027 obligations until 2029. It also has $110 million of remaining share-repurchase authorization and bought back $36 million of stock during the quarter.
• BXMT is increasing portfolio diversification, with post-2023 loans and newer net lease, bank loan, and homebuilder finance strategies representing a larger share of investments. These newer strategies now comprise nearly 10% of the portfolio, while average investment size has declined to $18 million from more than $130 million several years ago.

Blackstone Mortgage Trust Price Performance

Shares of NYSE:BXMT traded down $0.04 on Friday, hitting $10.82. The company’s stock had a trading volume of 440,932 shares, compared to its average volume of 1,922,403. The company has a market capitalization of $1.82 billion, a PE ratio of 120.49, a PEG ratio of 0.24 and a beta of 0.92. The company has a 50-day simple moving average of $12.31 and a 200 day simple moving average of $16.75. Blackstone Mortgage Trust has a 1 year low of $10.11 and a 1 year high of $20.67.

Blackstone Mortgage Trust Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 11.1%. The ex-dividend date of this dividend is Thursday, December 31st. This is a decrease from Blackstone Mortgage Trust’s previous quarterly dividend of $0.47. Blackstone Mortgage Trust’s payout ratio is 2,088.89%.

Key Stories Impacting Blackstone Mortgage Trust

Here are the key news stories impacting Blackstone Mortgage Trust this week:

• Positive Sentiment: BXMT reported quarterly earnings of approximately $0.38–$0.42 per share, ahead of consensus estimates near $0.24–$0.26 and above the $0.24 reported a year earlier. The earnings beat is the primary factor supporting investor interest. Blackstone Mortgage Trust Beats Q3 Earnings Estimates
• Positive Sentiment: Management’s reported reduction of older office-loan exposure may reassure investors that BXMT is actively addressing troubled commercial real estate assets and reducing future credit risk. Blackstone Mortgage Trust Reports Loss as It Cuts Older Office Loans
• Neutral Sentiment: Third-quarter revenue was $141.9 million, below the $148.6 million analyst consensus. Profitability metrics included a 7.72% return on equity and a 1.57% net margin, providing a mixed operating picture. Blackstone Mortgage Trust Third-Quarter Results
• Negative Sentiment: BXMT recorded an unexpected third-quarter net loss of $327.6 million, highlighting continuing stress in its commercial real estate loan portfolio and offsetting some of the adjusted earnings strength. Blackstone Mortgage Trust Reports Unexpected Q3 Net Loss
• Negative Sentiment: The quarterly dividend was cut to $0.30 per share from $0.47, a reduction of roughly 36%, despite an annualized yield of about 11%. The lower payout may pressure income-oriented investors and signals management’s caution about cash generation and credit losses. Blackstone Mortgage Trust Dividend Announcement

Insider Activity at Blackstone Mortgage Trust

In related news, Director Henry Nassau acquired 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 4th. The shares were bought at an average cost of $14.34 per share, for a total transaction of $143,400.00. Following the completion of the transaction, the director owned 218,523 shares in the company, valued at approximately $3,133,619.82. This trade represents a 4.80% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders sold a total of 3,716 shares of company stock worth $46,815 over the last ninety days. 1.18% of the stock is currently owned by insiders.

Analyst Ratings Changes

BXMT has been the topic of a number of recent research reports. Wall Street Zen cut Blackstone Mortgage Trust from a “hold” rating to a “sell” rating in a research report on Saturday, August 1st. Raymond James Financial downgraded shares of Blackstone Mortgage Trust from an “outperform” rating to a “market perform” rating in a report on Thursday, August 6th. Keefe, Bruyette & Woods lowered their target price on shares of Blackstone Mortgage Trust from $13.00 to $12.00 and set a “market perform” rating on the stock in a report on Friday. Weiss Ratings reiterated a “sell (d)” rating on shares of Blackstone Mortgage Trust in a research report on Thursday. Finally, Wells Fargo & Company decreased their price objective on Blackstone Mortgage Trust from $22.00 to $18.00 and set an “overweight” rating on the stock in a research note on Monday, August 3rd. Four investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $18.40.

Blackstone Mortgage Trust Company Profile

Blackstone Mortgage Trust, Inc is a real estate investment trust that originates and manages senior loans secured by commercial properties. The company primarily provides floating-rate mortgage financing to owners and sponsors of institutional-quality real estate, earning income from interest and other fees associated with its lending activities.

Its loan portfolio has historically included properties across sectors such as office, multifamily, hotel, industrial, retail and life sciences.