Blackstone Mortgage Trust (NYSE: BXMT) posts Q1 2026 loss on credit costs
Blackstone Mortgage Trust reported a small net loss for the three months ended March 31, 2026 as credit costs and real estate expenses offset interest income.
Total assets were $19,629,808 thousand, including $17,266,346 thousand of loans receivable, net, and $1,149,085 thousand of owned real estate, net. Cash and cash equivalents were $549,153 thousand.
The loan portfolio comprised 130 loans with $17,639,430 thousand principal and $16,366,484 thousand of net loan exposure, diversified across multifamily, office, industrial, and hospitality assets in the U.S. and internationally. The current expected credit loss reserve on loans rose to $291,590 thousand, driven by new originations and additional asset‑specific reserves, partly offset by charge‑offs tied to a foreclosed hospitality property now recorded as owned real estate.
Owned real estate generated $74,594 thousand of revenue and a $7,381 thousand loss, while operating activities provided $169,727 thousand of cash. The company continued to use securitized and secured debt, asset‑specific debt, term loans, and notes to finance its portfolio.
Positive
- None.
Negative
- None.
Insights
Results show modest loss but stable loan credit profile with targeted workouts.
Blackstone Mortgage Trust produced a net loss of $6,340 thousand for the quarter, mainly as owned real estate and credit costs outweighed interest income. Total loans receivable, net, were $17,266,346 thousand with a weighted‑average risk rating of 3.0, indicating a broadly medium‑risk book.
The CECL reserve on loans increased to $291,590 thousand, including an $84,925 thousand component for impaired loans. Management charged off $46,451 thousand of reserves when it foreclosed on a San Francisco hospitality asset, now carried as owned real estate at $41,082 thousand, which crystallized prior expected losses.
Four office and life sciences/studio loans were modified under ASC 326, with term extensions, rate reductions, and bifurcation into senior and subordinate pieces. Senior tranches now carry risk ratings of 3–4, while the subordinate pieces are rated 5, concentrating loss risk there. Future filings may show how these restructurings and the growing owned real estate platform affect earnings and credit costs over subsequent quarters.
Key Figures
Total assets: $19,629,808 thousand
Loans receivable, net: $17,266,346 thousand
Net loss: $6,340 thousand
+5 more
8 metrics
Total assets
$19,629,808 thousand
As of March 31, 2026 consolidated balance sheet
Loans receivable, net
$17,266,346 thousand
As of March 31, 2026 after CECL reserve
Net loss
$6,340 thousand
Three months ended March 31, 2026
CECL reserve on loans
$291,590 thousand
Loans receivable current expected credit loss reserve at March 31, 2026
Cash from operating activities
$169,727 thousand
Net cash provided by operating activities, Q1 2026
Loan portfolio principal balance
$17,639,430 thousand
Total loans receivable principal as of March 31, 2026
Owned real estate revenue
$74,594 thousand
Revenue from owned real estate, Q1 2026
Owned real estate, net
$1,149,085 thousand
Net carrying amount of owned real estate at March 31, 2026
Key Terms
Current expected credit loss reserve, Weighted-Average Remaining Maturity (WARM) method, Variable interest entities, Asset-specific debt, +2 more
6 terms
Current expected credit loss reserve financial
"The current expected credit loss, or CECL, reserve required under the Financial Accounting Standards Board..."
A current expected credit loss reserve is the amount a lender sets aside today to cover loans and other credit exposures it reasonably expects will go bad in the future, based on current information and forecasts. Investors care because a larger reserve reduces reported profits and capital available for dividends or growth, while a smaller reserve can signal greater short-term earnings but higher future credit risk—much like saving for anticipated repairs to avoid surprise expenses.
Weighted-Average Remaining Maturity (WARM) method financial
"We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method..."
Variable interest entities financial
"We consolidate all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors..."
A variable interest entity (VIE) is a business that a company controls through contracts or special arrangements instead of owning a majority of its shares, like steering a puppet without holding its ticket. Investors care because these arrangements can hide who really bears the financial risks and rewards, affect how assets and liabilities appear on financial statements, and create extra legal or enforcement uncertainty that can change the value and risk of an investment.
Asset-specific debt financial
"Asset-specific debt, net | $ 959,352 | $ 997,746"
Net Lease Joint Venture financial
"In 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in triple net lease properties, which we refer to as our Net Lease Joint Venture."
Fair value option (FVO) financial
"We have elected the FVO for one of our investments in an unconsolidated entity, our Bank Loan Portfolio Joint Venture..."
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FAQ
How did Blackstone Mortgage Trust (BXMT) perform for the quarter ended March 31, 2026?
Blackstone Mortgage Trust recorded a modest net loss of $6,340 thousand for the quarter. Interest income from its large commercial real estate loan portfolio was offset by credit loss provisions and losses from owned real estate operations, producing a small per‑share loss.
What is the size and composition of BXMT’s loan portfolio as of March 31, 2026?
BXMT held 130 loans with principal of $17,639,430 thousand and net loan exposure of $16,366,484 thousand. The portfolio is diversified across multifamily, office, industrial, hospitality, and other property types in U.S. and international markets.
How large is Blackstone Mortgage Trust’s CECL reserve on loans?
The current expected credit loss reserve on loans was $291,590 thousand as of March 31, 2026. This includes both general reserves on performing loans and $84,925 thousand of asset‑specific reserves on seven impaired loans with $372,156 thousand of net book value.
What owned real estate does BXMT report and how is it performing?
BXMT reported owned real estate, net, of $1,149,085 thousand across 13 assets. These properties generated $74,594 thousand of revenue and a $7,381 thousand loss for the quarter, reflecting operating costs and depreciation on office, multifamily, and hospitality holdings.
How much cash flow did Blackstone Mortgage Trust generate from operations?
Net cash provided by operating activities was $169,727 thousand for the three months ended March 31, 2026. This figure reflects interest income, credit loss provisions, non‑cash charges, and working capital changes tied to loans, derivatives, and owned real estate operations.
What are BXMT’s key joint ventures and how are they accounted for?
BXMT holds interests in a Net Lease Joint Venture and a Bank Loan Portfolio Joint Venture. The net lease venture is accounted for under the equity method at historical cost, while the bank loan venture is recorded at fair value under the FVO, both reported within investments in unconsolidated entities.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
FOR THE TRANSITION PERIOD FROM ______ TO ______
Commission File Number: 001-14788
(Exact name of Registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices)(Zip Code)
(212 ) 655-0220
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading symbol(s) | Name of each exchange on which registered | |||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of
Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such
files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an
emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth
company” in Rule 12b-2 of the Exchange Act.
☒ | Accelerated filer | ☐ | ||
Non-accelerated filer | ☐ | Smaller reporting company | ||
Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new
or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
The number of the registrant’s shares of class A common stock, par value $0.01 per share, outstanding as of April 22, 2026 was 168,683,520
TABLE OF CONTENTS
Page | ||
PART I. | FINANCIAL INFORMATION | |
ITEM 1. | FINANCIAL STATEMENTS | 3 |
Consolidated Financial Statements (Unaudited): | ||
Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025 | 3 | |
Consolidated Statements of Operations for the Three Months Ended March 31, 2026 and 2025 | 4 | |
Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2026 and 2025 | 5 | |
Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2026 and 2025 | 6 | |
Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2026 and 2025 | 7 | |
Notes to Consolidated Financial Statements | 9 | |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | 58 |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK | 93 |
ITEM 4. | CONTROLS AND PROCEDURES | 95 |
PART II. | OTHER INFORMATION | |
ITEM 1. | LEGAL PROCEEDINGS | 96 |
ITEM 1A. | RISK FACTORS | 96 |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS | 97 |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES | 98 |
ITEM 4. | MINE SAFETY DISCLOSURES | 98 |
ITEM 5. | OTHER INFORMATION | 98 |
ITEM 6. | EXHIBITS | 99 |
SIGNATURES | 100 | |
TABLE OF CONTENTS
Website Disclosure
We use our website (www.blackstonemortgagetrust.com) as a channel of distribution of company information. The
information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in
addition to following our press releases, Securities and Exchange Commission, or SEC, filings and public conference calls,
and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone Mortgage
Trust when you enroll your email address by visiting the “Contact Us and Email Alerts” section of our website at
http://ir.blackstonemortgagetrust.com. The contents of our website and any alerts are not, however, a part of this report.
3
PART I.
ITEM 1. FINANCIAL STATEMENTS
Blackstone Mortgage Trust, Inc.
Consolidated Balance Sheets (Unaudited)
(in thousands, except share data)
March 31, 2026 | December 31, 2025 | ||
Assets | |||
Cash and cash equivalents | $ | $ | |
Loans receivable | |||
Current expected credit loss reserve | ( | ( | |
Loans receivable, net | |||
Owned real estate, net | |||
Investments in unconsolidated entities (includes $ value as of March 31, 2026 and December 31, 2025, respectively) | |||
Other assets | |||
Total Assets | $ | $ | |
Liabilities and Equity | |||
Secured debt, net | $ | $ | |
Securitized debt obligations, net | |||
Asset-specific debt, net | |||
Term loans, net | |||
Senior secured notes, net | |||
Convertible notes, net | |||
Other liabilities | |||
Total Liabilities | |||
Commitments and contingencies (Note 21) | |||
Equity | |||
Class A common stock, $ and December 31, 2025, respectively | |||
Additional paid-in capital | |||
Accumulated other comprehensive income | |||
Accumulated deficit | ( | ( | |
Total Blackstone Mortgage Trust, Inc. stockholders’ equity | |||
Non-controlling interests | |||
Total Equity | |||
Total Liabilities and Equity | $ | $ |
Note: The consolidated balance sheets as of March 31, 2026 and December 31, 2025 include assets of consolidated variable
interest entities, or VIEs, that can only be used to settle obligations of each respective VIE, and liabilities of consolidated
VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc. As of March 31, 2026 and December 31,
2025, assets of the consolidated VIEs totaled $4.1 billion and $3.3 billion, respectively, and liabilities of the consolidated
VIEs totaled $2.9 billion and $2.2 billion, respectively. Refer to Note 19 for further discussion of the VIEs.
See accompanying notes to consolidated financial statements.
4
Blackstone Mortgage Trust, Inc.
Consolidated Statements of Operations (Unaudited)
(in thousands, except share and per share data)
Three Months Ended March 31, | |||
2026 | 2025 | ||
Income from loans and other investments | |||
Interest and related income | $ | $ | |
Less: Interest and related expenses | |||
Income from loans and other investments, net | |||
Revenue from owned real estate | |||
Total net revenue | |||
Expenses | |||
Management and incentive fees | |||
General and administrative expenses | |||
Expenses from owned real estate | |||
Total expenses | |||
Increase in current expected credit loss reserve | ( | ( | |
Income (loss) from unconsolidated entities | ( | ||
Net loss on disposition of owned real estate | ( | ||
Other income, net | |||
(Loss) income before income taxes | ( | ||
Income tax provision | |||
Net loss | ( | ( | |
Net loss (income) attributable to non-controlling interests | ( | ||
Net loss attributable to Blackstone Mortgage Trust, Inc. | $( | $( | |
Net loss per share of common stock, basic and diluted | $( | $( | |
Weighted-average shares of common stock outstanding, basic and diluted | |||
See accompanying notes to consolidated financial statements.
5
Blackstone Mortgage Trust, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
(in thousands)
Three Months Ended March 31, | |||
2026 | 2025 | ||
Net loss | $( | $( | |
Other comprehensive (loss) income | |||
Unrealized (loss) gain on foreign currency translation | ( | ||
Realized and unrealized gain (loss) on derivative financial instruments | ( | ||
Unrealized loss on derivative financial instruments from unconsolidated entities | ( | ( | |
Other comprehensive (loss) income | ( | ||
Comprehensive loss | ( | ( | |
Comprehensive loss (income) attributable to non-controlling interests | ( | ||
Comprehensive loss attributable to Blackstone Mortgage Trust, Inc. | $( | $( | |
See accompanying notes to consolidated financial statements.
6
Blackstone Mortgage Trust, Inc.
Consolidated Statements of Changes in Equity (Unaudited)
(in thousands)
Blackstone Mortgage Trust, Inc. | |||||||||||||
Class A Common Stock | Additional Paid- In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Stockholders’ Equity | Non- Controlling Interests | Total Equity | |||||||
Balance at December 31, 2025 | $ | $ | $ | $( | $ | $ | $ | ||||||
Repurchases of class A common stock | ( | ( | — | — | ( | — | ( | ||||||
Restricted class A common stock earned | — | — | — | ||||||||||
Dividends reinvested | — | — | — | — | |||||||||
Deferred directors’ compensation | — | — | — | ||||||||||
Net loss | — | — | — | ( | ( | ( | ( | ||||||
Other comprehensive loss | — | — | ( | — | ( | — | ( | ||||||
Dividends declared on common stock and deferred stock units, $ | — | — | — | ( | ( | — | ( | ||||||
Distributions to non-controlling interests | — | — | — | — | — | ( | ( | ||||||
Balance at March 31, 2026 | $ | $ | $ | $( | $ | $ | $ | ||||||
Balance at December 31, 2024 | $ | $ | $ | $( | $ | $ | $ | ||||||
Shares of class A common stock issued, net | ( | — | — | — | — | ||||||||
Repurchases of class A common stock | ( | ( | — | — | ( | — | ( | ||||||
Restricted class A common stock earned | — | — | — | ||||||||||
Dividends reinvested | — | — | — | — | |||||||||
Deferred directors’ compensation | — | — | — | — | |||||||||
Net (loss) income | — | — | — | ( | ( | ( | |||||||
Other comprehensive income | — | — | — | — | |||||||||
Dividends declared on common stock and deferred stock units, $ | — | — | — | ( | ( | — | ( | ||||||
Distributions to non-controlling interests | — | — | — | — | — | ( | ( | ||||||
Balance at March 31, 2025 | $ | $ | $ | $( | $ | $ | $ | ||||||
See accompanying notes to consolidated financial statements.
7
Blackstone Mortgage Trust, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cash flows from operating activities | |||
Net loss | $( | $( | |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Non-cash compensation expense | |||
Amortization of deferred fees on loans | ( | ( | |
Amortization of deferred financing costs and premiums/discounts on debt obligations | |||
Payment-in-kind interest, net of interest received | ( | ( | |
Increase in current expected credit loss reserve | |||
Straight-line rental income | ( | ||
Depreciation and amortization of owned real estate | |||
Net loss on disposition of owned real estate | |||
(Income) loss from unconsolidated entities | ( | ||
Distributions of earnings from unconsolidated entities | |||
Unrealized loss on derivative financial instruments, net | |||
Realized gain on derivative financial instruments, net | ( | ( | |
Changes in assets and liabilities, net | |||
Other assets | |||
Other liabilities | ( | ||
Net cash provided by operating activities | |||
Cash flows from investing activities | |||
Principal fundings of loans receivable | ( | ( | |
Principal collections, sales proceeds, and cost-recovery proceeds from loans receivable | |||
Origination and other fees received on loans receivable | |||
Investment in debt securities | ( | ||
Payments under derivative financial instruments | ( | ( | |
Receipts under derivative financial instruments | |||
Collateral deposited under derivative agreements | ( | ( | |
Return of collateral deposited under derivative agreements | |||
Investment in unconsolidated entities | ( | ( | |
Return of capital from unconsolidated entities | |||
Proceeds from disposition of owned real estate | |||
Capital expenditures on owned real estate | ( | ( | |
Net cash provided by investing activities | |||
continued…
See accompanying notes to consolidated financial statements.
8
Blackstone Mortgage Trust, Inc.
Consolidated Statements of Cash Flows (Unaudited)
(in thousands)
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cash flows from financing activities | |||
Borrowings under secured debt | $ | $ | |
Repayments under secured debt | ( | ( | |
Proceeds from issuance of securitized debt obligations | |||
Repayments of securitized debt obligations | ( | ( | |
Borrowings under asset-specific debt | |||
Repayments under asset-specific debt | ( | ( | |
Net proceeds from term loan borrowings | |||
Repayments and repurchases of term loans | ( | ||
Payment of deferred financing costs | ( | ( | |
Distributions to non-controlling interests | ( | ( | |
Dividends paid on class A common stock | ( | ( | |
Repurchases of class A common stock | ( | ( | |
Net cash used in financing activities | ( | ( | |
Net increase in cash and cash equivalents | |||
Cash and cash equivalents at beginning of period | |||
Effects of currency translation on cash and cash equivalents | ( | ||
Cash and cash equivalents at end of period | $ | $ | |
Supplemental disclosure of cash flows information | |||
Payments of interest | $( | $( | |
Payments of income taxes | $( | $( | |
Supplemental disclosure of non-cash investing and financing activities | |||
Dividends declared, not paid | $( | $( | |
Loan principal payments held by servicer, net | $ | $ | |
Transfer of senior loans to owned real estate | $ | $ | |
Assumption of other assets and liabilities related to owned real estate | $ | $ | |
Accrued capital expenditures on owned real estate | $ | $ | |
See accompanying notes to consolidated financial statements.
9
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (Unaudited)
1. ORGANIZATION
References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us” or “our” refer to Blackstone Mortgage Trust,
Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise.
Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other
debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and
Australia. Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major
markets, and sponsored by experienced, well-capitalized real estate investment owners and operators. We finance our
investments in a variety of ways, including borrowing under secured credit facilities, issuing collateralized loan obligations,
or CLOs, other securitization transactions, syndicating senior loans and/or participations, and other forms of asset-level
financing, depending on our view of the most prudent financing option available for each of our investments. We are
externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a
real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.” Our
principal executive offices are located at 345 Park Avenue, New York, New York 10154.
We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal
income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders
and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an
exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding
company and conduct our business primarily through our various subsidiaries.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America, or GAAP, for interim financial information and the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. The consolidated financial statements, including the notes
thereto, are unaudited and exclude some of the disclosures required in audited financial statements. We believe we have
made all necessary adjustments, consisting of only normal recurring items, so that the consolidated financial statements are
presented fairly and that estimates made in preparing our consolidated financial statements are reasonable and prudent. The
operating results presented for interim periods are not necessarily indicative of the results that may be expected for any
other interim period or for the entire year. The accompanying unaudited consolidated interim financial statements should
be read in conjunction with the audited consolidated financial statements included in our Annual Report on Form 10-K for
the fiscal year ended December 31, 2025 filed with the Securities and Exchange Commission, or the SEC.
The accompanying consolidated financial statements have been prepared in accordance with GAAP, and include, on a
consolidated basis, our accounts, the accounts of our wholly-owned subsidiaries, majority-owned subsidiaries, and variable
interest entities, or VIEs, of which we are the primary beneficiary. All intercompany balances and transactions have been
eliminated in consolidation.
income and other expenses to conform to the current period presentation.
We consolidate all entities that we control through either majority ownership or voting rights. In addition, we consolidate
all VIEs of which we are considered the primary beneficiary. VIEs are defined as entities in which equity investors (i) do
not have an interest with the characteristics of a controlling financial interest and/or (ii) do not have sufficient equity at risk
for the entity to finance its activities without additional subordinated financial support from other parties. The entity that
consolidates a VIE is known as its primary beneficiary and is generally the entity with (i) the power to direct the activities
that most significantly affect the VIE’s economic performance and (ii) the right to receive benefits from the VIE or the
obligation to absorb losses of the VIE that could be significant to the VIE. Entities that do not qualify as VIEs are generally
considered voting interest entities, or VOEs, and are evaluated for consolidation under the voting interest model. VOEs are
consolidated when we control the entity through a majority voting interest or other means.
10
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
For consolidated entities, the non-controlling partner’s share of the assets, liabilities, and operations of each joint venture is
included in non-controlling interests as a component of total equity. The non-controlling partner’s interest is generally
computed as the joint venture partner’s ownership percentage.
When the requirements for consolidation are not met and we have significant influence over the operations of the entity, the
investment is accounted for under the equity method of accounting. Investments in unconsolidated entities for which we
have not elected the fair value option, or FVO, are initially recorded at cost and subsequently adjusted for our pro-rata
share of net income, contributions and distributions. When we elect the FVO, we record our share of the net asset value of
the entity and any related unrealized gains and losses.
We review our investments in unconsolidated entities for impairment each quarter or when there is an event or change in
circumstances that indicates a decrease in value. If there is a decrease in value due to a series of operating losses or other
factors, the investment is evaluated to determine if the loss in value is considered other than temporary. Although a current
fair value below the carrying value of the investment is an indicator of impairment, we will only recognize an impairment
if the loss in value is determined to be an other than temporary impairment. If an impairment is determined to be other than
temporary, we will record an impairment charge sufficient to reduce the investment’s carrying value to its fair value, which
would result in a new cost basis. This new cost basis will be used for future periods when recording subsequent income or
loss and cannot be written up to a higher value as a result of increases in fair value.
In 2017, we entered into a joint venture with Walker & Dunlop Inc., or Walker & Dunlop, to originate, hold, and finance
multifamily bridge loans, which we refer to as our Multifamily Joint Venture. Pursuant to the terms of the agreements
governing the joint venture, Walker & Dunlop contributed 15 % of the venture’s equity capital and we contributed 85 %.
We consolidate our Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests
included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned
by Walker & Dunlop. A portion of our Multifamily Joint Venture’s consolidated equity and results of operations are
allocated to these non-controlling interests based on Walker & Dunlop’s pro rata ownership of our Multifamily Joint
Venture.
In 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in triple net lease
properties, which we refer to as our Net Lease Joint Venture. Our aggregate ownership interest in our Net Lease Joint
Venture was 75 % as of March 31, 2026. We do not consolidate our Net Lease Joint Venture as we do not have a
controlling financial interest. Our investment in our Net Lease Joint Venture is accounted for under the equity method, and
is recorded in investment in unconsolidated entities on our consolidated balance sheets, and our pro-rata share of income
(loss) is recorded in income (loss) from unconsolidated entities on our consolidated statements of operations.
In 2025, we entered into a joint venture with a Blackstone-advised investment vehicle to acquire portfolios of performing
commercial mortgage loans, which we refer to as our Bank Loan Portfolio Joint Venture. During 2025, our Bank Loan
Portfolio Joint Venture acquired two portfolios of performing commercial mortgage loans. Our aggregate ownership
interest in our Bank Loan Portfolio Joint Venture was 35 % as of March 31, 2026. We do not consolidate our Bank Loan
Portfolio Joint Venture as we do not have a controlling financial interest. Our investment in our Bank Loan Portfolio Joint
Venture is accounted for using the FVO, and is recorded as an investment in unconsolidated entities on our consolidated
balance sheets, and our pro-rata share of any unrealized gains and losses is recorded in income (loss) from unconsolidated
entities on our consolidated statements of operations.
The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of
the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results may ultimately differ materially from those estimates.
Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest
method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these
investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally
suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery
of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized
cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually
11
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses
are deferred and recognized as a reduction to interest income; however, expenses related to loans we acquire are included
in general and administrative expenses as incurred.
The sources of revenue from our owned real estate assets, which is included in revenue from owned real estate on our
consolidated statements of operations, and the related revenue recognition policies are as follows:
Rental income primarily consists of base rent income arising from tenant leases at our office and multifamily properties.
We determine if an arrangement is a lease at contract inception, which is subject to the provisions of ASC 842. Base rent is
recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. We begin to
recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space.
Other operating income primarily consists of income from our hospitality properties and tenant reimbursement income.
Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue
is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered.
Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area
maintenance, real estate taxes, and other recoverable costs included in lease agreements.
We evaluate the collectability of receivables related to rental revenue on an individual lease basis and exercise judgment in
assessing collectability considering the length of time a receivable has been outstanding, tenant credit-worthiness, payment
history, available information about the financial condition of the tenant, and current economic trends, among other factors.
Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue.
Cash and cash equivalents represent cash held in banks and liquid investments with original maturities of three months or
less. We may have bank balances in excess of federally insured amounts; however, we deposit our cash and cash
equivalents with high credit-quality institutions to minimize credit risk exposure. We have not experienced, and do not
expect, any losses on our cash or cash equivalents. As of both March 31, 2026 and December 31, 2025, we had no
restricted cash on our consolidated balance sheets.
We originate and purchase commercial real estate debt and related instruments generally to be held as long-term
The current expected credit loss, or CECL, reserve required under the Financial Accounting Standards Board, or FASB,
Accounting Standards Codification, or ASC, Topic 326 “Financial Instruments – Credit Losses,” or ASC 326, reflects our
current estimate of potential credit losses related to our loans and notes receivable included in our consolidated balance
sheets. Changes to the CECL reserves are recognized through net income on our consolidated statements of operations.
While ASC 326 does not require any particular method for determining the CECL reserves, it does specify the reserves
should be based on relevant information about past events, including historical loss experience, current portfolio and
market conditions, and reasonable and supportable forecasts for the duration of each respective loan. In addition, other than
a few narrow exceptions, ASC 326 requires that all financial instruments subject to the CECL model have some amount of
loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of
loss, regardless of credit quality, subordinate capital, or other mitigating factors.
We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which
has been identified as an acceptable loss-rate method for estimating CECL reserves in FASB Staff Q&A Topic 326, No. 1.
The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to
each of our loans over their expected remaining term, taking into consideration expected economic conditions over the
relevant time frame. We apply the WARM method for the majority of our loan portfolio, which consists of loans that share
similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-
weighted model that considers the likelihood of default and expected loss given default for each such individual loan.
Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical
loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. To
estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market
loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued
since January 1, 1999 through February 28, 2026. Within this database, we focused our historical loss reference
calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most
comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV. We believe this
CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and
comparable dataset to our portfolio.
Our loans typically include commitments to fund incremental proceeds to our borrowers over the life of the loan. These
future funding commitments are also subject to the CECL model. The CECL reserve related to future loan fundings is
recorded as a component of other liabilities on our consolidated balance sheets. This CECL reserve is estimated using the
same process outlined above for our outstanding loan balances, and changes in this component of the CECL reserve will
similarly impact our consolidated net income. For both the funded and unfunded portions of our loans, we consider our
internal risk rating of each loan as the primary credit quality indicator underlying our assessment.
The CECL reserves are measured on a collective basis wherever similar risk characteristics exist within a pool of similar
assets. We have identified the following pools and measure the reserve for credit losses using the following methods:
•U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average
remaining maturity of our loan pool, and an economic view.
•Non-U.S. Loans: WARM method that incorporates a subset of historical loss data, expected weighted-average
remaining maturity of our loan pool, and an economic view.
•Unique Loans: a probability of default and loss given default model, assessed on an individual basis.
•Impaired Loans: impairment is indicated when it is deemed probable that we will not be able to collect all
amounts due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires
significant judgment from management and is based on several factors including (i) the underlying collateral
performance, (ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact
the borrower’s ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be
impaired, we record the impairment as a component of our CECL reserves by applying the practical expedient for
collateral dependent loans. The CECL reserves are assessed on an individual basis for these loans by comparing
the estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan.
These valuations require significant judgments, which include assumptions regarding capitalization rates, discount
rates, leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan
sponsorship, actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could
ultimately differ materially from these estimates. We only expect to charge off the impairment losses in our
consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non-
recoverable. This is generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are
otherwise consolidated. However, non-recoverability may also be concluded if, in our determination, it is nearly
certain that all amounts due will not be collected.
Contractual Term and Unfunded Loan Commitments
Expected credit losses are estimated over the contractual term of each loan, adjusted for expected repayments. As part of
our quarterly review of our loan portfolio, we assess the expected repayment date of each loan, which is used to determine
the contractual term for purposes of computing our CECL reserves.
Additionally, the expected credit losses over the contractual period of our loans are subject to the obligation to extend
credit through our unfunded loan commitments. The CECL reserve for unfunded loan commitments is adjusted quarterly,
as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in
estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans
receivable.
Credit Quality Indicator
Our risk rating is our primary credit quality indicator in assessing our current expected credit loss reserve. We perform a
quarterly risk review of our portfolio of loans, and assign each loan a risk rating based on a variety of factors, including,
without limitation, origination LTV, debt yield, property type, geographic and local market dynamics, physical condition,
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Notes to Consolidated Financial Statements (continued)
cash flow volatility, leasing and tenant profile, loan structure and exit plan, and project sponsorship. Based on a 5-point
scale, our loans are rated “l” through “5,” from less risk to greater risk, relative to our loan portfolio in the aggregate, which
ratings are defined as follows:
1 -Very Low Risk
2 -Low Risk
3 -Medium Risk
4 -High Risk/Potential for Loss: A loan that has a risk of realizing a principal loss.
5 -Impaired/Loss Likely: A loan that has a very high risk of realizing a principal loss or has otherwise incurred a
principal loss.
Estimation of Economic Conditions
In addition to the WARM method computations and probability-weighted models described above, our CECL reserves are
also adjusted to reflect our estimation of the current and future economic conditions that impact the performance of the
commercial real estate assets securing our loans. These estimations include unemployment rates, interest rates, expectations
of inflation and/or recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit
losses for our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we
have also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that broader
economic conditions may have on our loan portfolio’s performance. We generally also incorporate information from other
sources, including information and opinions available to our Manager, to further inform these estimations. This process
requires significant judgments about future events that, while based on the information available to us as of the balance
sheet date, are ultimately indeterminate and the actual economic condition impacting our portfolio could vary significantly
We may assume legal title, physical possession, or control of the collateral underlying a loan through a foreclosure, a deed-
in-lieu of foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over
decision-making at the property, resulting in us consolidating the real estate assets as VIEs. These real estate acquisitions
are classified as owned real estate, on our consolidated balance sheet and are initially recognized at fair value on the
acquisition date in accordance with the ASC Topic 805, “Business Combinations,” or ASC 805.
Upon acquisition of owned real estate assets, we assess the fair value of acquired tangible and intangible assets, which may
include land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other
identified intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and
assumed liabilities. We assess and consider fair value based on estimated cash flow projections that utilize discount and/or
capitalization rates that we deem appropriate, as well as other available market information. Estimates of future cash flows
are based on a number of factors, including the historical operating results, known and anticipated trends, and market and
economic conditions. We capitalize acquisition-related costs associated with asset acquisitions.
Real estate assets held for investment, except for land, are depreciated using the straight-line method over the assets’
estimated useful lives of up to 40 years for buildings, 15 years for land improvements, and 10 years for tenant
improvements. Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated
over their estimated useful lives. Lease intangibles are amortized over the remaining term of applicable leases on a straight-
line basis. The cost of ordinary repairs and maintenance are expensed as incurred.
Real estate assets held for investment are assessed for impairment on a quarterly basis. If the depreciated cost basis of the
asset exceeds the undiscounted cash flows over the remaining holding period, the asset is considered for impairment. The
impairment loss is recognized when the carrying value of the real estate assets exceed their fair value. The evaluation of
anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental
rates, capital requirements and anticipated holding periods that could differ materially from actual results. Refer to Note 4
for further information.
Real estate assets are classified as held for sale in the period when they meet the criteria under ASC Topic 360 “Property,
Plant, and Equipment.” Once a real estate asset is classified as held for sale, depreciation is suspended and the asset is
reported at the lower of its carrying value or fair value less cost to sell. If circumstances arise and we decide not to sell a
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Notes to Consolidated Financial Statements (continued)
real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon
reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for
sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for
investment, and (ii) its estimated fair value at the time of reclassification.
As of March 31, 2026 and December 31, 2025, we had 13 and 12 owned real estate assets, respectively, that were all
classified as held for investment.
In 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a subsidiary of M&T Bank, that
allows our borrowers to access multifamily agency financing through MTRCC’s Fannie Mae DUS and Freddie Mac
Optigo lending platforms, or our Agency Multifamily Lending Partnership. We will receive a portion of origination,
servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac
programs. Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer to MTRCC for
origination under the Fannie Mae program.
Revenue Recognition
For loans that we refer to MTRCC for origination under both the Fannie Mae and Freddie Mac programs, we recognize our
allocable portion of origination, servicing, and other fees in other income when we have satisfied our performance
obligations in accordance with the “Revenue from Contracts with Customers” Topic of the FASB, or ASC 606. Our
performance obligations are generally satisfied when the loan is referred by us to MTRCC and subsequently originated and
sold under the Fannie Mae and Freddie Mac programs. A portion of the fees recognized, such as servicing fees, are variable
and are reevaluated for collectibility on a recurring basis.
Loss-sharing Obligation
Pursuant to our agreement with MTRCC, we are subject to a loss-sharing obligation with respect to MTRCC’s obligation
to partially guarantee the performance of loans that they originate and sell under the Fannie Mae program. This loss-
sharing agreement requires us to fund a fixed amount of cash into a segregated account based on the amount MTRCC is
required to fund under the Fannie Mae program, with respect to loans we referred to MTRCC.
In addition, we will recognize a liability for these loss-sharing obligations. This liability will be initially recognized at fair
value with a corresponding expense at inception, and it will subsequently be amortized on a straight-line basis over the life
March 31, 2026, our maximum loss-sharing obligation associated with the loans referred by us to MTRCC under the
Fannie Mae program was $5.5 32
incurred as a result of the loss-sharing obligations.
We classify all derivative financial instruments as either other assets or other liabilities on our consolidated balance sheets
at fair value.
On the date we enter into a derivative contract, we designate each contract as (i) a hedge of a net investment in a foreign
operation, or net investment hedge, (ii) a hedge of a forecasted transaction or of the variability of cash flows to be received
or paid related to a recognized asset or liability, or cash flow hedge, (iii) a hedge of a recognized asset or liability, or fair
value hedge, or (iv) a derivative instrument not to be designated as a hedging derivative, or non-designated hedge. For all
derivatives other than those designated as non-designated hedges, we formally document our hedge relationships and
designation at the contract’s inception. This documentation includes the identification of the hedging instruments and the
hedged items, its risk management objectives, strategy for undertaking the hedge transaction and our evaluation of the
effectiveness of its hedged transaction.
On a quarterly basis, we also formally assess whether the derivative we designated in each hedging relationship is expected
to be, and has been, highly effective in offsetting changes in the value or cash flows of the hedged items. If it is determined
that a derivative is not highly effective at hedging the designated exposure, hedge accounting is discontinued and the
changes in fair value of the instrument are included in net income prospectively. Our net investment hedges are assessed
using a method based on changes in spot exchange rates. Gains and losses, representing hedge components excluded from
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
the assessment of effectiveness, are recognized in interest income on our consolidated statements of operations over the
contractual term of our net investment hedges on a systematic and rational basis, as documented at hedge inception in
accordance with our accounting policy election. All other changes in the fair value of our derivative instruments that
qualify as hedges are reported as a component of accumulated other comprehensive income (loss) on our consolidated
financial statements. Deferred gains and losses are reclassified out of accumulated other comprehensive income (loss) and
into net income in the same period or periods during which the hedged transaction affects earnings, and are presented in the
same line item as the earnings effect of the hedged item. For cash flow hedges, this is typically when the periodic swap
settlements are made, while for net investment hedges, this occurs when the hedged item is sold or substantially liquidated.
To the extent a derivative does not qualify for hedge accounting and is deemed a non-designated hedge, the changes in its
fair value are included in net income concurrently.
Proceeds or payments from periodic settlements of derivative instruments are classified on our consolidated statement of
cash flows in the same section as the underlying hedged item.
Refer to Note 6 for further information.
We record investments financed with secured debt or asset-specific debt as separate assets and the related borrowings
under any secured debt or asset-specific debt are recorded as separate liabilities on our consolidated balance sheets. Interest
income earned on the investments and interest expense incurred on the secured debt or asset-specific debt are reported
separately on our consolidated statements of operations.
Term Loans
We record our term loans as liabilities on our consolidated balance sheets. Where applicable, any issue discount or
transaction expenses are deferred and amortized through the maturity date of the term loans as additional non-cash interest
expense.
Senior Secured Notes
We record our senior secured notes as liabilities on our consolidated balance sheets. Where applicable, any issue discount
or transaction expenses are deferred and amortized through the maturity date of the senior secured notes as additional non-
cash interest expense.
Convertible Notes
Convertible note proceeds, unless issued with a substantial premium or an embedded conversion feature, are classified as
debt. Additionally, shares issuable under our convertible notes are included in diluted earnings per share in our
consolidated financial statements, if the effect is dilutive, using the if-converted method, regardless of settlement intent.
Where applicable, any issue discount or transaction expenses are deferred and amortized through the maturity date of the
convertible notes as additional non-cash interest expense.
Deferred Financing Costs
The deferred financing costs that are included as a reduction in the net book value of the related liability on our
consolidated balance sheets include issuance and other costs related to our debt obligations. These costs are amortized as
Underwriting commissions and offering costs incurred in connection with common stock offerings are reflected as a
reduction of additional paid-in capital. Costs incurred that are not directly associated with the completion of a common
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
The “Fair Value Measurements and Disclosures” Topic of the FASB, or ASC 820, defines fair value, establishes a
framework for measuring fair value, and requires certain disclosures about fair value measurements under GAAP.
Specifically, this guidance defines fair value based on exit price, or the price that would be received upon the sale of an
asset or the transfer of a liability in an orderly transaction between market participants at the measurement date.
ASC 820 also establishes a fair value hierarchy that prioritizes and ranks the level of market price observability used in
measuring financial instruments. Market price observability is affected by a number of factors, including the type of
financial instrument, the characteristics specific to the financial instrument, and the state of the marketplace, including the
existence and transparency of transactions between market participants. Financial instruments with readily available quoted
prices in active markets generally will have a higher degree of market price observability and a lesser degree of judgment
used in measuring fair value.
Financial instruments measured and reported at fair value are classified and disclosed based on the observability of inputs
used in the determination, as follows:
•Level 1: Generally includes only unadjusted quoted prices that are available in active markets for identical
financial instruments as of the reporting date.
•Level 2: Pricing inputs include quoted prices in active markets for similar instruments, quoted prices in less active
or inactive markets for identical or similar instruments where multiple price quotes can be obtained, and other
observable inputs, such as interest rates, yield curves, credit risks, and default rates.
•Level 3: Pricing inputs are unobservable for the financial instruments and include situations where there is little, if
any, market activity for the financial instrument. These inputs require significant judgment or estimation by
management of third parties when determining fair value and generally represent anything that does not meet the
criteria of Levels 1 and 2.
Certain of our other assets are reported at fair value, as of quarter-end, either (i) on a recurring basis or (ii) on a
nonrecurring basis, as a result of impairment or other events. Our assets that are recorded at fair value are discussed further
in Note 18. We generally value our assets recorded at fair value by either (i) discounting expected cash flows based on
assumptions regarding the collection of principal and interest and estimated market rates, or (ii) obtaining assessments from
third parties. For collateral-dependent loans that are identified as impaired, we measure impairment by comparing our
estimation of the fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These
valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates, leasing,
creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions
of other lenders, and other factors.
We have elected the FVO for one of our investments in an unconsolidated entity, our Bank Loan Portfolio Joint Venture,
and therefore report this investment at fair value. Given the fair value of this investment is not readily determinable, the net
asset value of the entity is used as a practical expedient.
As of March 31, 2026, we had an aggregate $84.9 million asset-specific CECL reserve related to seven of our loans
receivable with an aggregate amortized cost basis of $372.2 million, net of cost-recovery proceeds. The CECL reserve was
recorded based on our estimation of the fair value of the loans' aggregate underlying collateral as of March 31, 2026. These
loans receivable are therefore measured at fair value on a nonrecurring basis using significant unobservable inputs, and are
classified as Level 3 assets in the fair value hierarchy. We estimated the fair value of the collateral underlying the loans
receivable by considering a variety of inputs including property performance, market data, and comparable sales, as
applicable. The significant unobservable inputs employed include the exit capitalization rate assumption used to forecast
the future sale price of the underlying real estate collateral, which ranged from 4.9 % to 8.0 %, and the unlevered discount
rate assumption, which ranged from 8.0 % to 15.0 %.
During the three months ended March 31, 2026, we acquired legal title to one owned real estate asset through a foreclosure
transaction. At the time of acquisition, we determined the fair value of the real estate asset based on a variety of inputs, as
applicable, including, but not limited to, estimated cash flow projections, leasing assumptions, required capital
expenditures, market data, and comparable sales. The owned real estate asset was measured at fair value on a nonrecurring
basis using significant unobservable inputs and is classified as a Level 3 asset in the fair value hierarchy. The significant
unobservable inputs employed include (i) the exit capitalization rate assumption used to forecast the future sale price of the
asset, which was 6.5 %, and (ii) the unlevered discount rate assumption, which was 11.0 %. Refer to Notes 4 and 18 for
further information.
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Notes to Consolidated Financial Statements (continued)
We are also required by GAAP to disclose fair value information about financial instruments, which are not otherwise
reported at fair value in our consolidated balance sheet, to the extent it is practicable to estimate a fair value for those
instruments. These disclosure requirements exclude certain financial instruments and all non-financial instruments.
The following methods and assumptions are used to estimate the fair value of each class of financial instruments, for which
it is practicable to estimate that value:
•Cash and cash equivalents: The carrying amount of cash and cash equivalents approximates fair value.
•Loans receivable, net: The fair values of these loans were estimated using a discounted cash flow methodology,
taking into consideration various factors including capitalization rates, discount rates, leasing, credit worthiness of
major tenants, occupancy rates, availability and cost of financing, exit plan, loan sponsorship, actions of other
lenders, and other factors.
•Derivative financial instruments: The fair value of our foreign currency and interest rate contracts was estimated
using advice from a third-party derivative specialist, based on contractual cash flows and observable inputs
comprising foreign currency rates and credit spreads.
•Secured debt, net and other secured debt: The fair value of these instruments was estimated based on the rate at
which a similar credit facility would currently be priced. Other secured debt is included in other liabilities in our
consolidated balance sheets.
•Securitized debt obligations, net: The fair value of these instruments was estimated by utilizing third-party pricing
service providers. In determining the value of a particular investment, pricing service providers may use broker-
dealer quotations, reported trades, or valuation estimates from their internal pricing models to determine the
reported price.
•Asset-specific debt, net: The fair value of these instruments was estimated based on the rate at which a similar
agreement would currently be priced.
•Loan participations sold, net: The fair value of these instruments was estimated based on the value of the related
loan receivable asset.
•Term loans, net: The fair value of these instruments was estimated by utilizing third-party pricing service
providers. In determining the value of a particular investment, pricing service providers may use broker-dealer
quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported
price.
•Senior secured notes, net: The fair value of these instruments was estimated by utilizing third-party pricing service
providers. In determining the value of a particular investment, pricing service providers may use broker-dealer
quotations, reported trades, or valuation estimates from their internal pricing models to determine the reported
price.
•Convertible notes, net: Each series of the convertible notes is actively traded and their fair values were obtained
Our financial results generally do not reflect provisions for current or deferred income taxes on our REIT taxable income.
We believe that we operate in a manner that will continue to allow us to be taxed as a REIT and, as a result, we generally
do not expect to pay substantial corporate level taxes other than those payable by our taxable REIT subsidiaries. If we were
to fail to meet these requirements, we may be subject to federal, state, and local income tax on current and past income, and
penalties. Refer to Note 16 for further information.
Our stock-based compensation consists of awards issued to our Manager, certain individuals employed by an affiliate of
our Manager, and certain members of our board of directors that vest over the life of the awards, as well as deferred stock
units issued to certain members of our board of directors. Stock-based compensation expense is recognized for these
awards in net income on a variable basis over the applicable vesting period of the awards, based on the value of our class A
common stock. Refer to Note 17 for further information.
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Notes to Consolidated Financial Statements (continued)
Basic earnings per share, or Basic EPS, is computed in accordance with the two-class method and is based on (i) the net
earnings allocable to our class A common stock, including restricted class A common stock and deferred stock units,
divided by (ii) the weighted-average number of shares of our class A common stock, including restricted class A common
stock and deferred stock units outstanding during the period. Our restricted class A common stock is considered a
participating security, as defined by GAAP, and has been included in our Basic EPS under the two-class method as these
restricted shares have the same rights as our other shares of class A common stock, including participating in any gains or
losses.
Diluted earnings per share, or Diluted EPS, is determined using the if-converted method, and is based on (i) the net
earnings, adjusted for interest expense incurred on our convertible notes during the relevant period, net of incentive fees,
allocable to our class A common stock, including restricted class A common stock and deferred stock units, divided by (ii)
the weighted-average number of shares of our class A common stock, including restricted class A common stock, deferred
stock units, and shares of class A common stock issuable under our convertible notes. Refer to Note 14 for further
In the normal course of business, we enter into transactions not denominated in United States, or U.S., dollars. Foreign
exchange gains and losses arising on such transactions are recorded as a gain or loss in our consolidated statements of
operations. In addition, we consolidate entities that have a non-U.S. dollar functional currency. Non-U.S. dollar-
denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and
income, expenses, gains, and losses are translated at the average exchange rate over the applicable period. Cumulative
translation adjustments arising from the translation of non-U.S. dollar-denominated subsidiaries are recorded in other
In December 2025, the FASB issued Accounting Standards Update, or ASU, 2025-11, “Interim Reporting (Topic 270):
Narrow Scope Improvements,” which amends the guidance in ASC 270, Interim Reporting. The update enhances interim
disclosure requirements by clarifying the information that must be presented in quarterly periods, including improved
transparency regarding significant events, accounting policy updates, and material developments that occur between annual
reporting dates. ASU 2025-11 also aligns certain interim reporting requirements more closely with annual disclosure
objectives to promote consistency and comparability. The amendments are effective for interim periods beginning after
December 15, 2027, and early adoption is permitted. We have not early adopted ASU 2025-11 and do not expect the
adoption of ASU 2025-11 to have a material impact on our consolidated financial statements.
In December 2025, the FASB issued ASU 2025-09, “Derivatives and Hedging (Topic 815): Hedge Accounting
Improvements,” which amends the guidance in ASC 815, Derivatives and Hedging. The update refines certain hedge
accounting requirements, including clarifications to the designation and documentation criteria for hedge relationships,
improvements to the assessment of hedge effectiveness, and enhanced disclosures intended to provide greater transparency
into an entity’s risk management activities involving derivatives. ASU 2025-09 is effective for annual periods beginning
after December 15, 2026, including interim periods within those annual periods, and early adoption is permitted. We have
not early adopted ASU 2025-09 and do not expect the adoption of ASU 2025-09 to have a material impact on our
consolidated financial statements.
In December 2025, the FASB issued ASU 2025-08, “Financial Instruments—Credit Losses (Topic 326): Purchased
Loans,” which clarifies the application of the CECL model to purchased loans, including purchased credit‑deteriorated
loans, and enhances related disclosure requirements. ASU 2025-08 is effective for annual reporting periods beginning after
December 15, 2026, including interim periods within those annual periods. Early adoption is permitted. We have not early
adopted ASU 2025-08 and do not expect the adoption of ASU 2025-08 to have a material impact on our consolidated
financial statements.
In July 2025, the FASB issued ASU 2025-05, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit
Losses for Accounts Receivable and Contract Assets,” which amends the guidance in ASC 326, Financial Instruments—
Credit Losses. This update provides a practical expedient related to the estimation of expected credit losses for current
accounts receivable and current contract assets that arise from transactions accounted for under ASC 606. The amendment
notes that in developing reasonable and supportable forecasts as part of estimating expected credit losses, all entities may
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Notes to Consolidated Financial Statements (continued)
elect a practical expedient that assumes that current conditions as of the balance sheet date do not change for the remaining
life of the asset. ASU 2025-05 is effective for annual periods beginning after December 15, 2025, including interim periods
within those annual periods, and early adoption is permitted. The adoption of ASU 2025-05 in 2026 did not have a material
impact on our consolidated financial statements. We recognize revenue under ASC 606 pursuant to our Agency
Multifamily Lending Partnership and income from our hospitality owned real estate assets.
In May 2025, the FASB issued ASU 2025-03, “Business Combinations (Topic 805) and Consolidation (Topic 810):
Determining the Accounting Acquirer in the Acquisition of a Variable Interest Entity,” which amends the guidance in ASC
805, Business Combinations. This update clarifies the determination of the accounting acquirer in business combinations
that are primarily effected through the exchange of equity interests and involve the acquisition of a VIE. Specifically,
entities are now required to consider the factors outlined in ASC 805-10-55-12 through 55-15 when determining the
accounting acquirer, rather than defaulting to the primary beneficiary of the VIE as the accounting acquirer. ASU 2025-03
is effective for annual periods beginning after December 15, 2026, including interim periods within those annual periods,
and early adoption is permitted. We have not early adopted ASU 2025-03 and do not expect the adoption of ASU 2025-03
to have a material impact on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-04 “Debt with Conversion and Other Options (Subtopic 470-20): Induced
Conversions of Convertible Debt Instruments,” or ASU 2024-04. ASU 2024-04 clarifies the accounting treatment for
settlement of a convertible debt instrument as an induced conversion. ASU 2024-04 is effective on a prospective basis,
with the option for retrospective application, for fiscal years beginning after December 15, 2025. The adoption of ASU
2024-04 in 2026 did not have a material impact on our consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03 “Expense Disaggregation Disclosures (Subtopic 220-40):
Disaggregation of Income Statement Expenses,” or ASU 2024-03. ASU 2024-03 requires disclosures in the notes to the
financial statements on specified information about certain costs and expenses for each interim and annual reporting period.
ASU 2024-03 is effective on either a prospective basis, with the option for retrospective application, for annual periods
beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, and
early adoption is permitted. We have not early adopted ASU 2024-03 and do not expect the adoption of ASU 2024-03 to
have a material impact on our consolidated financial statements.
20
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
3. LOANS RECEIVABLE, NET
March 31, 2026 | December 31, 2025 | ||
Number of loans | |||
Principal balance | $ | $ | |
Net book value | $ | $ | |
Unfunded loan commitments(1) | $ | $ | |
Weighted-average cash coupon(2) | + | + | |
Weighted-average all-in yield(2) | + | + | |
Weighted-average maximum maturity (years)(3) |
(1)Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real
estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will
generally be funded over the term of each loan, subject in certain cases to an expiration date.
(2)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark
rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices, as applicable to each loan. As of
March 31, 2026, 97 % of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.
The remaining 3 % of our loans by principal balance earned a fixed rate of interest. As of December 31, 2025, 97 %
of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR. The remaining 3 % of
our loans by principal balance earned a fixed rate of interest. In addition to cash coupon, all-in yield includes the
amortization of deferred origination and extension fees, loan origination costs, and purchase discounts, as well as the
accrual of exit fees. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any.
(3)Maximum maturity assumes all extension options are exercised by the borrower, however our loans may be repaid
prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual methods, if any. As of
March 31, 2026, 41 % of our loans by principal balance were subject to yield maintenance or other prepayment
restrictions and 59 % were open to repayment by the borrower without penalty. As of December 31, 2025, 40 % of
our loans by principal balance were subject to yield maintenance or other prepayment restrictions and 60 % were
open to repayment by the borrower without penalty.
Loans Receivable Principal Balance | ||||||
Index Rate Floors | USD | Non-USD(1) | Total | |||
Fixed Rate | $ | $ | $ | |||
0.00% or no floor(2) | ||||||
0.01% to 1.00% floor | ||||||
1.01% to 2.00% floor | ||||||
2.01% to 3.00% floor | ||||||
3.01% or more floor | ||||||
Total(3) | $ | $ | $ | |||
(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.
(2)Includes all impaired loans.
(3)As of March 31, 2026, the weighted-average index rate floor of our floating-rate loans receivable principal balance
was 1.40 %. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was
21
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Principal Balance | Deferred Fees / Other Items(1) | Net Book Value | |||
Loans Receivable, as of December 31, 2025 | $ | $( | $ | ||
Loan fundings | — | ||||
Loan repayments, sales, and cost-recovery proceeds | ( | ( | ( | ||
Charge-offs | ( | ( | |||
Transfer to owned real estate | ( | — | ( | ||
Transfer to other assets, net(2) | ( | — | ( | ||
Payment-in-kind interest, net of interest received | — | ||||
Unrealized (loss) gain on foreign currency translation | ( | ( | |||
Deferred fees and other items | — | ( | ( | ||
Amortization of fees and other items | — | ||||
Loans Receivable, as of March 31, 2026 | $ | $( | $ | ||
CECL reserve | ( | ||||
Loans Receivable, net, as of March 31, 2026 | $ |
(1)Other items primarily consist of purchase and sale discounts or premiums, exit fees, deferred origination expenses,
and cost-recovery proceeds.
(2)This amount relates to intangible and other assets recorded in connection with a loan that was transferred to owned
real estate, net of any liabilities recorded upon acquisition. See Note 6 for further information.
22
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
receivable portfolio ($ in thousands):
March 31, 2026 | ||||||||
Property Type | Number of Loans | Net Book Value | Net Loan Exposure(1) | Net Loan Exposure Percentage of Portfolio | ||||
Multifamily | $ | $ | ||||||
Office | ||||||||
Industrial | ||||||||
Hospitality | ||||||||
Retail | ||||||||
Self-storage | ||||||||
Life Sciences / Studio | ||||||||
Other | ||||||||
Total loans receivable | $ | $ | ||||||
CECL reserve | ( | |||||||
Loans receivable, net | $ | |||||||
Geographic Location | Number of Loans | Net Book Value | Net Loan Exposure(1) | Net Loan Exposure Percentage of Portfolio | ||||
United States | ||||||||
Sunbelt | $ | $ | ||||||
West | ||||||||
Northeast | ||||||||
Midwest | ||||||||
Northwest | ||||||||
Subtotal | ||||||||
International | ||||||||
United Kingdom | ||||||||
Australia | ||||||||
Ireland | ||||||||
Spain | ||||||||
Sweden | ||||||||
Canada | ||||||||
Other Europe | ||||||||
Other International | ||||||||
Subtotal | ||||||||
Total loans receivable | $ | $ | ||||||
CECL reserve | ( | |||||||
Loans receivable, net | $ | |||||||
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2026,
which is our principal balance net of (i) $961.1 million of asset-specific debt, (ii) $20.3 million of cost-recovery
proceeds, and (iii) our total loans receivable CECL reserve of $291.6 million. Our asset-specific debt is structurally
non-recourse and term-matched to the corresponding collateral loans.
23
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
December 31, 2025 | ||||||||
Property Type | Number of Loans | Net Book Value | Net Loan Exposure(1) | Net Loan Exposure Percentage of Portfolio | ||||
Office | $ | $ | ||||||
Multifamily | ||||||||
Industrial | ||||||||
Hospitality | ||||||||
Retail | ||||||||
Self-storage | ||||||||
Life Sciences/Studio | ||||||||
Other | ||||||||
Total loans receivable | $ | $ | ||||||
CECL reserve | ( | |||||||
Loans receivable, net | $ | |||||||
Geographic Location | Number of Loans | Net Book Value | Net Loan Exposure(1) | Net Loan Exposure Percentage of Portfolio | ||||
United States | ||||||||
Sunbelt | $ | $ | ||||||
West | ||||||||
Northeast | ||||||||
Midwest | ||||||||
Northwest | ||||||||
Subtotal | ||||||||
International | ||||||||
United Kingdom | ||||||||
Ireland | ||||||||
Australia | ||||||||
Spain | ||||||||
Sweden | ||||||||
Canada | ||||||||
Other Europe | ||||||||
Other International | ||||||||
Subtotal | ||||||||
Total loans receivable | $ | $ | ||||||
CECL reserve | ( | |||||||
Loans receivable, net | $ | |||||||
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of December 31,
2025, which is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-
recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. See Note 2 for further
discussion of loan participations sold. Our asset-specific debt is structurally non-recourse and term-matched to the
corresponding collateral loans.
24
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Loan Risk Ratings
As further described in Note 2, we evaluate our loan portfolio on a quarterly basis. In conjunction with our quarterly loan
portfolio review, we assess the risk factors of each loan, and assign a risk rating based on several factors. Factors
considered in the assessment include, but are not limited to, risk of loss, origination LTV, debt yield, collateral
performance, structure, exit plan, and sponsorship. Loans are rated “1” (less risk) through “5” (greater risk), which ratings
are defined in Note 2.
thousands):
March 31, 2026 | ||||||
Risk Rating | Number of Loans | Net Book Value | Net Loan Exposure(1) | |||
1 | $ | $ | ||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Total loans receivable | $ | $ | ||||
CECL reserve | ( | |||||
Loans receivable, net | $ | |||||
December 31, 2025 | ||||||
Risk Rating | Number of Loans | Net Book Value | Net Loan Exposure(1) | |||
1 | $ | $ | ||||
2 | ||||||
3 | ||||||
4 | ||||||
5 | ||||||
Total loans receivable | $ | $ | ||||
CECL reserve | ( | |||||
Loans receivable, net | $ | |||||
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2026,
which is our principal balance net of (i) $961.1 million of asset-specific debt, (ii) $20.3 million of cost-recovery
proceeds, and (iii) our total loans receivable CECL reserve of $291.6 million. Our net loan exposure as of
December 31, 2025 is our principal balance net of (i) $999.8 million of asset-specific debt, (ii) $24.5 million of cost-
recovery proceeds, and (iii) our total loans receivable CECL reserve of $284.4 million. Our asset-specific debt is
structurally non-recourse and term-matched to the corresponding collateral loans.
Our loan portfolio had a weighted-average risk rating of 3.0
December 31, 2025.
25
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Current Expected Credit Loss Reserve
The CECL reserves required under GAAP reflect our current estimate of potential credit losses related to the loans included
in our consolidated balance sheets. Refer to Note 2 for further discussion of our CECL reserves. The following table
presents the activity in our loans receivable CECL reserve by investment pool for the three months ended March 31, 2026
and 2025 ($ in thousands):
U.S. Loans(1) | Non-U.S. Loans | Unique Loans | Impaired Loans | Total | |||||
Loans Receivable, Net | |||||||||
CECL reserves as of December 31, 2025 | $ | $ | $ | $ | $ | ||||
Increase (decrease) in CECL reserves | ( | ||||||||
Charge-offs of CECL reserves | ( | ( | |||||||
CECL reserves as of March 31, 2026 | $ | $ | $ | $ | $ | ||||
CECL reserves as of December 31, 2024 | $ | $ | $ | $ | $ | ||||
Increase in CECL reserves | |||||||||
Charge-offs of CECL reserves | ( | ( | |||||||
CECL reserves as of March 31, 2025 | $ | $ | $ | $ | $ |
During the three months ended March 31, 2026, we recorded a net increase of $7.2 million in the CECL reserves against
our loans receivable portfolio, primarily driven by a $9.6 million increase in our general CECL reserve partially offset by a
$2.4 million decrease in our asset-specific CECL reserve, bringing our total loans receivable CECL reserves to
$291.6 million as of March 31, 2026. The increase in our general CECL reserve was primarily driven by new loan
originations. The decrease in our asset-specific reserve was driven by charge-offs of $46.5 million primarily related to the
resolution of one previously impaired loan as a result of our acquisition of title through a foreclosure of a hospitality
collateral property located in San Francisco, CA, which is now included on our consolidated balance sheet as an owned real
estate asset. This was largely offset by additions to our asset-specific CECL reserve related to two additional loans with a
total amortized cost basis of $284.8 million that were impaired during the three months ended March 31, 2026. The income
accrual was suspended on the two newly impaired loans, as the recovery of income and principal was doubtful. During the
three months ended March 31, 2026, we recorded $1.4 million of interest income on these loans.
As of March 31, 2026, we had an aggregate $84.9 million asset-specific CECL reserve related to seven of our loans
receivable, with a total amortized cost basis of $372.2 million, net of cost-recovery proceeds. Impairments are each
determined individually as a result of changes in the specific credit quality factors for each such loan. These factors
included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events
of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the
loan. This asset-specific CECL reserve was recorded based on our estimation of the fair value of each loan’s underlying
collateral as of March 31, 2026.
No income was recorded on our impaired loans subsequent to determining that they were impaired. During the three
months ended March 31, 2026, we received an aggregate $0.5 million of cash proceeds from such loans that were applied
as a reduction to the amortized cost basis of each respective loan.
As of March 31, 2026, two of our performing loans with an aggregate amortized cost basis of $156.7 million were in
default. With respect to one of these loans, the default was a technical default as a result of the non-payment of an
extension fee, the loan was not past its maturity date and was current on its interest payments. The other loan was in
payment default and was less than 90 days past due on its interest payment. Both of these loans had a risk rating of “4.” All
other borrowers under performing loans were in compliance with the applicable contractual terms of each respective loan,
including any required payment of interest. Refer to Note 2 for further discussion of our policies on revenue recognition
and our CECL reserves.
26
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
net book value of our loan portfolio as of March 31, 2026 and December 31, 2025, respectively, by year of origination,
investment pool, and risk rating ($ in thousands):
Net Book Value of Loans Receivable by Year of Origination(1) | ||||||||||||||
As of March 31, 2026 | ||||||||||||||
Risk Rating | 2026 | 2025 | 2024 | 2023 | 2022 | Prior | Total | |||||||
U.S. loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total U.S. loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Non-U.S. loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total Non-U.S. loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Unique loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total unique loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Impaired loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total impaired loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Total loans receivable | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total loans receivable | $ | $ | $ | $ | $ | $ | $ | |||||||
CECL reserve | ( | |||||||||||||
Loans receivable, net | $ | |||||||||||||
Gross charge-offs(2) | ( | $( | ||||||||||||
(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan
modifications.
(2)Represents charge-offs by year of origination during the three months ended March 31, 2026.
27
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Net Book Value of Loans Receivable by Year of Origination(1) | ||||||||||||||
As of December 31, 2025 | ||||||||||||||
Risk Rating | 2025 | 2024 | 2023 | 2022 | 2021 | Prior | Total | |||||||
U.S. loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total U.S. loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Non-U.S. loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total Non-U.S. loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Unique loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total unique loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Impaired loans | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | ||||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total impaired loans | $ | $ | $ | $ | $ | $ | $ | |||||||
Total loans receivable | ||||||||||||||
1 | $ | $ | $ | $ | $ | $ | $ | |||||||
2 | ||||||||||||||
3 | $ | |||||||||||||
4 | ||||||||||||||
5 | ||||||||||||||
Total loans receivable | $ | $ | $ | $ | $ | $ | $ | |||||||
CECL reserve | ( | |||||||||||||
Loans receivable, net | $ | |||||||||||||
Gross charge-offs(2) | ( | ( | ( | $( | ||||||||||
(1)Date loan was originated or acquired by us. Origination dates are subsequently updated to reflect material loan
modifications.
(2)Represents charge-offs by year of origination during the year ended December 31, 2025.
28
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Loan Modifications Pursuant to ASC 326
During the twelve months ended March 31, 2026, we entered into four loan modifications that require disclosure pursuant
to ASC 326. Three of these loans were collateralized by office assets and one was collateralized by a life sciences/studio
asset.
loan modification had a term extension of 3.8 years, the loan was bifurcated into a separate senior loan and subordinate
loan, and the borrower paid a $1.7 million fee upon closing of the modification. We are accruing interest on the senior loan,
which is paying interest current, and deferring interest on the subordinate loan that is paying interest in-kind. As of
March 31, 2026, the amortized cost basis of this loan was $242.3 million, or 1.4 % of our aggregate loans receivable
portfolio, with no unfunded commitments. This loan was in compliance with its modified contractual terms as of March 31,
2026.
The other three loan modifications included term extensions combined with other-than-insignificant payment delays and
interest rate reductions. The first loan modification included a term extension of one year , the interest rate on the senior
loan decreased by 2.43 %, the borrower repaid $25.0 million upon closing of the modification, and the loan was bifurcated
into a separate senior loan and subordinate loan. The senior loan is paying interest partially current, and partially in-kind,
while the subordinate loan is paying interest in-kind. We are accruing all of the interest on the senior loan and deferring
interest on the subordinate loan. The second loan modification included a term extension of 4.3 years, the interest rate
decreased by 3.56 %, and the loan was bifurcated into a separate senior loan and subordinate loan. We are accruing all of
the interest on the senior loan that is paying current, and deferring interest on the subordinate loan, which is paid-in-kind.
The third loan modification included a term extension of 4.3 years, the interest rate decreased by 4.19 %, the borrower
repaid $12.7 million upon closing of the modification, and the loan was bifurcated into a separate senior loan and
subordinate loan. We are accruing all of the interest on the senior loan that is paying current and deferring interest on the
subordinate loan, which is paid-in-kind. As of March 31, 2026, the aggregate amortized cost basis of these loans was
$386.1 million, or 2.2 % of our aggregate loans receivable portfolio, with an aggregate $67.7 million of unfunded
commitments. These loans were in compliance with their modified contractual terms as of March 31, 2026.
All four of these loans had a risk rating of “5” at the time of modification. In aggregate, these modifications resulted in the
bifurcation of all four loans into separate senior and subordinate loans, or eight loans in aggregate. As of March 31, 2026,
bifurcated subordinate loans all had a risk rating of “5,” as collection of amounts due under the loan terms was doubtful.
Loans with a risk rating of “3” and “4” are included in the determination of our general CECL reserve and loans with a risk
rating of “5” are evaluated individually for an asset-specific CECL reserve. Loan modifications that allow the option to pay
interest in-kind increase our potential economics and the size of our secured claim, as interest is capitalized and added to
the outstanding principal balance for applicable loans. As of March 31, 2026, no income was recorded on our loans
subsequent to determining that they were impaired and risk rated “5.”
4. OWNED REAL ESTATE, NET
As of March 31, 2026 and December 31, 2025, we had 13 and 12 owned real estate assets, respectively. During the three
months ended March 31, 2026, we acquired one owned real estate asset through a foreclosure transaction with an
acquisition price of $41.1 million. We allocated $22.8 million to land and land improvements, $7.6 million to building and
building improvements, and $10.7 million to other components of the purchase price, including cash held in reserves at the
time of acquisition. There were no acquired intangible assets. We charged off $46.8 million of CECL reserves relating to
the loan that had previously been secured by this asset, as the loan’s carrying value of $87.9 million at the time of the
foreclosure exceeded the acquisition date fair value noted above. See Note 2 for further discussion of owned real estate
assets.
29
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Acquisitions
The acquisition of one owned real estate asset during the three months ended March 31, 2026 was accounted for as an asset
acquisition under ASC 805, and we recognized this property as an owned real estate asset held for investment. The
following table presents the owned real estate asset that was acquired during the three months ended March 31, 2026 ($ in
thousands):
Acquisition Date | Location | Property Type | Acquisition Date Fair Value | |||
March 2026 | San Francisco, CA | Hospitality | $ | |||
$ |
Dispositions
During the three months ended March 31, 2026, we completed a partial sale of one owned real estate asset, a multifamily
property located in San Antonio, TX. The carrying value of the asset at the time of disposition was $15.3 million, and we
received net cash proceeds of $15.1 million, resulting in a net loss of $0.2 million, which is included in net loss on
disposition of owned real estate on our consolidated statements of operations.
consolidated balance sheets ($ in thousands):
March 31, 2026 | December 31, 2025 | ||
Assets | |||
Building and building improvements | $ | $ | |
Land and land improvements | |||
Total | $ | $ | |
Less: accumulated depreciation | ( | ( | |
Owned real estate, net | $ | $ | |
Intangible real estate assets | $ | $ | |
Less: accumulated amortization | ( | ( | |
Intangible real estate assets, net(1) | $ | $ | |
Liabilities | |||
Intangible real estate liabilities | $ | $ | |
Less: accumulated amortization | ( | ( | |
Intangible real estate liabilities, net(2) | $ | $ |
(1)Included within other assets on our consolidated balance sheets. Refer to Note 6 for further information.
(2)Included within other liabilities on our consolidated balance sheets. Refer to Note 6 for further information.
30
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Three Months Ended March 31, | |||
2026 | 2025 | ||
Rental revenue | $ | $ | |
Hospitality revenue | |||
Other operating revenue | |||
Revenue from owned real estate | $ | $ | |
Operating expense | $ | $ | |
Depreciation and amortization expense | |||
Total expenses from owned real estate | $ | $ | |
Loss from owned real estate | $( | $( | |
March 31, 2026. Leases at our multifamily assets are short term, generally 12 months or less, and are therefore not included
($ in thousands):
Future Minimum Rents | |
2026 (remaining) | $ |
2027 | |
2028 | |
2029 | |
2030 | |
Thereafter | |
Total | $ |
thereafter as March 31, 2026 ($ in thousands):
In-place lease intangibles | Above-market lease intangibles | Below-market lease intangibles | |||
2026 (remaining) | $ | $ | $( | ||
2027 | ( | ||||
2028 | ( | ||||
2029 | ( | ||||
2030 | ( | ||||
Thereafter | ( | ||||
Total | $ | $ | $( |
31
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
5. INVESTMENTS IN UNCONSOLIDATED ENTITIES
As of March 31, 2026, we hold certain investments in unconsolidated entities that are accounted for under the equity
method of accounting or the FVO, as our ownership interest in each entity does not meet the requirements for
consolidation. Refer to Note 2 for further details.
March 31, 2026 | ||||||
Investments in Unconsolidated Entities | Number of Assets | Ownership Interest | Book Value | |||
Unconsolidated entities carried at historical cost | ||||||
Net Lease Joint Venture | $ | |||||
Total unconsolidated entities carried at historical cost | ||||||
Unconsolidated entities carried at fair value | ||||||
Bank Loan Portfolio Joint Venture | ||||||
Total unconsolidated entities carried at fair value | ||||||
Total | $ | |||||
December 31, 2025 | ||||||
Investments in Unconsolidated Entities | Number of Assets | Ownership Interest | Book Value | |||
Unconsolidated entities carried at historical cost | ||||||
Net Lease Joint Venture | $ | |||||
Total unconsolidated entities carried at historical cost | ||||||
Unconsolidated entities carried at fair value: | ||||||
Bank Loan Portfolio Joint Venture | ||||||
Total unconsolidated entities carried at fair value: | ||||||
Total | $ | |||||
(1)The number of assets represents the number of commercial real estate properties.
(2)The number of assets represents the number of commercial mortgage loans.
(3)Represents our aggregate ownership interest in our Bank Loan Portfolio Joint Venture, which owns an initial
portfolio of commercial mortgage loans acquired during the three months ended June 30, 2025, in which we hold a
hold a 50 % interest.
32
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
March 31, 2026 and 2025 ($ in thousands):
Investments in Unconsolidated Entities | December 31, 2025 | Contributions | Distributions | Income From Unconsolidated Entities(1) | Accumulated Other Comprehensive Loss | March 31, 2026 | ||||||
Net Lease Joint Venture | $ | $ | $( | $ | $( | $ | ||||||
Bank Loan Portfolio Joint Venture | ( | |||||||||||
Total | $ | $ | $( | $ | $( | $ | ||||||
Investments in Unconsolidated Entities | December 31, 2024 | Contributions | Distributions | Loss From Unconsolidated Entities(1) | Accumulated Other Comprehensive Income | March 31, 2025 | ||||||
Net Lease Joint Venture | $ | $ | $ | $( | $( | $ | ||||||
Total | $ | $ | $ | $( | $( | $ |
(1)Includes our share of non-cash items such as (i) depreciation and amortization, and (ii) unrealized gains recorded by
unconsolidated entities.
Our Net Lease Joint Venture and Bank Loan Portfolio Joint Venture have each entered into and may continue to enter into
derivative agreements where we would be required to make payment for periodic or final settlement of derivative contracts
if either our Net Lease Joint Venture or Bank Loan Portfolio Joint Venture, as applicable, is unable to fulfill its respective
obligations.
33
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
6. OTHER ASSETS AND LIABILITIES
Other Assets
March 31, 2026 | December 31, 2025 | ||
Accrued interest receivable | $ | $ | |
Real estate intangible assets, net | |||
Debt securities, at fair value(1) | |||
Other real estate assets | |||
Derivative assets | |||
Accounts receivable and other assets(2) | |||
Collateral deposited under derivative agreements | |||
Loan portfolio payments held by servicer(3) | |||
Prepaid expenses | |||
Total | $ | $ |
(1)Represents an investment in a significant risk transfer, or SRT, transaction with a UK financial institution structured
as a credit-linked note, or the UK Bank Loan Portfolio SRT. The investment constitutes the first-loss tranche of a
reference portfolio comprising a diversified, granular portfolio of low-leverage commercial real estate loans held by
the UK financial institution. The SRT investment earns a floating-rate cash coupon of SONIA + 7.00 %, which is
recognized in interest and related income in our consolidated statements of operations. The investment is recorded at
fair value, with changes in fair value recognized in other income, net in our consolidated statements of operations.
As of March 31, 2026, no realized credit losses have been incurred with respect to the underlying reference loan
portfolio.
(2)Includes $2.6 million and $55.5 million as of March 31, 2026 and December 31, 2025, respectively, of cash
collateral held by our CLOs that was subsequently remitted by the trustee to repay a portion of the outstanding
senior CLO securities, or that was subsequently reinvested by purchasing additional collateral into our CLOs.
(3)Primarily represents loan principal repayments held by our third-party loan servicers as of the balance sheet date that
were remitted to us during the subsequent remittance cycle.
34
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Other Liabilities
March 31, 2026 | December 31, 2025 | ||
Other real estate liabilities | $ | $ | |
Accrued dividends payable | |||
Accrued interest payable | |||
Other secured debt(1) | |||
Accrued management fees payable | |||
Accounts payable and other liabilities | |||
Current expected credit loss reserves for unfunded loan commitments(2) | |||
Derivative liabilities | |||
Debt repayments pending servicer remittance(3) | |||
Total | $ | $ |
(1)Represents financing on our retained investment in the European Loan Securitization. Refer to Note 8 for further
information.
(2)Represents the CECL reserve related to our unfunded loan commitments.
(3)Represents pending transfers from our third-party loan servicer that were remitted to our banking counterparties or
CLO trustees during the subsequent remittance cycle.
Current Expected Credit Loss Reserves for Unfunded Loan Commitments
As of March 31, 2026, we had aggregate unfunded commitments of $1.2 billion related to 52 loans. The expected credit
losses over the contractual period of our loans are impacted by our obligations to extend further credit through our
unfunded loan commitments. See Note 2 for further discussion of the CECL reserves related to our unfunded loan
commitments, and Note 21 for further discussion of our unfunded loan commitments. During the three months ended
March 31, 2026, we recorded an increase in the CECL reserves related to our unfunded loan commitments of $1.5 million,
bringing our total unfunded loan commitments CECL reserve to $13.1 million as of March 31, 2026. During the three
months ended March 31, 2025, we recorded an increase in the CECL reserves related to our unfunded loan commitments of
$75 thousand, bringing our total unfunded loan commitments CECL reserve to $10.5 million as of March 31, 2025.
7. SECURED DEBT, NET
Our secured debt represents borrowings under our secured credit facilities. During the three months ended March 31, 2026,
we closed $161.3 million of new borrowings against $351.0 million of collateral assets.
Secured Debt Borrowings Outstanding | |||
March 31, 2026 | December 31, 2025 | ||
Secured credit facilities | $ | $ | |
Deferred financing costs(1) | ( | ( | |
Net book value of secured debt | $ | $ | |
(1)Costs incurred in connection with our secured debt are recorded on our consolidated balance sheets when incurred
and recognized as a component of interest expense over the life of each related facility.
35
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Secured Credit Facilities
Our secured credit facilities are bilateral agreements we use to finance diversified pools of senior loan collateral with
sufficient flexibility to accommodate our investment and asset management strategy. The facilities are generally structured
to provide currency, index, and term-matched financing without capital markets-based mark-to-market provisions. Our
credit facilities are diversified across 16 counterparties, primarily consisting of top global financial institutions to minimize
our counterparty risk exposure.
March 31, 2026 | ||||||||||||||||||
Recourse Limitation | ||||||||||||||||||
Currency | Lenders(1) | Borrowings | Wtd. Avg. Maturity(2) | Loan Count | Collateral(3) | Wtd. Avg. Maturity(4) | Wtd. Avg. | Range | ||||||||||
USD | $ | November 2027 | $ | November 2027 | ||||||||||||||
GBP | November 2028 | December 2028 | ||||||||||||||||
EUR | September 2027 | November 2027 | ||||||||||||||||
Others(5) | May 2029 | May 2029 | ||||||||||||||||
Total | $ | May 2028 | $ | May 2028 | ||||||||||||||
(1)Represents the number of lenders with fundings advanced in each respective currency, as well as the total number of
facility lenders. The total number of facility lenders includes two additional lenders that had no fundings advanced
as of March 31, 2026.
(2)Our secured debt agreements are generally term-matched to their underlying collateral. Therefore, the weighted-
average maturity is generally allocated based on the maximum maturity date of the collateral loans, assuming all
extension options are exercised by the borrower. In limited instances, the maturity date of the respective secured
credit facility is used.
(3)Represents the principal balance of the collateral loan assets and the carrying value of the collateral owned real
estate assets.
(4)Maximum maturity assumes all extension options are exercised by the borrower; however, our loans may be repaid
prior to such date.
(5)Includes Australian Dollar, Canadian Dollar, and Swedish Krona currencies.
The availability of funding under our secured credit facilities is based on the amount of approved collateral, which
collateral is proposed by us in our discretion and approved by the respective counterparty in its discretion, resulting in a
mutually agreed collateral portfolio construction. Certain structural elements of our secured credit facilities, including the
limitation on recourse to us and facility economics, are influenced by the specific collateral portfolio construction of each
facility, and therefore vary within and among the facilities.
36
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
thousands):
Three Months Ended March 31, 2026 | March 31, 2026 | |||||||||||||
Spread(1) | New Financings(2) | Total Borrowings | Wtd. Avg. All-in Cost(1)(3)(4) | Collateral(5) | Wtd. Avg. All-in Yield(1)(3) | Net Interest Margin(6) | ||||||||
+ 1.50% or less(7) | $ | $ | + | $ | + | + | ||||||||
+ 1.51% to + 1.75% | + | + | + | |||||||||||
+ 1.76% to + 2.00% | + | + | + | |||||||||||
+ 2.01% or more | + | + | + | |||||||||||
Total | $ | $ | + | $ | + | + | ||||||||
Year Ended December 31, 2025 | December 31, 2025 | |||||||||||||
Spread(1) | New Financings(2) | Total Borrowings | Wtd. Avg. All-in Cost(1)(3)(4) | Collateral(5) | Wtd. Avg. All-in Yield(1)(3) | Net Interest Margin(6) | ||||||||
+ 1.50% or less(7) | $ | $ | + | $ | + | + | ||||||||
+ 1.51% to + 1.75% | + | + | + | |||||||||||
+ 1.76% to + 2.00% | + | + | + | |||||||||||
+ 2.01% or more | + | + | + | |||||||||||
Total | $ | $ | + | $ | + | + | ||||||||
(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include
SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable.
(2)Represents the amount of new borrowings we closed during the three months ended March 31, 2026 and year ended
December 31, 2025, respectively.
(3)In addition to spread, the cost includes the associated deferred fees and expenses related to the respective
borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension
fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans
accounted for under the cost-recovery and nonaccrual methods, if any, and owned real estate assets.
(4)Represents the weighted-average all-in cost as of March 31, 2026 and December 31, 2025, respectively, and is not
necessarily indicative of the spread applicable to recent or future borrowings.
(5)Represents the principal balance of the collateral loan assets and the carrying value of the collateral owned real
estate assets.
(6)Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.
(7)Includes an interest rate swap with a $35.6 million notional amount that effectively converts our floating rate
liability to a fixed rate liability to align with the financed fixed rate loan exposure.
Our secured credit facilities generally permit us to increase or decrease the amount advanced against the pledged collateral
in our discretion within certain maximum/minimum amounts and frequency limitations. As of March 31, 2026, there was
an aggregate $438.7 million available to be drawn at our discretion under our credit facilities.
Financial Covenants
As of March 31, 2026, we are subject to the following financial covenants related to our secured debt and secured debt of
our unconsolidated entities: (i) our ratio of earnings before interest, taxes, depreciation, and amortization, or EBITDA, to
fixed charges, as defined in the agreements, shall be not less than 1.3 to 1.0; (ii) our tangible net worth, as defined in the
agreements, shall not be less than $2.9 billion as of each measurement date plus 75 % to 85 % of the net cash proceeds of
future equity issuances subsequent to March 31, 2026; (iii) cash liquidity shall not be less than the greater of (x) $10.0
million or (y) no more than 5 % of our recourse indebtedness; and (iv) our indebtedness shall not exceed 83.33 % of our
total assets. As of March 31, 2026 and December 31, 2025, we were in compliance with these covenants.
37
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
In April 2026, we closed an amendment to one of our secured debt agreements to reduce, effective as of June 30, 2026, the
required tangible net worth under such agreement from $2.9 billion to $2.8 billion, the same required minimum tangible net
worth applicable under all of our other secured debt agreements as of March 31, 2026, following amendments to certain of
those other agreements that closed during the three months ended March 31, 2026.
38
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
8. SECURITIZED DEBT OBLIGATIONS, NET
We have financed certain pools of our loans through CLOs and have also financed one of our loans through a securitization
vehicle, or the European Loan Securitization. The CLOs and the European Loan Securitization are consolidated in our
financial statements and have issued securitized debt obligations that are non-recourse to us. Refer to Note 19 for further
discussion of our CLOs and the European Loan Securitization. The following tables detail our securitized debt obligations
and the underlying collateral assets that are financed by our CLOs and the European Loan Securitization ($ in thousands):
March 31, 2026 | ||||||||||
Securitized Debt Obligations | Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2) | Term(3) | |||||
CLOs | ||||||||||
2026 FL6 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | $ | $ | + | August 2043 | ||||||
Underlying Collateral Assets | + | September 2029 | ||||||||
2025 FL5 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | + | October 2042 | ||||||||
Underlying Collateral Assets | + | February 2029 | ||||||||
2021 FL4 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | + | May 2038 | ||||||||
Underlying Collateral Assets | + | May 2027 | ||||||||
2020 FL2 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | + | February 2038 | ||||||||
Underlying Collateral Assets | + | January 2027 | ||||||||
Total CLOs | ||||||||||
Senior CLO Securities Outstanding | $ | $ | + | |||||||
Underlying Collateral Assets | + | |||||||||
European Loan Securitization | ||||||||||
Financing Provided | $ | $ | + | July 2030 | ||||||
Underlying Collateral Assets(4) | + | July 2030 | ||||||||
Total | ||||||||||
Senior CLO Securities Outstanding / Financing Provided(5) | $ | $ | + | |||||||
Underlying Collateral Assets | + | |||||||||
(1)The book value of underlying collateral assets excludes any applicable CECL reserves.
(2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan
origination costs, purchase discounts, and accrual of exit fees, while all-in cost includes the amortization of deferred
origination fees and financing costs. The weighted-average all-in yield and cost are expressed as a spread over the
relevant floating benchmark rates, which is SOFR for the CLOs and EURIBOR for the European Loan
Securitization. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any,
owned real estate assets, and cash from repayment proceeds held in certain of our CLOs that may be used to add
new eligible collateral assets.
(3)Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all
extension options are exercised by the borrower, and excludes owned real estate assets. Repayments of securitized
debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations
represents the rated final distribution date of the securitizations.
(4)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured
without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities
on our consolidated balance sheets.
(5)During the three months ended March 31, 2026, we recorded $34.7 million of interest expense related to our
securitized debt obligations.
39
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
December 31, 2025 | ||||||||||
Securitized Debt Obligations | Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2)(3) | Term(4) | |||||
CLOs | ||||||||||
2025 FL5 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | $ | $ | + | October 2042 | ||||||
Underlying Collateral Assets | + | October 2028 | ||||||||
2021 FL4 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | + | May 2038 | ||||||||
Underlying Collateral Assets | + | February 2027 | ||||||||
2020 FL2 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | + | February 2038 | ||||||||
Underlying Collateral Assets | + | January 2027 | ||||||||
Total CLOs | ||||||||||
Senior CLO Securities Outstanding | $ | $ | + | |||||||
Underlying Collateral Assets | + | |||||||||
European Loan Securitization | ||||||||||
Financing Provided | $ | $ | + | July 2030 | ||||||
Underlying Collateral Assets(5) | + | July 2030 | ||||||||
Total | ||||||||||
Senior CLO Securities Outstanding / Financing Provided(6) | $ | $ | + | |||||||
Underlying Collateral Assets | + | |||||||||
(1)The book value of underlying collateral assets excludes any applicable CECL reserves.
(2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan
origination costs, purchase discounts, and accrual of exit fees.
(3)The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates,
which is SOFR for the CLOs and EURIBOR for the European Loan Securitization. All-in yield excludes loans
accounted for under the cost-recovery and nonaccrual methods, if any, owned real estate assets, and cash from
repayment proceeds held in certain of our CLOs that may be used to add new eligible collateral assets.
(4)Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all
extension options are exercised by the borrower. Repayments of securitized debt obligations are tied to timing of the
related collateral loan asset repayments. The term of these obligations represents the rated final distribution date of
the securitizations.
(5)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured
without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities
on our consolidated balance sheets.
(6)During the year ended December 31, 2025, we recorded $140.0 million of interest expense related to our securitized
debt obligations.
40
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
9. ASSET-SPECIFIC DEBT, NET
March 31, 2026 | ||||||||||
Asset-Specific Debt | Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2) | Wtd. Avg. Term(3) | |||||
Financing provided | $ | $ | + | February 2030 | ||||||
Collateral assets | $ | $ | + | February 2030 | ||||||
December 31, 2025 | ||||||||||
Asset-Specific Debt | Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2) | Wtd. Avg. Term(3) | |||||
Financing provided | $ | $ | + | February 2030 | ||||||
Collateral assets | $ | $ | + | February 2030 | ||||||
(1)The book value of underlying collateral assets excludes any applicable CECL reserves.
(2)The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates,
which include SOFR and CORRA, as applicable. These floating rate loans and related liabilities are currency and
index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost
includes the amortization of deferred origination fees and financing costs.
(3)The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all
extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case
to the corresponding collateral loans.
10. TERM LOANS, NET
During the three months ended March 31, 2026, we borrowed an additional $770.8 million under a B-9 Term Loan, the
proceeds of which were used, among other things, to repay all $695.8 million in principal outstanding under the B-6 Term
Loan. The B-9 Term Loan bears interest at SOFR + 2.50 % and matures in December 2030.
balance sheets ($ in thousands):
Face Value | ||||||||||
Term Loans | March 31, 2026 | December 31, 2025 | Interest Rate(1) | All-in Cost(1)(2) | Maturity | |||||
B-6 Term Loan | + | + | December 10, 2030 | |||||||
B-7 Term Loan | + | + | May 9, 2029 | |||||||
B-8 Term Loan | + | + | December 19, 2032 | |||||||
B-9 Term Loan | + | + | December 10, 2030 | |||||||
Total face value | $ | $ | ||||||||
Deferred financing costs and unamortized discounts | ( | ( | ||||||||
Net book value | $ | $ | ||||||||
(1)The B-7 Term Loan and B-9 Term Loan borrowings are subject to a benchmark interest rate floor of 0.50
Term loans are indexed to one-month SOFR.
(2)Includes issue discount and transaction expenses that are amortized through interest expense over the life of the
applicable Term Loans.
The Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the aggregate initial principal
balance due in quarterly installments.
41
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cash coupon | $ | $ | |
Discount and issuance cost amortization | |||
Total interest expense | $ | $ | |
The Term Loans contain the financial covenant that our indebtedness shall not exceed 83.33
March 31, 2026 and December 31, 2025, we were in compliance with this covenant. Refer to Note 2 for further discussion
of our accounting policies for the Term Loans.
11. SENIOR SECURED NOTES, NET
balance sheets ($ in thousands):
Face Value | ||||||||||
Senior Secured Notes Issuance | March 31, 2026 | December 31, 2025 | Interest Rate | All-in Cost(1) | Maturity | |||||
October 2021 | $ | $ | January 15, 2027 | |||||||
December 2024 | (2) | December 1, 2029 | ||||||||
Total face value | $ | $ | ||||||||
Deferred financing costs and unamortized discounts | ( | ( | ||||||||
Hedging adjustments(3) | ||||||||||
Net book value | $ | $ | ||||||||
(1)Includes transaction expenses that are amortized through interest expense over the life of the Senior Secured Notes.
(2)Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts
our fixed rate exposure to a SOFR + 3.95 % floating rate exposure.
(3)Represents the fair value of an interest rate swap that we entered into to convert the fixed rate exposure of the
December 2024 Senior Secured Notes into floating rate. Refer to Note 13 for further discussion.
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cash coupon | $ | $ | |
Discount and issuance cost amortization | |||
Total interest expense | $ | $ | |
The Senior Secured Notes contain the financial covenant that our indebtedness shall not exceed 83.33
As of March 31, 2026 and December 31, 2025, we were in compliance with this covenant. Under certain circumstances, we
may, at our option, release all of the collateral securing our Senior Secured Notes, in which case we would also be required
to maintain a total unencumbered assets to total unsecured indebtedness ratio of 1.20 or greater. This covenant is not
currently in effect as the collateral securing our Senior Secured Notes has not been released.
42
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
12. CONVERTIBLE NOTES, NET
balance sheets ($ in thousands):
Face Value | ||||||||||||
Convertible Notes | March 31, 2026 | December 31, 2025 | Interest Rate | All-in Cost(1) | Conversion Price(2) | Maturity | ||||||
Face value | $ | $ | $ | March 15, 2027 | ||||||||
Deferred financing costs and unamortized discount | ( | ( | ||||||||||
Net book value | $ | $ | ||||||||||
(1)Includes issuance costs that are amortized through interest expense over the life of the Convertible Notes using the
effective interest method.
(2)Represents the price of class A common stock per share based on a conversion rate of 27.5702 for the Convertible
Notes. The conversion rate represents the number of shares of class A common stock issuable per $1,000 principal
amount of Convertible Notes. The cumulative dividend threshold has not been exceeded as of March 31, 2026.
Other than as provided by the optional redemption provisions with respect to our Convertible Notes, we may not redeem
the Convertible Notes prior to maturity. The Convertible Notes are convertible at the holders’ option into shares of our
class A common stock, only under specific circumstances, prior to the close of business on December 14, 2026 at the
applicable conversion rate in effect on the conversion date. Thereafter, the Convertible Notes are convertible at the option
of the holder at any time until the second scheduled trading day immediately preceding the maturity date. The last reported
sale price of our class A common stock of $19.15 on March 31, 2026, the last trading day in the three months ended
March 31, 2026, was less than the per share conversion price of the Convertible Notes.
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cash coupon | $ | $ | |
Discount and issuance cost amortization | |||
Total interest expense | $ | $ | |
Accrued interest payable for the Convertible Notes was $0.6 million and $4.3 million as of March 31, 2026 and
December 31, 2025, respectively. Refer to Note 2 for further discussion of our accounting policies for the Convertible
13. DERIVATIVE FINANCIAL INSTRUMENTS
The objective of our use of derivative financial instruments is to minimize the risks and/or costs associated with our
investments and/or financing transactions. These derivatives may or may not qualify as net investment, cash flow, or fair
value hedges under the hedge accounting requirements of ASC 815 – “Derivatives and Hedging.” Derivatives not
designated as hedges are not speculative and are used to manage our exposure to interest rate movements and other
identified risks. Refer to Note 2 for further discussion of the accounting for designated and non-designated hedges.
The use of derivative financial instruments involves certain risks, including the risk that the counterparties to these
contractual arrangements do not perform as agreed. To mitigate this risk, we only enter into derivative financial
instruments with counterparties that have appropriate credit ratings and are major financial institutions with which we and
our affiliates also have other financial relationships.
43
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Net Investment Hedges of Foreign Currency Risk
Certain of our international investments expose us to fluctuations in foreign interest rates and currency exchange rates.
These fluctuations may impact the value of our cash receipts and payments in terms of our functional currency, the U.S.
dollar. We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash
flows in terms of the U.S. dollar.
Designated Hedges of Foreign Currency Risk
foreign currency risk (notional amounts in thousands):
March 31, 2026 | December 31, 2025 | |||||||||
Foreign Currency Derivatives | Number of Instruments | Notional Amount | Foreign Currency Derivatives | Number of Instruments | Notional Amount | |||||
Buy USD / Sell SEK Forward | kr | Buy USD / Sell SEK Forward | kr | |||||||
Buy USD / Sell GBP Forward | £ | Buy USD / Sell GBP Forward | £ | |||||||
Buy USD / Sell EUR Forward | € | Buy USD / Sell EUR Forward | € | |||||||
Buy USD / Sell AUD Forward | A$ | Buy USD / Sell AUD Forward | A$ | |||||||
Buy USD / Sell CAD Forward | C$ | Buy USD / Sell CAD Forward | C$ | |||||||
Buy USD / Sell CHF Forward | CHF | Buy USD / Sell CHF Forward | CHF | |||||||
Non-designated Hedges of Foreign Currency Risk
currency risk (notional amounts in thousands):
March 31, 2026 | December 31, 2025 | |||||||||
Non-designated Hedges | Number of Instruments | Notional Amount | Non-designated Hedges | Number of Instruments | Notional Amount | |||||
Buy EUR / Sell USD Forward | € | Buy EUR / Sell USD Forward | € | |||||||
Buy USD / Sell EUR Forward | € | Buy USD / Sell EUR Forward | € | |||||||
Buy AUD / Sell USD Forward | A$ | Buy AUD / Sell USD Forward | A$ | |||||||
Buy USD / Sell AUD Forward | A$ | Buy USD / Sell AUD Forward | A$ | |||||||
Buy GBP / Sell USD Forward | £ | |||||||||
Buy USD / Sell GBP Forward | £ | |||||||||
Cash Flow Hedges of Interest Rate Risk
Certain of our financing transactions expose us to a fixed versus floating rate mismatch between our assets and liabilities.
We use derivative financial instruments, which include interest rate swaps (and may also include interest rate caps, interest
rate options, floors, and other interest rate derivative contracts) to hedge interest rate risk associated with our borrowings
where there is potential for an index mismatch.
44
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
risk (notional amounts in thousands):
March 31, 2026 | ||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Fixed Rate | Index | Maturity (Years) | |||||
Interest Rate Swaps | $ | SOFR | ||||||||
December 31, 2025 | ||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Fixed Rate | Index | Maturity (Years) | |||||
Interest Rate Swaps | $ | SOFR | ||||||||
Fair Value Hedges of Interest Rate Risk
Certain of our corporate financings expose us to fluctuations in the fair value of our outstanding fixed rate debt. We use
derivative financial instruments, which include interest rate swaps, to hedge interest rate risk associated with changes in the
fair value of our fixed rate debt. The changes in the value of the interest rate swap is recognized in earnings and offset the
corresponding changes in the fair value of the debt.
Designated Hedges of Interest Rate Risk
risk (notional amount in thousands):
March 31, 2026 | ||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Fixed Rate | Index | Maturity (Years) | |||||
Interest Rate Swaps | $ | SOFR | ||||||||
December 31, 2025 | ||||||||||
Interest Rate Derivatives | Number of Instruments | Notional Amount | Fixed Rate | Index | Maturity (Years) | |||||
Interest Rate Swaps | $ | SOFR | ||||||||
hedges ($ in thousands):
March 31, 2026 | ||||
Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included | Carrying Amount of the Hedged Assets/ Liabilities | Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount | ||
Senior secured notes, net | $ | $ | ||
December 31, 2025 | ||||
Line Item in the Consolidated Balance Sheets in which the Hedged Item is Included | Carrying Amount of the Hedged Assets/ Liabilities | Cumulative Amount of Fair Value Hedging Adjustment Included in Carrying Amount | ||
Senior secured notes, net | $ | $ | ||
45
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Financial Statement Impact of Hedges of Foreign Currency and Interest Rate Risks
($ in thousands):
Increase (Decrease) to Net Interest Income Recognized from Derivatives | ||||||
Three Months Ended March 31, | ||||||
Derivatives in Hedging Relationships | Location of Income (Expense) Recognized | 2026 | 2025 | |||
Designated Hedges | Interest Income(1) | $ | $ | |||
Designated Hedges | Interest Expense(2) | ( | ||||
Non-Designated Hedges | Interest Income(1) | ( | ||||
Non-Designated Hedges | Interest Expense(3) | |||||
Total | $ | $ | ||||
(1)Represents the forward points earned on our foreign currency forward contracts, which reflect the interest rate
differentials between the applicable base rate for our foreign currency investments and prevailing U.S. interest rates.
These forward contracts effectively convert the foreign currency rate exposure for such investments to
USD-equivalent interest rates.
(2)Represents the financial statement impact of proceeds (payments) from periodic settlements related to our interest
rate swap.
(3)Represents the spot rate movement in our non-designated foreign currency hedges, which are marked-to-market and
recognized in interest expense.
Fair Value Hedges
relationships ($ in thousands):
Three Months Ended March 31, | ||||
2026 | 2025 | |||
Total interest and related expenses presented in the consolidated statements of operations | $ | $ | ||
Gains (losses) on fair value hedging relationships | ||||
Total (loss) gain on derivative instruments | $( | $ | ||
Fair value basis adjustment on hedged items | ( | |||
Derivative settlements and accruals | ||||
Net gain on fair value hedging relationships(1) | $ | $ | ||
(1)Included within interest and related expenses presented in the consolidated statements of operations.
46
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Valuation and Other Comprehensive Income
Fair Value of Derivatives in an Asset Position(1) as of | Fair Value of Derivatives in a Liability Position(2) as of | |||||||
March 31, 2026 | December 31, 2025 | March 31, 2026 | December 31, 2025 | |||||
Derivatives designated as hedging instruments | ||||||||
Foreign exchange contracts | $ | $ | $ | $ | ||||
Interest rate derivatives | ||||||||
Total derivatives designated as hedging instruments | $ | $ | $ | $ | ||||
Derivatives not designated as hedging instruments | ||||||||
Foreign exchange contracts | $ | $ | $ | $ | ||||
Total derivatives not designated as hedging instruments | $ | $ | $ | $ | ||||
Total derivatives | $ | $ | $ | $ | ||||
(1)Included in other assets in our consolidated balance sheets.
(2)Included in other liabilities in our consolidated balance sheets.
comprehensive income and operations ($ in thousands):
Derivatives in Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | ||||||||
Three Months Ended March 31, | Location of Gain (Loss) Reclassified from Accumulated OCI into Income | Three Months Ended March 31, | ||||||||
2026 | 2025 | 2026 | 2025 | |||||||
Net Investment Hedges | ||||||||||
Foreign exchange contracts(1) | $ | $( | Interest Expense | $( | $ | |||||
Cash Flow Hedges | ||||||||||
Interest rate derivatives | Interest Expense(2) | |||||||||
Total | $ | $( | $( | $ | ||||||
(1)During the three months ended March 31, 2026 and 2025, we paid net cash settlements of $18.0 million and
received net cash settlements of $80.5 million on our foreign currency forward contracts respectively. Those
amounts are included as a component of accumulated other comprehensive income on our consolidated balance
sheets.
Credit–Risk Related Contingent Features
We have entered into agreements with certain of our derivative counterparties that contain provisions where if we were to
default on any of our indebtedness, including default where repayment of the indebtedness has not been accelerated by the
lender, we may also be declared in default on our derivative obligations. In addition, certain of our agreements with our
derivative counterparties require that we post collateral to secure net liability positions. As of March 31, 2026, we were in a
net asset position with two of our counterparties and in a net liability position with one counterparty related to our foreign
exchange hedges and had $7.0 million collateral posted with such counterparty. As of December 31, 2025, we were in a net
asset position with one of our counterparties and in a net liability position with our other two counterparties related to our
foreign exchange hedges and had $25.3 million of collateral posted with such counterparties.
47
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
14. EQUITY
Stock and Stock Equivalents
Authorized Capital
As of March 31, 2026 we had the authority to issue up to 500,000,000 shares of stock, consisting of 400,000,000 shares of
class A common stock and 100,000,000 shares of preferred stock. Subject to applicable NYSE listing requirements, our
board of directors is authorized to cause us to issue additional shares of authorized stock without stockholder approval. In
addition, to the extent not issued, currently authorized stock may be reclassified between class A common stock and
preferred stock. As of both March 31, 2026 and December 31, 2025, we did not
and outstanding.
Share Repurchase Program
In October 2025, our board of directors authorized the repurchase of up to $150.0 million of shares of our class A common
stock under our repurchase program. Repurchases may be made from time to time in open market transactions, in privately
negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1
under the Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors,
including legal requirements, price and economic and market conditions. The repurchase program may be changed,
suspended or discontinued at any time and does not have a specified expiration date.
During the three months ended March 31, 2026, we repurchased 43,765 shares of class A common stock at a weighted-
average price per share of $18.29 , for a total cost of $0.8 million. During the three months ended March 31, 2025, we
repurchased 1,792,836 shares of class A common stock at a weighted-average price per share of $17.63 , for a total cost of
$31.6 million. As of March 31, 2026, the amount remaining available for repurchases under the program was
$148.8 million.
Class A Common Stock and Deferred Stock Units
Holders of shares of our class A common stock are entitled to vote on all matters submitted to a vote of stockholders and
are entitled to receive dividends authorized by our board of directors and declared by us, in all cases subject to the rights of
the holders of shares of outstanding preferred stock, if any.
We also issue restricted class A common stock under our stock-based incentive plans. Refer to Note 17 for further
discussion of these long-term incentive plans. In addition to our class A common stock, we also issue deferred stock units
to certain members of our board of directors for services rendered. These deferred stock units are non-voting, but carry the
right to receive dividends in the form of additional deferred stock units in an amount equivalent to the cash dividends paid
to holders of shares of class A common stock. Each vested deferred stock unit is settled by delivery of one share of class A
common stock upon the non-employee director’s separation from service.
common stock and deferred stock units:
Three Months Ended March 31, | |||
Common Stock Outstanding(1) | 2026 | 2025 | |
Beginning balance | |||
Issuance of class A common stock(2) | |||
Repurchase of class A common stock | ( | ( | |
Issuance of restricted class A common stock, net(3) | |||
Issuance of deferred stock units | |||
Ending balance | |||
(1)Includes 348,222 and 310,108 deferred stock units held by members of our board of directors as of March 31, 2026
and 2025, respectively.
(2)Represents shares issued under our dividend reinvestment program during the three months ended March 31, 2025.
(3)Net of 22,341 and 12,408 shares of restricted class A common stock forfeited under our stock-based incentive plans
during the three months ended March 31, 2026 and 2025, respectively.
48
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Dividend Reinvestment and Direct Stock Purchase Plan
We have adopted a dividend reinvestment and direct stock purchase plan under which an aggregate of 10,000,000 shares of
class A common stock are available for sale. Under the dividend reinvestment component of the plan, our class A common
stockholders can designate all or a portion of their cash dividends to be reinvested in additional shares of class A common
stock. Such shares may, at our option, be newly issued shares from us, shares purchased by the plan administrator on the
open market, or a combination thereof. The direct stock purchase component of the plan allows stockholders and new
investors, subject to our approval, to purchase shares of class A common stock directly from us. During the three months
ended March 31, 2026, 8,263 shares of class A common stock were purchased on the open market by the plan
administrator under the dividend reinvestment component of the plan. During the three months ended March 31, 2025, we
issued 1,080 shares of class A common stock under the dividend reinvestment component of the plan. As of March 31,
2026, a total of 9,956,862 shares of class A common stock remained available under the dividend reinvestment and direct
stock purchase plan.
At the Market Stock Offering Program
As of March 31, 2026, we are party to seven equity distribution agreements, or ATM Agreements, pursuant to which we
may sell, from time to time, up to an aggregate sales price of $699.1 million of our class A common stock. Sales of class A
common stock made pursuant to our ATM Agreements may be made in negotiated transactions or transactions that are
deemed to be “at the market” offerings as defined in Rule 415 under the Securities Act of 1933, as amended. Actual sales
depend on a variety of factors including market conditions, the trading price of our class A common stock, our capital
needs, and our determination of the appropriate sources of funding to meet such needs. During the three months ended
March 31, 2026 or March 31, 2025, we did no
of March 31, 2026, shares of our class A common stock with an aggregate sales price of $480.9 million remained available
for issuance and sale under our ATM Agreements.
Dividends
We generally intend to distribute substantially all of our taxable income, which does not necessarily equal net income as
calculated in accordance with GAAP, to our stockholders each year to comply with the REIT provisions of the Internal
Revenue Code of 1986, as amended, or the Internal Revenue Code. Our dividend policy remains subject to revision at the
discretion of our board of directors. All distributions will be made at the discretion of our board of directors and will
depend upon our taxable income, our financial condition, our maintenance of REIT status, applicable law, and other factors
as our board of directors deems relevant.
On March 13, 2026, we declared a dividend of $0.47 per share, or $79.3 million in aggregate, that was paid on April 15,
2026 to stockholders of record as of March 31, 2026.
Three Months Ended March 31, | |||
2026 | 2025 | ||
Dividends declared per share of common stock | $ | $ | |
Class A common stock dividends declared | $ | $ | |
Deferred stock unit dividends declared | |||
Total dividends declared | $ | $ | |
Earnings Per Share
We calculate our basic and diluted earnings per share using the two-class method for all periods presented as the unvested
shares of our restricted class A common stock qualify as participating securities, as defined by GAAP. These restricted
shares have the same rights as our other shares of class A common stock, including participating in any dividends, and
therefore have been included in our basic and diluted net income per share calculation. The shares issuable under our
Convertible Notes are included in dilutive earnings per share using the if-converted method when the effect is not
antidilutive.
49
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
the weighted-average of both restricted and unrestricted class A common stock outstanding ($ in thousands, except per
share data):
Three Months Ended March 31, | |||
2026 | 2025 | ||
Basic and Diluted Earnings | |||
Net loss(1) | $( | $( | |
Weighted-average shares outstanding, basic and diluted(2) | |||
Per share amount, basic and diluted | $( | $( | |
(1)Represents net loss attributable to Blackstone Mortgage Trust, Inc.
(2)For both the three months ended March 31, 2026 and 2025, our Convertible Notes were no
calculation of diluted earnings per share, as the impact is antidilutive. Refer to Note 12 for further discussion of our
convertible notes.
Other Balance Sheet Items
Accumulated Other Comprehensive Income
As of March 31, 2026, total accumulated other comprehensive income was $7.9 million, representing $111.0 million of net
realized and unrealized gains related to changes in the fair value of derivative instruments, offset by $101.9 million of
cumulative unrealized currency translation adjustments on assets and liabilities denominated in foreign currencies and
$1.2 million of unrealized losses related to the changes in the fair value of derivative instruments held by unconsolidated
entities. As of December 31, 2025, total accumulated other comprehensive income was $12.1 million, primarily
representing $86.6 million of net realized and unrealized gains related to changes in the fair value of derivative instruments
offset by $73.6 million of cumulative unrealized currency translation adjustments on assets and liabilities denominated in
foreign currencies and $0.8 million of unrealized losses related to the changes in the fair value of derivative instruments
held by unconsolidated entities.
Non-Controlling Interests
The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily
Joint Venture that are not owned by us. A portion of our Multifamily Joint Venture’s consolidated equity and results of
operations are allocated to these non-controlling interests based on their pro rata ownership of our Multifamily Joint
Venture. As of March 31, 2026, our Multifamily Joint Venture’s total equity was $20.6 million, of which $17.5 million was
owned by us, and $3.1 million was allocated to non-controlling interests. As of December 31, 2025, our Multifamily Joint
Venture’s total equity was $36.5 million, of which $31.0 million was owned by us, and $5.5 million was allocated to non-
controlling interests.
15. OTHER EXPENSES
Our other expenses consist of the management and incentive fees we pay to our Manager and our general and
administrative expenses.
Management and Incentive Fees
Pursuant to a management agreement between our Manager and us, or our Management Agreement, our Manager earns a
base management fee in an amount equal to 1.50 % per annum multiplied by our Equity, as defined in the Management
Agreement. In addition, our Manager is entitled to an incentive fee in an amount equal to the product of (i) 20 % and (ii) the
excess of (a) our Core Earnings (as defined in our Management Agreement) for the previous 12-month period over (b) an
amount equal to 7.00 % per annum multiplied by our Equity, provided that our Core Earnings over the prior three-year
period is greater than zero . Core Earnings, as defined in our Management Agreement, is generally equal to our GAAP net
income (loss), including realized gains and losses not otherwise recognized in current period GAAP net income (loss), and
excluding (i) non-cash equity compensation expense, (ii) depreciation and amortization, (iii) unrealized gains (losses), (iv)
net income (loss) attributable to our legacy portfolio, (v) certain non-cash items, and (vi) incentive management fees.
50
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
During the three months ended March 31, 2026 and 2025, we incurred $14.8 million and $17.2 million, respectively, of
management fees payable to our Manager. During the three months ended March 31, 2026 and 2025, we did not
incentive fees payable to our Manager.
As of March 31, 2026 and December 31, 2025, we had accrued management fees payable to our Manager of $14.8 million
and $16.4 million, respectively.
General and Administrative Expenses
Three Months Ended March 31, | |||
2026 | 2025 | ||
Professional services | $ | $ | |
Operating and other costs | |||
Subtotal | |||
Non-cash compensation expenses | |||
Restricted class A common stock earned | |||
Director stock-based compensation | |||
Subtotal | |||
Total general and administrative expenses | $ | $ | |
16. INCOME TAXES
We have elected to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. We
generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any
net capital gain, in order for U.S. federal income tax not to apply to our earnings. To the extent that we satisfy this
distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income
tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual
amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal
tax laws.
Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal
Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to
the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S.
federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification
as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on
our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full
taxable years. As of March 31, 2026 and December 31, 2025, we were in compliance with all REIT requirements.
Securitization transactions could result in the creation of taxable mortgage pools for federal income tax purposes. As a
REIT, so long as we own 100% of the equity interests in a taxable mortgage pool, we generally would not be adversely
affected by the characterization of the securitization as a taxable mortgage pool. Certain categories of stockholders,
however, such as foreign stockholders eligible for treaty or other benefits, stockholders with net operating losses, and
certain tax-exempt stockholders that are subject to unrelated business income tax, or UBTI, could be subject to increased
taxes on a portion of their dividend income from us that is attributable to the taxable mortgage pool. We have not made
UBTI distributions to our common stockholders and do not intend to make such UBTI distributions in the future.
During the three months ended March 31, 2026 and 2025, we recorded a current income tax provision of $1.2 million and
$0.7 million, respectively, primarily related to activities of our U.S. and foreign taxable subsidiaries and various state and
local taxes. We did not have any deferred tax assets or liabilities as of March 31, 2026 or December 31, 2025.
We have net operating losses, or NOLs, generated by our predecessor business that may be carried forward and utilized in
current or future periods. As a result of our issuance of 25,875,000 shares of class A common stock in May 2013, the
availability of our NOLs is generally limited to $2.0 million per annum by change of control provisions promulgated by the
Internal Revenue Service with respect to the ownership of Blackstone Mortgage Trust. As of March 31, 2026, we had
estimated NOLs of $159.0 million that will expire in 2029, unless they are utilized by us prior to expiration. Previously, we
51
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
recorded a full valuation allowance against such NOLs as we expected that they would expire unutilized. However,
although uncertain, we may utilize a portion of NOLs prior to expiration. We do not expect the utilization of NOLs to have
a material impact on our consolidated financial statements. We have recorded a full valuation allowance against such NOLs
as it is probable that they will expire unutilized.
17. STOCK-BASED INCENTIVE PLANS
We are externally managed by our Manager and do not currently have any employees. However, as of March 31, 2026, our
Manager, certain individuals employed by an affiliate of our Manager, and certain members of our board of directors were
compensated, in part, through our issuance of stock-based instruments.
Under our two current stock incentive plans, a maximum of 10,400,000 shares of our class A common stock may be issued
to our Manager, our directors and officers, and certain employees of affiliates of our Manager. As of March 31, 2026, there
were 4,599,432 shares available under our current stock incentive plans.
average grant date fair value per share:
Restricted Class A Common Stock | Weighted-Average Grant Date Fair Value Per Share | ||
Balance as of December 31, 2025 | $ | ||
Granted | |||
Vested | ( | ||
Forfeited | ( | ||
Balance as of March 31, 2026 | $ |
These shares generally vest in installments over a period of three years , pursuant to the terms of the respective award
agreements and the terms of our current stock incentive plans. The 2,440,036 shares of restricted class A common stock
outstanding as of March 31, 2026 will vest as follows: 1,106,276 shares will vest in 2026; 870,389 shares will vest in 2027;
and 463,371 shares will vest in 2028. As of March 31, 2026, total unrecognized compensation cost relating to unvested
share-based compensation arrangements was $44.5 million based on the grant date fair value of shares granted. This cost is
expected to be recognized over a weighted-average period of 1.2 years from March 31, 2026.
18. FAIR VALUES
Assets and Liabilities Measured at Fair Value
March 31, 2026 | December 31, 2025 | ||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||
Assets | |||||||||||||||
Derivatives | $ | $ | $ | $ | $ | $ | $ | $ | |||||||
Debt securities | |||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ | $ | |||||||
Liabilities | |||||||||||||||
Derivatives | $ | $ | $ | $ | $ | $ | $ | $ | |||||||
This table excludes $101.3 million and $111.0 million of investments in unconsolidated entities that are measured at fair
value using net asset value as a practical expedient and not classified in the fair value hierarchy as of March 31, 2026 and
December 31, 2025, respectively. Refer to Note 5 for further information.
Refer to Note 2 for further discussion regarding fair value measurement.
52
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Fair Value of Financial Instruments
As discussed in Note 2, GAAP requires disclosure of fair value information about financial instruments, whether or not
recognized at fair value in the statement of financial position, for which it is practicable to estimate that value.
($ in thousands):
March 31, 2026 | December 31, 2025 | ||||||||||
Book Value | Face Amount | Fair Value | Book Value | Face Amount | Fair Value | ||||||
Financial assets | |||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | $ | |||||
Loans receivable, net | |||||||||||
Financial liabilities | |||||||||||
Secured debt, net | |||||||||||
Other secured debt(1) | |||||||||||
Securitized debt obligations, net | |||||||||||
Asset-specific debt, net | |||||||||||
Secured term loans, net | |||||||||||
Senior secured notes, net | |||||||||||
Convertible notes, net | |||||||||||
(1)Included within other liabilities on our consolidated balance sheets. See Note 6 for further information.
Estimates of fair value for cash and cash equivalents and convertible notes are measured using observable, quoted market
prices, or Level 1 inputs. Estimates of fair value for securitized debt obligations, the Term Loans, and the Senior Secured
Notes are measured using observable, quoted market prices, in inactive markets, or Level 2 inputs. All other fair value
significant estimates are measured using unobservable inputs, or Level 3 inputs. See Note 2 for further discussion regarding
fair value measurement of certain of our assets and liabilities.
19. VARIABLE INTEREST ENTITIES
We have financed a portion of our loans through the CLOs and the European Loan Securitization, all of which are VIEs.
We are the primary beneficiary of, and therefore consolidate, the CLOs and the European Loan Securitization on our
balance sheet as we (i) control the relevant interests of the CLOs and the European Loan Securitization that give us power
to direct the activities that most significantly affect the CLOs and the European Loan Securitization, and (ii) have the right
to receive benefits and obligation to absorb losses of the CLOs and the European Loan Securitization through the
subordinate interests we own.
During 2025, we modified three loans that included, among other changes, control over decision making at the respective
properties. Similarly, during 2024, we modified two other loans that included, among other changes, an equity interest in
and/or control over decision-making at the property. As a result of these modifications, our investments in these loans are
VIEs. As of March 31, 2026, we are the primary beneficiary of, and therefore consolidated the assets of these VIEs on our
balance sheet as we (i) have the power to direct the activities that most significantly affect the property, and (ii) have the
right to receive excess sale proceeds upon exit.
53
Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
March 31, 2026 | December 31, 2025 | ||
Assets | |||
Cash and cash equivalents | $ | $ | |
Loans receivable | |||
Current expected credit loss reserve | ( | ( | |
Loans receivable, net | |||
Owned real estate, net | |||
Other assets | |||
Total assets | $ | $ | |
Liabilities | |||
Securitized debt obligations, net | $ | $ | |
Other liabilities | |||
Total liabilities | $ | $ |
Assets held by these VIEs are restricted and can be used only to settle obligations of the VIEs, including the subordinate
interests of the securitized debt obligations owned by us. The liabilities of these VIEs are non-recourse to us and can only
be satisfied from the assets of the VIEs. The consolidation of these VIEs results in an increase in our gross assets,
liabilities, revenues and expenses; however, it does not affect our stockholders’ equity or net income. We are not obligated
20. TRANSACTIONS WITH RELATED PARTIES
Our Manager
We are managed by our Manager pursuant to the Management Agreement. The current term of the Management
Agreement expires on December 19, 2026, and it will be automatically renewed for a one-year term upon such date and
each anniversary thereafter unless earlier terminated.
As of March 31, 2026 and December 31, 2025, our consolidated balance sheets included $14.8 million and $16.4 million,
respectively, of accrued management fees payable to our Manager. During the three months ended March 31, 2026 and
2025, we paid management fees of $16.4 million and $18.5 million, respectively, to our Manager. We did not pay any
incentive fees to our Manager during the three months ended March 31, 2026 and 2025. In addition, during the three
months ended March 31, 2026 and 2025, we incurred expenses of $0.4 million and $0.3 million, respectively, that were
paid by our Manager and have been or will be reimbursed by us.
As of March 31, 2026, our Manager held 1,234,198 shares of unvested restricted class A common stock, which had an
aggregate grant date fair value of $25.2 million. These shares vest in installments over three years from the date of
issuance. During the three months ended March 31, 2026 and 2025, we recorded non-cash expenses related to shares held
by our Manager of $3.5 million and $3.6 million, respectively. Refer to Note 17 for further details on our restricted class A
common stock.
As of March 31, 2026, our Manager, its affiliates (including Blackstone and Blackstone-advised investment vehicles),
Blackstone employees, and our directors held an aggregate 13,840,717 shares, or 8.2 %, of our class A common stock, of
which 8,916,412 shares, or 5.3 %, were held by Blackstone and its subsidiaries. Additionally, our directors held 348,222 of
deferred stock units as of March 31, 2026. Certain of the parties listed above have in the past purchased or sold shares of
our class A common stock in open market transactions, and such parties may in the future purchase or sell additional shares
of our class A common stock and/or engage in derivatives transactions related to our class A common stock. Any such
transactions would be made in the sole discretion of the relevant party based on market conditions and other considerations
relevant to such parties.
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Affiliate Services
We have engaged certain portfolio companies owned by Blackstone-advised investment vehicles to provide, as applicable,
management, corporate support, and transaction support services. The following table details the costs incurred (refunded)
for these services ($ in thousands):
Three Months Ended March 31, | |||||
Primary Asset Class | 2026 | 2025 | |||
Perform Properties, LLC | Office | $ | $ | ||
Brio Real Estate Services, LLC, Brio Real Estate (UK) Ltd., and Brio Real Estate (AUS) Pty Ltd. | n/a | ||||
BRE Hotels & Resorts, LLC | Hospitality | ||||
Revantage Corporate Services, LLC and Revantage Global Services Europe S.à r.l. | n/a | ( | |||
LivCor, LLC | Multifamily | ||||
Total | $ | $ | |||
We have engaged other affiliates of our Manager to provide various services. The following table details the costs incurred
for these services ($ in thousands):
Three Months Ended March 31, | |||
2026 | 2025 | ||
Gryphon Mutual Property Americas IC(1) | $ | $ | |
Lexington National Land Services(2) | |||
Blackstone internal audit services | |||
Total | $ | $ | |
(1)In order to provide insurance for our owned real estate assets, we became a member of Gryphon Mutual Property
Americas IC, or Gryphon, a captive insurance company owned by us and other Blackstone-advised investment
vehicles. A Blackstone affiliate provides oversight and management services to Gryphon and receives fees based on
a percentage of premiums paid for such policies. The fees and expenses of Gryphon, including insurance premiums
and fees paid to its manager, are borne by us and the other Blackstone-advised investment vehicles that are members
of Gryphon pro rata based on insurance premiums paid for each member’s respective properties. During the three
months ended March 31, 2026 we did not make any payments to Gryphon for insurance costs. During the three
months ended March 31, 2025, we paid $0.2 million to Gryphon for insurance costs, inclusive of premiums, capital
surplus contributions, taxes, and our pro rata share of other expenses. Of this amount, $29 thousand was attributable
to the fee paid to a Blackstone affiliate to provide oversight and management services to Gryphon. The amounts
included in the table above reflect the amortization of the insurance expense over the relevant periods of the
respective policies.
(2)Lexington National Land Services, or LNLS, is a Blackstone affiliate that (i) acts as a title agent in facilitating and
issuing title insurance, (ii) provides title support services for title insurance underwriters, (iii) in certain
circumstances, provides courtesy title settlement services and (iv) acts as escrow agent in connection with certain
investments by Blackstone-advised vehicles, including us, Blackstone-advised investment vehicles and portfolio
companies owned by Blackstone-advised investment vehicles, affiliates and related parties, and third parties,
including, in certain cases, Blackstone’s borrowers. In exchange for such services, LNLS earns fees which would
have otherwise been paid to third parties. Blackstone receives distributions from LNLS in connection with
investments made by us based on its equity interest in LNLS. In each case, there will be no related expense offset to
us.
CT Investment Management Co., LLC, or CTIMCO, serves as the special servicer of all of our CLOs, and the Manager
serves as the collateral manager and benchmark agent for our FL6 and FL5 CLOs issued in the first quarter of 2026 and
2025, respectively. As of March 31, 2026, one of our assets was in special servicing under a CLO. CTIMCO and our
Manager have waived any fees that would be payable to a third party serving in such roles pursuant to the applicable
agreements, and no such fees have been paid or will become payable to CTIMCO or our Manager.
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
Other Transactions
During the three months ended March 31, 2026, we invested $133.8 million in one senior loan, $31.0 million in two
mezzanine loans to unaffiliated third parties, and $66.7 million in a new issuance of a debt security (see Note 6 for further
discussion) in which Blackstone-advised investment vehicles also invested at the same level of the capital structure on a
pari passu basis.
In the first quarter of 2026, Blackstone-advised investment vehicles acquired an aggregate $71.4 million participation in
our $770.8 million B-9 Term Loan. In the fourth quarter of 2025, Blackstone-advised investment vehicles acquired an
aggregate $63.0 million participation in our $700.0 million B-8 Term Loan. In the third quarter of 2025, Blackstone-
advised investment vehicles acquired an aggregate $33.0 million participation in our $453.1 million B-7 Term Loan. In the
second quarter of 2025, Blackstone-advised investment vehicles acquired an aggregate $83.9 million participation in our
$1.0 billion B-6 Term Loan, which has subsequently been repaid in full. All of these transactions were part of broad
syndications led by third-party banks, and were on terms equivalent to those of unaffiliated third parties. Blackstone
Securities Partners L.P., or BSP, an affiliate of our Manager, was engaged as a member of the syndicate for these
transactions. Our engagements of BSP are on terms equivalent to those of unaffiliated parties. See “—Affiliate Services”
for further information.
As part of broad syndications led by third-party banks, Blackstone-advised investment vehicles acquired an aggregate
$11.0 million of notes in our $1.0 billion FL6 CLO offering in the first quarter of 2026, and $75.0 million of notes in our
$1.0 billion FL5 CLO offering in the first quarter of 2025. Both of these transactions were on terms equivalent to those of
unaffiliated third parties.
In the fourth quarter of 2025, we made a $75.0 million capital commitment at the initial closing of a fund managed by
Blackstone Real Estate Debt Strategies, or BREDS, the BREDS-advised private fund, formed to invest in Core+ real estate
debt investments in the U.S. and Canada. Blackstone affiliates, including us, do not pay management fees or carried
interest with respect to their investments in the BREDS-advised private fund. Our capital commitment represented a
minority of the total capital commitments the BREDS-advised private fund had received as of March 31, 2026. As of
March 31, 2026, the BREDS-advised private fund had not called any capital or made any investments. To fund its future
investments, the BREDS-advised private fund will draw down on capital commitments made by its investors, including us,
on a pro rata basis.
In the second quarter of 2025, we entered into our Bank Loan Portfolio Joint Venture with a Blackstone-advised
investment vehicle that concurrently acquired a $1.4 billion portfolio of performing commercial mortgage loans in which
we made an equity investment of $57.6 million and our ownership interest was 29 %. In the third quarter of 2025, our Bank
Loan Portfolio Joint Venture acquired a $606.0 million portfolio of performing commercial mortgage loans in which we
made an equity investment of $44.7 million and our ownership interest was 50 %. In the fourth quarter of 2024, we entered
into our Net Lease Joint Venture with a Blackstone-advised investment vehicle to invest in triple net lease properties.
We do not consolidate our Bank Loan Portfolio Joint Venture, our Net Lease Joint Venture, or the BREDS-advised private
fund, as we do not have a controlling financial interest. As of March 31, 2026, the aggregate value of our equity investment
in our Bank Loan Portfolio Joint Venture was $101.3 million and our ownership interest was 35 %, and the aggregate value
of our equity investment in our Net Lease Joint Venture was $143.1 million and our ownership interest was 75 %. As of
March 31, 2026, we had not made an equity investment in the BREDS-advised private fund. We, these joint ventures, these
Blackstone-advised investment vehicles, and other Blackstone affiliates have engaged and may in the future engage in
certain investment, financing, derivative and/or hedging arrangements related to these unconsolidated entities.
During April 2026, following a short-term extension of its maturity date during the three months ended March 31, 2026,
modification (including, among other changes, an extension of the maturity date, a reduction in the contractual interest rate,
and a meaningful additional commitment and credit support from the borrower) were negotiated by our third-party co-
lenders. We continue to forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-
advised investment vehicles control the borrower.
21. COMMITMENTS AND CONTINGENCIES
Unfunded Commitments Under Loans Receivable
As of March 31, 2026, we had aggregate unfunded commitments of $1.2 billion across 52 loans receivable, and
$715.5 million of committed or identified financings for those commitments, resulting in net unfunded commitments of
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
$453.4 million. The unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs,
and interest and carry costs. Loan funding commitments are generally subject to certain conditions, including, without
limitation, the progress of capital projects, leasing, and cash flows at the properties securing our loans. Therefore, the exact
timing and amounts of such future loan fundings are uncertain and will depend on the current and future performance of
the underlying collateral assets. We expect to fund our loan commitments over the remaining term of the related loans,
which have a weighted-average future funding period of 1.8 years.
Principal Debt Repayments
Year | Secured Debt(1) | Asset-Specific Debt(1) | Term Loans(2) | Senior Secured Notes | Convertible Notes(3) | Other Secured Debt(4) | Total(5) | |||||||
2026 (remaining) | $ | $ | $ | $ | $ | $ | $ | |||||||
2027 | ||||||||||||||
2028 | ||||||||||||||
2029 | ||||||||||||||
2030 | ||||||||||||||
Thereafter | ||||||||||||||
Total obligation | $ | $ | $ | $ | $ | $ | $ |
(1)Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral.
Therefore, the allocation of payments under such agreements is generally allocated based on the maximum maturity
date of the collateral loans, assuming all extension options are exercised by the borrower. In limited instances, the
maturity date of the respective debt agreement is used.
(2)The Term Loans are partially amortizing, with an amount equal to 1.0 % per annum of the initial principal balance
due in quarterly installments. Refer to Note 10 for further details on our Term Loans.
(3)Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer
to Note 12 for further details on our Convertible Notes.
(4)Amounts are included in other liabilities on our consolidated balance sheets.
(5)Total does not include $2.9 billion of consolidated securitized debt obligations, as the satisfaction of these liabilities
will not require cash outlays from us.
Board of Directors’ Compensation
As of March 31, 2026, our seven non-employee directors are entitled to annual compensation of $210,000 each, of which
$95,000 is paid in cash and $115,000 is paid in the form of deferred stock units or, at their election, shares of restricted
common stock. As of March 31, 2026, the other two board members are employees of affiliates of our Manager who also
serve as executive officers and they are not compensated by us for their service as directors. In addition, (i) the lead
independent director receives additional annual cash compensation of $30,000 , (ii) the chairs of our audit, compensation,
and corporate governance committees receive additional annual cash compensation of $20,000 , $15,000 , and $10,000 ,
respectively, and (iii) the members of our audit and investment risk management committees receive additional annual cash
compensation of $10,000 and $7,500 , respectively.
Litigation
From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of
22. SEGMENT REPORTING
Operating segments are defined as components of a business that can earn revenues and incur expenses for which discrete
financial information is available that is evaluated on a regular basis by the chief operating decision maker, or CODM. Our
CODM is, collectively, our Chief Executive Officer and Chief Financial Officer, who decide how to allocate resources and
assess performance. A single management team reports to the CODM, who manages the entire business.
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Blackstone Mortgage Trust, Inc.
Notes to Consolidated Financial Statements (continued)
We have determined that we have one
which originates and acquires commercial mortgage loans and related investments.
Our CODM reviews, among other things, consolidated net income (loss) that is reported on the Consolidated Statements of
Operations to make decisions, allocate resources and assess performance and does not evaluate the net income (loss) from
any separate geography or product line. The measure of segment assets is reported on the Consolidated Balance Sheets as
total consolidated assets.
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ITEM 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
References herein to “Blackstone Mortgage Trust,” “Company,” “we,” “us,” or “our” refer to Blackstone Mortgage
Trust, Inc. and its subsidiaries unless the context specifically requires otherwise.
The following discussion and analysis of our financial condition and results of operations should be read in conjunction
with the unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on
Form 10-Q and with our Annual Report on Form 10-K for the year ended December 31, 2025. In addition to historical
data, this discussion and analysis contains forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the
Exchange Act, which reflect our current views with respect to, among other things, our business, operations and financial
performance. You can identify these forward-looking statements by the use of words such as “intend,” “goal,” “estimate,”
“expect,” “project,” “projections,” “plans,” “seeks,” “anticipates,” “should,” “could,” “may,” “designed to,”
“foreseeable future,” “believe,” “scheduled,” and similar expressions. Such forward- looking statements are subject to
various risks, uncertainties and assumptions. Our actual results or outcomes may differ materially from those in this
discussion and analysis as a result of various factors, including but not limited to those discussed in Item 1A. Risk Factors
in our Annual Report on Form 10-K for the year ended December 31, 2025 and elsewhere in this Quarterly Report on
Form 10-Q.
Introduction
Blackstone Mortgage Trust is a real estate finance company that originates, acquires, and manages senior loans and other
debt or credit-oriented investments collateralized by or relating to commercial real estate in North America, Europe, and
Australia. Our portfolio is composed primarily of senior loans secured by high-quality, institutional assets located in major
markets, and sponsored by experienced, well-capitalized real estate investment owners and operators. We finance our
investments in a variety of ways, including borrowing under secured credit facilities, issuing collateralized loan obligations,
or CLOs, other securitization transactions, syndicating senior loans and/or participations, and other forms of asset-level
financing, depending on our view of the most prudent financing option available for each of our investments. We are
externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a
real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol “BXMT.”
We benefit from the deep knowledge, experience and information advantages of our Manager, which is a part of
Blackstone Real Estate. Blackstone Real Estate was founded in 1991 and is the world’s largest owner of commercial real
estate. Blackstone Real Estate operates as one globally integrated business with investments in North America, Europe,
Asia and Latin America. In the United States, Blackstone Real Estate is one of the largest owners of rental housing,
industrial, office, hospitality and retail assets. The market-leading real estate expertise derived from the strength of the
Blackstone platform deeply informs our credit and underwriting process, and we believe it gives us the tools to manage the
assets in our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.
We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal
income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders
and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an
exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding
company and conduct our business primarily through our various subsidiaries.
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I. Key Financial Measures and Indicators
As a real estate finance company, we believe the key financial measures and indicators for our business are earnings per
share, dividends declared, Distributable Earnings, Distributable Earnings prior to realized gains and losses, and book value
per share. For the three months ended March 31, 2026, we recorded basic net loss per share of $0.04, declared a dividend
of $0.47 per share, reported $0.21 per share of Distributable Earnings, and reported $0.49 per share of Distributable
Earnings prior to realized gains and losses. In addition, our book value as of March 31, 2026 was $20.20 per share, which
is net of cumulative CECL reserves of $1.80 per share and accumulated depreciation and amortization of owned real estate
assets of $0.57 per share.
As further described below, Distributable Earnings and Distributable Earnings prior to realized gains and losses are
measures that are not prepared in accordance with accounting principles generally accepted in the United States of
America, or GAAP. Distributable Earnings and Distributable Earnings prior to realized gains and losses helps us to
evaluate our performance, excluding the effects of certain transactions and GAAP adjustments that we believe are not
necessarily indicative of our current investments and operations. In addition, Distributable Earnings and Distributable
Earnings prior to realized gains and losses are performance metrics we consider when declaring our dividends.
Earnings Per Share and Dividends Declared
The following table sets forth the calculation of basic net income (loss) per share and dividends declared per share ($ in
thousands, except per share data):
Three Months Ended | |||
March 31, 2026 | December 31, 2025 | ||
Net (loss) income(1) | $(6,297) | $39,560 | |
Weighted-average shares outstanding, basic | 169,078,373 | 168,167,576 | |
Net (loss) income per share, basic | $(0.04) | $0.24 | |
Dividends declared per share | $0.47 | $0.47 | |
(1)Represents net (loss) income attributable to Blackstone Mortgage Trust. Refer to Note 14 to our consolidated
financial statements for the calculation of diluted net (loss) income per share.
Distributable Earnings and Distributable Earnings Prior to Realized Gains and Losses
Distributable Earnings and Distributable Earnings prior to realized gains and losses are non-GAAP measures. We define
Distributable Earnings as GAAP net income (loss), including realized gains and losses not otherwise recognized in current
period GAAP net income (loss), and excluding (i) non-cash equity compensation expense, (ii) depreciation and
amortization, (iii) unrealized gains (losses), and (iv) certain non-cash items. Distributable Earnings may also be adjusted
from time to time to exclude one-time events pursuant to changes in GAAP and certain other non-cash charges as
determined by our Manager, subject to approval by a majority of our independent directors. Distributable Earnings mirrors
the terms of our management agreement between our Manager and us, or our Management Agreement, for purposes of
calculating our incentive fee expense. Therefore, Distributable Earnings prior to realized gains and losses is calculated net
of the incentive fee expense that would have been recognized if such realized gains or losses had not occurred.
Our CECL reserves have been excluded from Distributable Earnings consistent with other unrealized gains (losses)
pursuant to our existing policy for reporting Distributable Earnings. We expect to only recognize such potential credit
losses in Distributable Earnings if and when such amounts are realized and deemed non-recoverable upon a realization
event. This is generally at the time a loan is repaid, or in the case of foreclosure, when the underlying asset is sold, but
realization and non-recoverability may also be concluded if, in our determination, it is nearly certain that all amounts due
will not be collected. The timing of any such credit loss realization in our Distributable Earnings may differ materially from
the timing of CECL reserves or charge-offs in our consolidated financial statements prepared in accordance with GAAP.
The realized loss amount reflected in Distributable Earnings will equal the difference between the cash received, or
expected to be received, and the book value of the asset, and is reflective of our economic experience as it relates to the
ultimate realization of the loan.
We believe that Distributable Earnings provides meaningful information to consider in addition to our net income (loss)
and cash flow from operating activities determined in accordance with GAAP. We believe Distributable Earnings is a
useful financial metric for existing and potential future holders of our class A common stock as historically, over time,
60
Distributable Earnings has been a strong indicator of our dividends per share. As a REIT, we generally must distribute
annually at least 90% of our net taxable income, subject to certain adjustments, and therefore we believe our dividends are
one of the principal reasons stockholders may invest in our class A common stock. Refer to Note 16 to our consolidated
financial statements for further discussion of our distribution requirements as a REIT. Further, Distributable Earnings helps
us to evaluate our performance, excluding the effects of certain transactions and GAAP adjustments that we believe are not
necessarily indicative of our current investment portfolio and operations, and is a performance metric we consider when
declaring our dividends.
Furthermore, we believe it is useful to present Distributable Earnings prior to realized gains and losses, which include but
are not limited to charge-offs of CECL reserves, to reflect our direct operating results and help existing and potential future
holders of our class A common stock assess the performance of our business excluding such realized gains or losses. We
may make similar adjustments with respect to other types of investments, if and when applicable transactions occur. During
the period from the first quarter of 2024 to the fourth quarter of 2025, we reported this metric as Distributable Earnings
prior to charge-offs of CECL reserves, as the only applicable realized gains or losses during such period were charge-offs
of CECL reserves. We utilize Distributable Earnings prior to realized gains and losses as an additional performance metric
to consider when declaring our dividends. Distributable Earnings mirrors the terms of our Management Agreement for
purposes of calculating our incentive fee expense. Therefore, Distributable Earnings prior to realized gains and losses is
calculated net of the incentive fee expense that would have been recognized if such realized gains or losses had not
occurred.
Distributable Earnings and Distributable Earnings prior to realized gains and losses do not represent net income (loss) or
cash generated from operating activities and should not be considered as alternatives to GAAP net income (loss), or
indicators of our GAAP cash flows from operations, measures of our liquidity, or indicators of funds available for our cash
needs. In addition, our methodology for calculating Distributable Earnings and Distributable Earnings prior to realized
gains and losses may differ from the methodologies employed by other companies to calculate the same or similar
supplemental performance measures, and accordingly, our reported Distributable Earnings and Distributable Earnings prior
to realized gains and losses may not be comparable to similar metrics reported by other companies.
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The following table provides a reconciliation of Distributable Earnings and Distributable Earnings prior to realized gains
and losses to GAAP net income (loss) ($ in thousands, except per share data):
Three Months Ended | |||
March 31, 2026 | December 31, 2025 | ||
Net (loss) income(1) | $(6,297) | $39,560 | |
Charge-offs of CECL reserves(2) | (46,451) | (433,924) | |
Increase in CECL reserves | 55,055 | 18,375 | |
Depreciation and amortization of owned real estate(3) | 21,717 | 21,380 | |
Adjustment to realized loss on disposition of owned real estate(4) | (1,497) | — | |
Non-cash compensation expense | 6,687 | 6,699 | |
Realized hedging and foreign currency gain (loss), net(5) | 4 | (25) | |
Allocable share of adjustments related to unconsolidated entities(6) | 6,380 | (8) | |
Cash income from Agency Multifamily Lending Partnership, net(7) | 29 | 29 | |
Adjustments attributable to non-controlling interests, net | 191 | (1) | |
Other items | (8) | (39) | |
Distributable Earnings | $35,810 | $(347,954) | |
Charge-offs of CECL reserves(2) | 46,451 | 433,924 | |
GAAP realized loss on disposition of owned real estate(8) | 160 | — | |
Adjustment to realized loss on disposition of owned real estate(4) | 1,497 | — | |
Adjustments attributable to non-controlling interests | (249) | ||
Distributable Earnings prior to realized gains and losses | $83,669 | $85,970 | |
Weighted-average shares outstanding, basic(9) | 169,078,373 | 168,167,576 | |
Distributable Earnings per share, basic | $0.21 | $(2.07) | |
Distributable Earnings per share, basic, prior to realized gains and losses | $0.49 | $0.51 | |
(1)Represents net (loss) income attributable to Blackstone Mortgage Trust.
(2)Represents realized losses related to loan principal amounts deemed non-recoverable.
(3)Represents depreciation of owned real estate assets and amortization of intangible real estate assets and liabilities.
(4)Represents an adjustment to the realized loss on the sale of a property held at depreciated cost. Because depreciation
and amortization is a non-cash expense that is excluded from Distributable Earnings, GAAP gains upon sale of a
property are higher, and GAAP losses are lower, than the respective realized amounts reflected in Distributable
Earnings. For Distributable Earnings, the amount is calculated as net sales proceeds less the property’s carrying
value prior to depreciation and amortization.
(5)Represents realized losses on the repatriation of unhedged foreign currency. These amounts were not included in
GAAP net (loss) income, but rather as a component of other comprehensive income in our consolidated financial
statements.
(6)Allocable share of adjustments related to unconsolidated entities for the three months ended March 31, 2026 reflects
our share of non-cash items such as (i) $3.2 million of unrealized losses recorded by such unconsolidated entities,
(ii) $3.1 million of depreciation and amortization, and (iii) related adjustments for realized gains, if any. For the
three months ended December 31, 2025, reflects our share of non-cash items such as (i) $(2.0) million of unrealized
gains recorded by such unconsolidated entities, (ii) $2.0 million of depreciation and amortization, and (iii) related
adjustments for realized gains, if any.
(7)Represents (i) the non-cash income recognized under GAAP related to our Agency Multifamily Lending
Partnership, in which we receive a portion of origination, servicing, and other fees for loans we refer to MTRCC for
origination, offset by the related loss-sharing obligation accruals and (ii) the cash received related to such income
previously recognized under GAAP. Refer to Note 2 to our consolidated financial statements for further information
on our Agency Multifamily Lending Partnership.
(8)Represents the amount included on our consolidated statements of operations.
(9)The weighted-average shares outstanding, basic, exclude shares issuable from a potential conversion of our
Convertible Notes then outstanding. Consistent with the treatment of other unrealized adjustments to Distributable
Earnings, these potentially issuable shares are excluded until a conversion occurs. Refer to Note 14 to our
consolidated financial statements for the calculation of diluted net income per share.
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Book Value Per Share
The following table calculates our book value per share ($ in thousands, except per share data):
March 31, 2026 | December 31, 2025 | ||
Stockholders’ equity | $3,414,960 | $3,498,910 | |
Shares | |||
Class A common stock | 168,683,520 | 168,259,023 | |
Deferred stock units | 348,222 | 340,029 | |
Total outstanding | 169,031,742 | 168,599,052 | |
Book value per share(1) | $20.20 | $20.75 |
(1)The book value per share excludes shares issuable from a potential conversion of our Convertible Notes then
outstanding. Refer to Note 14 to our consolidated financial statements for the calculation of diluted net income per
share.
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II. Investments
Investment Portfolio
Our Investment Portfolio consists of our Loan Portfolio, our investments in our Bank Loan Portfolio Joint Venture and Net
Lease Joint Venture, our owned real estate assets, and our investments in debt securities. The chart below details the
composition of our Investment Portfolio as of March 31, 2026:
Investment Portfolio(1)(2)(3)
Included in our Loan Portfolio(4)
______________
(1)Our Investment Portfolio reflects the gross amount of our investments as of March 31, 2026, which consists of (i)
our Loan Portfolio, which represents net book value less total loans receivable CECL reserves, (ii) our share of the
carrying value of investments held by our Net Lease Joint Venture, (iii) our share of the fair value of the loans held
by our Bank Loan Portfolio Joint Venture, (iv) the aggregate carrying value of our owned real estate assets, and (v)
the fair value of our investments in debt securities.
(2)Assets in our Loan Portfolio with multiple components are proportioned into the relevant property types based on
the allocated value of each property type.
(3)Investment types that represent less than 1% of our Investment Portfolio are excluded from the chart.
(4)Represents the types of properties securing the loans in our Loan Portfolio.
Refer to section VII of this Item 2 for details of our Loan Portfolio, on a loan-by-loan basis.
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Loan Portfolio
Loan Originations
During the three months ended March 31, 2026, we originated or acquired $274.9 million of loans, inclusive of additional
commitments made under existing loans.
Loan Portfolio Activity
During the three months ended March 31, 2026, loan fundings totaled $295.9 million and loan repayments and sales totaled
$630.9 million.
The following table details our loan portfolio activity ($ in thousands):
Three Months Ended March 31, 2026 | |
Loan fundings(1) | $295,932 |
Loan repayments and sales(1) | (630,932) |
Total net repayments | $(335,000) |
(1)Excludes amounts for loans held by our Bank Loan Portfolio Joint Venture, which are included in investments in
unconsolidated entities on our consolidated balance sheets.
The following table details overall statistics for our Loan Portfolio as of March 31, 2026 ($ in thousands):
March 31, 2026 | |
Number of loans | 130 |
Principal balance | $17,639,430 |
Net book value | $17,266,346 |
Unfunded loan commitments(1) | $1,168,941 |
Weighted-average cash coupon(2) | + 3.23% |
Weighted-average all-in yield(2) | + 3.46% |
Weighted-average maximum maturity (years)(3) | 2.4 |
Origination loan-to-value (LTV)(4) | 65% |
(1)Unfunded commitments will primarily be funded to finance our borrowers’ construction or development of real
estate-related assets, capital improvements of existing assets, or lease-related expenditures. These commitments will
generally be funded over the term of each loan, subject in certain cases to an expiration date.
(2)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark
rates, which include SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable to each loan. As of
March 31, 2026, 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to SOFR.
The remaining 3% of our loans by principal balance earned a fixed rate of interest.
(3)Maximum maturity assumes all extension options are exercised by the borrower; however, our loans and other
investments may be repaid prior to such date. Excludes loans accounted for under the cost-recovery and nonaccrual
methods, if any. As of March 31, 2026, 41% of our loans by principal balance were subject to yield maintenance or
other prepayment restrictions and 59% were open to repayment by the borrower without penalty.
(4)Based on LTV as of the dates loans were originated or acquired by us, excluding any loans that are impaired.
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The following table details the index rate floors for our Loan Portfolio as of March 31, 2026 ($ in thousands):
Loan Portfolio Principal Balance | ||||||
Index Rate Floors | USD | Non-USD(1) | Total | |||
Fixed Rate | $397,337 | $134,916 | $532,253 | |||
0.00% or no floor(2) | 731,463 | 4,614,027 | 5,345,490 | |||
0.01% to 1.00% floor | 1,636,260 | 1,152,196 | 2,788,456 | |||
1.01% to 2.00% floor | 929,990 | 1,711,218 | 2,641,208 | |||
2.01% to 3.00% floor | 4,764,518 | 364,885 | 5,129,403 | |||
3.01% or more floor | 951,506 | 251,114 | 1,202,620 | |||
Total(3) | $9,411,074 | $8,228,356 | $17,639,430 | |||
(1)Includes Euro, British Pound Sterling, Swedish Krona, Australian Dollar, and Canadian Dollar currencies.
(2)Includes all impaired loans.
(3)As of March 31, 2026, the weighted-average index rate floor of our floating-rate Loan Portfolio principal balance
was 1.40%. Excluding 0.0% index rate floors and loans with no floor, the weighted-average index rate floor was
2.06%.
The following table details the floating benchmark rates for our Loan Portfolio as of March 31, 2026 (Loan Portfolio
principal balance amounts in thousands):
Loan Count | Currency | Loan Portfolio Principal Balance | Floating Rate Index(1) | Cash Coupon(2) | All-in Yield(2) | |||||
93 | $ | $9,411,074 | SOFR | + 3.11% | + 3.32% | |||||
19 | £ | £2,680,011 | SONIA | + 3.33% | + 3.46% | |||||
12 | € | €2,234,422 | EURIBOR | + 2.86% | + 3.27% | |||||
6 | Various | $2,102,077 | Other(3) | + 4.04% | + 4.26% | |||||
130 | $17,639,430 | + 3.23% | + 3.46% |
(1)We use foreign currency forward contracts to protect the value or fix the amount of certain investments or cash
flows in terms of the U.S. dollar. We earn forward points on our forward contracts that reflect the interest rate
differentials between the applicable base rate for our foreign currency investments and prevailing U.S. interest rates.
These forward contracts effectively convert the foreign currency rate exposure for such investments to USD-
equivalent interest rates.
(2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan
origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the
cost-recovery and nonaccrual methods, if any.
(3)Includes floating rate loans indexed to STIBOR, CORRA, and BBSY indices.
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The charts below detail the geographic distribution and types of properties securing our Loan Portfolio, as of March 31,
2026:
Geographic Diversification
(Net Loan Exposure)(1)
Collateral Diversification
(Net Loan Exposure)(1)(2)
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2026,
which is our principal balance net of (i) $961.1 million of asset-specific debt, (ii) $20.3 million of cost-recovery
proceeds, and (iii) our total loans receivable CECL reserve of $291.6 million. Our asset-specific debt is structurally
non-recourse and term-matched to the corresponding collateral loans. Geographic locations that represent less than
1% of net loan exposure are excluded from the chart.
(2)Assets with multiple components are proportioned into the relevant property types based on the allocated value of
each property type.
Refer to section VII of this Item 2 for details of our loan portfolio, on a loan-by-loan basis.
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Portfolio Management
As of March 31, 2026, 98% of our loans, based on net loan exposure, were performing with risk ratings of “1” through “4,”
and the remaining 2% were impaired with a risk rating of “5.” As of March 31, 2026, two of our performing loans with an
aggregate amortized cost basis of $156.7 million were in default. With respect to one of these loans, the default was a
technical default as a result of the non-payment of an extension fee, the loan was not past its maturity date and was current
on its interest payments. The other loan was in payment default and was less than 90 days past due on its interest payment.
Both of these loans had a risk rating of “4.” All other borrowers under performing loans were in compliance with the
applicable contractual terms of each respective loan, including any required payment of interest. We believe this
demonstrates the overall strength of our loan portfolio and the commitment and financial wherewithal of our borrowers
generally, which are primarily affiliated with large real estate private equity funds and other strong, well-capitalized, and
experienced sponsors.
We maintain a robust asset management relationship with our borrowers and utilize these relationships to maximize the
performance of our portfolio, including during periods of volatility. We believe that we benefit from these relationships and
from our long-standing core business model of originating senior loans collateralized by large assets in major markets with
experienced, well-capitalized institutional sponsors. While we believe the principal amounts of our loans are generally
adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of
certain investments. As of March 31, 2026, we had an aggregate $84.9 million asset-specific CECL reserve related to seven
of our loans receivable, with an aggregate amortized cost basis of $372.2 million, net of cost-recovery proceeds. This
CECL reserve was recorded based on our estimation of the fair value of each of the loan's underlying collateral as of
March 31, 2026.
We benefit from the deep knowledge, experience and information advantages of our Manager, which is a part of
Blackstone Real Estate. Blackstone Real Estate was founded in 1991 and is the world’s largest owner of commercial real
estate with investments in North America, Europe, Asia and Latin America. In the United States, Blackstone Real Estate is
one of the largest owners of rental housing, industrial, office, hospitality and retail assets.
As discussed in Note 2 to our consolidated financial statements, we perform a quarterly review of our loan portfolio, assess
the performance of each loan, and assign it a risk rating between “1” and “5”, from less risk to greater risk. As of
March 31, 2026, our loan portfolio had a weighted-average risk rating of 3.0, based on net loan exposure.
The following table allocates the net book value and net loan exposure balances based on our internal risk ratings as of
March 31, 2026 ($ in thousands):
March 31, 2026 | ||||||
Risk Rating | Number of Loans | Net Book Value | Net Loan Exposure(1) | |||
1 | 2 | $114,420 | $114,095 | |||
2 | 20 | 2,948,977 | 2,778,681 | |||
3 | 84 | 11,478,398 | 10,646,589 | |||
4 | 17 | 2,643,985 | 2,541,297 | |||
5 | 7 | 372,156 | 285,822 | |||
Loans receivable | 130 | $17,557,936 | $16,366,484 | |||
CECL reserve | (291,590) | |||||
Loans receivable, net | $17,266,346 | |||||
(1)Net loan exposure reflects the amount of each loan that is subject to risk of credit loss to us as of March 31, 2026,
which is our principal balance net of (i) $961.1 million of asset-specific debt, (ii) $20.3 million of cost-recovery
proceeds, and (iii) our total loans receivable CECL reserve of $291.6 million. Our asset-specific debt is structurally
non-recourse and term-matched to the corresponding collateral loans.
Current Expected Credit Loss Reserve
The CECL reserves required by GAAP reflect our current estimate of potential credit losses related to our loans and notes
receivable included in our consolidated balance sheets. Other than a few narrow exceptions, GAAP requires that all
financial instruments subject to the CECL model have some amount of loss reserve to reflect the principle underlying the
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CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate
capital, or other mitigating factors.
During the three months ended March 31, 2026, we recorded a net increase of $7.2 million in the CECL reserves against
our loans receivable portfolio, primarily driven by a $9.6 million increase in our general CECL reserve partially offset by a
$2.4 million decrease in our asset-specific CECL reserve, bringing our total loans receivable CECL reserves to
$291.6 million as of March 31, 2026. The increase in our general CECL reserve was primarily driven by new loan
originations. The decrease in our asset-specific reserve was driven by charge-offs of $46.5 million primarily related to the
resolution of one previously impaired loan as a result of our acquisition of title through a foreclosure of title to a hospitality
collateral property located in San Francisco, CA, which is now included on our consolidated balance sheet as an owned real
estate asset. This was largely offset by additions to our asset-specific CECL reserve related to two additional loans with a
total amortized cost basis of $284.8 million that were impaired during the three months ended March 31, 2026. The income
accrual was suspended on the two newly impaired loans, as the recovery of income and principal was doubtful. During the
three months ended March 31, 2026, we recorded $1.4 million of interest income on these loans.
As of March 31, 2026, we had an aggregate $84.9 million asset-specific CECL reserve related to seven of our loans
receivable, with a total amortized cost basis of $372.2 million, net of cost-recovery proceeds. Impairments are each
determined individually as a result of changes in the specific credit quality factors for each such loan. These factors
included, among others, (i) the underlying collateral performance, (ii) discussions with the borrower, (iii) borrower events
of default, and (iv) other facts that impact the borrower’s ability to pay the contractual amounts due under the terms of the
loan. This asset-specific CECL reserve was recorded based on our estimation of the fair value of each loan’s underlying
collateral as of March 31, 2026.
No income was recorded on our impaired loans subsequent to determining that they were impaired. During the three
months ended March 31, 2026, we received an aggregate $0.5 million of cash proceeds from such loans that were applied
as a reduction to the amortized cost basis of each respective loan.
Refer to Note 2 to our consolidated financial statements for further discussion of our policies on revenue recognition and
our CECL reserves.
Owned Real Estate
As part of our portfolio management strategy to maximize economic outcomes, we may hold certain owned real estate
assets, resulting from transactions in which we assume legal title, physical possession, or control of the collateral
underlying a loan through a foreclosure, a deed-in-lieu of foreclosure transaction, or a loan modification in which we
receive an equity interest in and/or control over decision-making at the property. As of March 31, 2026, we had 13 owned
real estate assets with an aggregate carrying value of $1.3 billion.
The following table provides details of our owned real estate asset as of March 31, 2026 ($ in thousands):
Acquisition Date | Location | Property Type | Acquisition Date Fair Value | SQFT / Units / Keys | ||||||
1 | September 2025 | New York, NY | Hospitality | $228,253 | 933 keys | |||||
2 | December 2024 | San Francisco, CA | Hospitality | 201,530 | 686 keys | |||||
3 | December 2024 | El Segundo, CA | Office | 145,363 | 494,532 sqft | |||||
4 | December 2025 | New York, NY | Office | 133,313 | 709,204 sqft | |||||
5 | September 2025 | Atlanta, GA | Office | 132,974 | 1,184,916 sqft | |||||
6 | November 2025 | Denver, CO | Office | 114,748 | 538,179 sqft | |||||
7 | October 2024 | Washington, DC | Office | 107,016 | 892,480 sqft | |||||
8 | September 2024 | Burlington, MA | Office | 64,628 | 379,018 sqft | |||||
9 | March 2024 | Mountain View, CA | Office | 60,203 | 150,507 sqft | |||||
10 | February 2025 | Chicago, IL | Office | 45,045 | 517,115 sqft | |||||
11 | March 2026 | San Francisco, CA | Hospitality | 41,082 | 459 keys | |||||
12 | December 2024 | Denver, CO | Office | 33,337 | 170,304 sqft | |||||
13 | July 2024 | San Antonio, TX | Multifamily | 17,491 | 198 units | |||||
$1,324,983 |
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Bank Loan Portfolio Joint Venture
In the second quarter of 2025, we entered into a joint venture with a Blackstone-advised investment vehicle to acquire
portfolios of performing commercial mortgage loans, or our Bank Loan Portfolio Joint Venture. In the second quarter of
2025, the Bank Loan Portfolio Joint Venture acquired a $1.4 billion portfolio of 171 performing senior commercial real
estate loans from a regional bank. The loans are secured primarily by retail and multifamily properties located across
various markets in the Mid-Atlantic region, are primarily fixed rate, and were acquired at a discount to par. In the third
quarter of 2025, the Bank Loan Portfolio Joint Venture acquired a $606.0 million portfolio of 425 performing senior
commercial real estate loans from a regional bank. The loans are secured primarily by net lease retail assets located
throughout the United States, are fixed rate, and were acquired at a discount to par. We have an aggregate 35% ownership
interest in the joint venture as of March 31, 2026. As of March 31, 2026, our share of the fair value of the loans held by our
Bank Loan Portfolio Joint Venture was $553.4 million.
Our Bank Loan Portfolio Joint Venture is recorded on our consolidated balance sheets as an investment in unconsolidated
entities. As of March 31, 2026, our investment in the joint venture totaled $101.3 million. During the three months ended
March 31, 2026, we did not make any contributions to the joint venture, received $10.6 million of distributions, and
recorded $0.9 million of income from unconsolidated entities in our consolidated statements of operations.
Net Lease Joint Venture
In the fourth quarter of 2024, we entered into a joint venture with a Blackstone-advised investment vehicle to invest in
triple net lease properties, or our Net Lease Joint Venture. Our investment in the joint venture is recorded on our
consolidated balance sheets as an investment in unconsolidated entities. As of March 31, 2026, our investment in
unconsolidated entities related to the joint venture totaled $143.1 million. During the three months ended March 31, 2026,
we contributed $58.9 million to the joint venture, received $22.4 million of distributions, and recorded $0.4 million of
income from unconsolidated entities in our consolidated statements of operations, inclusive of $3.1 million of depreciation
and amortization expense. We have an aggregate 75% ownership interest in the joint venture as of March 31, 2026. As of
March 31, 2026, our share of the carrying value of investments held by our Net Lease Joint Venture was $515.6 million.
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The following table details the tenant industries and the geographic location of the assets held by our Net Lease Joint
Venture as of March 31, 2026:
Tenant Industry | Number of Properties | % of Annualized Base Rent | ||
Early Childhood Education | 40 | 21% | ||
Restaurants - Quick Service | 68 | 19 | ||
Car Washes | 26 | 18 | ||
Automotive Service | 34 | 13 | ||
Pet Care | 37 | 9 | ||
Medical / Dental | 17 | 8 | ||
Home Improvement | 9 | 4 | ||
Convenience Stores | 14 | 3 | ||
Other Retail | 2 | 1 | ||
Wholesale Trade | 1 | 1 | ||
Grocery | 3 | 1 | ||
Industrial | 2 | 1 | ||
Casual Dining | 5 | 1 | ||
Other Services | 2 | — | ||
Total | 260 | 100% | ||
State | Number of Properties | % of Annualized Base Rent | ||
Florida | 26 | 16% | ||
Texas | 30 | 14 | ||
Illinois | 26 | 9 | ||
Georgia | 15 | 7 | ||
Missouri | 16 | 6 | ||
Minnesota | 17 | 6 | ||
Alabama | 14 | 4 | ||
Arizona | 7 | 4 | ||
Oklahoma | 13 | 3 | ||
Wisconsin | 13 | 3 | ||
All other (25 states) | 83 | 28 | ||
260 | 100% |
As of March 31, 2026, our Net Lease Joint Venture’s leases had a weighted average remaining lease term of over 15 years
(based on annualized base rent), with weighted average annual rent increases of approximately 2%, and a rent coverage
ratio of approximately 3x.
Core+ Real Estate Debt Fund Investment
In the fourth quarter of 2025, we made a $75.0 million capital commitment at the initial closing of a new BREDS-advised
private fund formed to invest in Core+ real estate debt investments in the U.S. and Canada. Blackstone affiliates, including
us, do not pay management fees or carried interest with respect to their investments in the BREDS-advised private fund.
Our capital commitment represented a minority of the total capital commitments the BREDS-advised private fund had
received as of March 31, 2026. As of March 31, 2026, the BREDS-advised private fund had not called any capital or made
any investments. To fund its future investments, the BREDS-advised private fund will draw down on capital commitments
made by its investors, including us, on a pro rata basis.
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Debt Securities Investment
In the first quarter of 2026, we invested $66.7 million in a significant risk transfer, or SRT, transaction with a UK financial
institution structured as a credit-linked note, or the UK Bank Loan Portfolio SRT. The investment constitutes the first-loss
tranche of a reference portfolio comprising a diversified, granular portfolio of low-leverage commercial real estate loans
held by the UK financial institution. The SRT investment earns a floating-rate cash coupon of SONIA + 7.00%. As of
March 31, 2026, no realized credit losses have been incurred with respect to the underlying reference loan portfolio.
Agency Multifamily Lending Partnership
In the second quarter of 2024, we entered into an agreement with M&T Realty Capital Corporation, or MTRCC, a
subsidiary of M&T Bank, that allows our borrowers to access multifamily agency financing through MTRCC’s Fannie
Mae DUS and Freddie Mac Optigo lending platforms, or our Agency Multifamily Lending Partnership. We will receive a
portion of origination, servicing, and other fees for loans that we refer to MTRCC for origination under both the Fannie
Mae and Freddie Mac programs. Additionally, we will share in losses with MTRCC and Fannie Mae on loans that we refer
to MTRCC for origination under the Fannie Mae program. During the three months ended March 31, 2026, we did not
refer any loans to MTRCC.
III. Financings
Loan Portfolio Financings
Our loan portfolio financing consists of secured debt, securitizations, and asset-specific debt. The following table details
our portfolio financing ($ in thousands):
Portfolio Financing Outstanding Principal Balance | |||
March 31, 2026 | December 31, 2025 | ||
Secured debt | $9,099,002 | $10,125,839 | |
Securitizations | 2,892,723 | 2,149,496 | |
Asset-specific debt | 961,050 | 999,810 | |
Total loan portfolio financing | $12,952,775 | $13,275,145 | |
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Secured Debt
The following table details our secured credit facilities by spread over the applicable base rates as of March 31, 2026 ($ in
thousands):
Three Months Ended March 31, 2026 | March 31, 2026 | |||||||||||||
Spread(1) | New Financings(2) | Total Borrowings | Wtd. Avg. All-in Cost(1)(3)(4) | Collateral(5) | Wtd. Avg. All-in Yield(1)(3) | Net Interest Margin(6) | ||||||||
+ 1.50% or less(7) | $59,040 | $4,350,442 | +1.55% | $5,979,079 | +3.07% | +1.52% | ||||||||
+ 1.51% to + 1.75% | — | 2,141,407 | +1.75% | 2,819,823 | +3.48% | +1.73% | ||||||||
+ 1.76% to + 2.00% | 102,261 | 1,086,492 | +2.07% | 1,729,600 | +2.82% | +0.75% | ||||||||
+ 2.01% or more | — | 1,520,661 | +2.61% | 2,351,849 | +4.27% | +1.66% | ||||||||
Total | $161,301 | $9,099,002 | +1.83% | $12,880,351 | +3.36% | +1.53% | ||||||||
(1)The spread, all-in cost, and all-in yield are expressed over the relevant floating benchmark rates, which include
SOFR, SONIA, EURIBOR, CORRA, and other indices as applicable.
(2)Represents the amount of new borrowings we closed during the three months ended March 31, 2026.
(3)In addition to spread, the cost includes the associated deferred fees and expenses related to the respective
borrowings. In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension
fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. All-in yield excludes loans
accounted for under the cost-recovery and nonaccrual methods, if any, and owned real estate assets.
(4)Represents the weighted-average all-in cost as of March 31, 2026 and is not necessarily indicative of the spread
applicable to recent or future borrowings.
(5)Represents the principal balance of the collateral loan assets and the carrying value of the collateral owned real
estate assets.
(6)Represents the difference between the weighted-average all-in yield and weighted-average all-in cost.
(7)Includes an interest rate swap with a $35.6 million notional amount that effectively converts our floating rate
liability to a fixed rate liability to align with the financed fixed rate loan exposure.
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Securitizations
We have financed certain pools of our loans through CLOs and have also financed one of our loans through a securitization
vehicle, or the European Loan Securitization. The following table details our securitized debt obligations and the
underlying collateral assets that are financed by our CLOs and the European Loan Securitization ($ in thousands):
March 31, 2026 | ||||||||||
Securitized Debt Obligations | Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2) | Term(3) | |||||
CLOs | ||||||||||
2026 FL6 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | 1 | $880,000 | $872,024 | + 1.84% | August 2043 | |||||
Underlying Collateral Assets | 19 | 999,379 | 999,379 | + 3.04% | September 2029 | |||||
2025 FL5 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | 1 | 831,250 | 822,738 | + 2.15% | October 2042 | |||||
Underlying Collateral Assets | 19 | 997,984 | 997,984 | + 3.44% | February 2029 | |||||
2021 FL4 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | 1 | 516,012 | 516,012 | + 1.60% | May 2038 | |||||
Underlying Collateral Assets | 14 | 645,605 | 645,605 | + 3.98% | May 2027 | |||||
2020 FL2 Collateralized Loan Obligation | ||||||||||
Senior CLO Securities Outstanding | 1 | 475,960 | 475,960 | + 1.88% | February 2038 | |||||
Underlying Collateral Assets | 10 | 644,610 | 644,610 | + 2.76% | January 2027 | |||||
Total | ||||||||||
Senior CLO Securities Outstanding | 4 | $2,703,222 | $2,686,734 | + 1.89% | ||||||
Underlying Collateral Assets | 62 | 3,287,578 | 3,287,578 | + 3.27% | ||||||
Securitizations | ||||||||||
European Loan Securitization | ||||||||||
Financing Provided | 1 | $189,501 | $187,755 | + 1.65% | July 2030 | |||||
Underlying Collateral Assets(4) | 1 | 245,066 | 242,518 | + 2.97% | July 2030 | |||||
Total | ||||||||||
Senior CLO Securities Outstanding / Financing Provided(5) | 5 | $2,892,723 | $2,874,489 | + 1.88% | ||||||
Underlying Collateral Assets | 63 | 3,532,644 | 3,530,096 | + 3.27% | ||||||
(1)The book value of underlying collateral assets excludes any applicable CECL reserves.
(2)In addition to cash coupon, all-in yield includes the amortization of deferred origination and extension fees, loan
origination costs, purchase discounts, and accrual of exit fees, while all-in cost includes the amortization of deferred
origination fees and financing costs. The weighted-average all-in yield and cost are expressed as a spread over the
relevant floating benchmark rates, which is SOFR for the CLOs and EURIBOR for the European Loan
Securitization. All-in yield excludes loans accounted for under the cost-recovery and nonaccrual methods, if any,
owned real estate assets, and cash from repayment proceeds held in certain of our CLOs that may be used to add
new eligible collateral assets.
(3)Underlying collateral assets term represents the weighted-average final maturity of such loans, assuming all
extension options are exercised by the borrower, and excludes owned real estate assets. Repayments of securitized
debt obligations are tied to timing of the related collateral loan asset repayments. The term of these obligations
represents the rated final distribution date of the securitizations.
(4)We financed our $55.8 million retained interests in the securitization under a repurchase agreement structured
without capital markets-based mark-to-market provisions. The amount of the financing is included in other liabilities
on our consolidated balance sheets.
(5)During the three months ended March 31, 2026, we recorded $34.7 million of interest expense related to our
securitized debt obligations.
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Refer to Note 8 and Note 19 to our consolidated financial statements for additional details of our securitized debt
obligations.
Asset-Specific Debt
The following table details our asset-specific debt ($ in thousands):
March 31, 2026 | ||||||||||
Asset-Specific Debt | Count | Principal Balance | Book Value(1) | Wtd. Avg. Yield/Cost(2) | Wtd. Avg. Term(3) | |||||
Financing provided | 4 | $961,050 | $959,352 | + 2.72% | February 2030 | |||||
Collateral assets | 4 | $1,195,137 | $1,186,818 | + 4.09% | February 2030 | |||||
(1)The book value of underlying collateral assets excludes any applicable CECL reserves.
(2)The weighted-average all-in yield and cost are expressed as a spread over the relevant floating benchmark rates,
which include SOFR and CORRA, as applicable. These floating rate loans and related liabilities are currency and
index-matched to the applicable benchmark rate relevant in each arrangement. In addition to cash coupon, yield/cost
includes the amortization of deferred origination fees and financing costs.
(3)The weighted-average term is determined based on the maximum maturity of the corresponding loans, assuming all
extension options are exercised by the borrower. Our non-recourse, asset-specific debt is term-matched in each case
to the corresponding collateral loans.
Corporate Financing
The following table details our outstanding corporate financing ($ in thousands):
Corporate Financing Outstanding Principal Balance | |||
March 31, 2026 | December 31, 2025 | ||
Term loans | $1,919,843 | $1,847,726 | |
Senior secured notes | 785,316 | 785,316 | |
Convertible notes | 266,157 | 266,157 | |
Total corporate financing | $2,971,316 | $2,899,199 | |
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The following table details our outstanding senior term loan facilities, or Term Loans, our outstanding senior secured notes,
or Senior Secured Notes, and convertible senior notes, or Convertible Notes, as of March 31, 2026 ($ in thousands):
Corporate Financing | Face Value | Interest Rate(1) | All-in Cost(1)(2) | Maturity | ||||
Term Loans | ||||||||
B-7 Term Loan | 450,839 | + 2.50% | + 2.66% | May 9, 2029 | ||||
B-8 Term Loan | 698,250 | + 2.50% | + 2.76% | December 19, 2032 | ||||
B-9 Term Loan | 770,754 | + 2.50% | + 2.80% | December 10, 2030 | ||||
Total term loans | $1,919,843 | |||||||
Senior Secured Notes | ||||||||
October 2021 | $335,316 | 3.75% | 4.06% | January 15, 2027 | ||||
December 2024 | 450,000 | 7.75% | (3) | 8.14% | December 1, 2029 | |||
Total senior secured notes | $785,316 | |||||||
Convertible Notes | ||||||||
Convertible Notes(4) | $266,157 | 5.50% | 5.79% | March 15, 2027 | ||||
Total corporate financings | $2,971,316 |
(1)The B-7 Term Loan and B-9 Term Loan borrowings are subject to a benchmark interest rate floor of 0.50%.
(2)Includes issue discounts, transaction expenses, and/or issuance costs, as applicable, that are amortized through
interest expense over the life of each respective financing.
(3)Represents the stated coupon rate of the notes. We have entered into an interest rate swap that effectively converts
our fixed rate exposure to a SOFR + 3.95% floating rate exposure. Refer to Note 11 to our consolidated financial
statements for further information.
(4)The conversion price of the Convertible Notes is $36.27, which represents the price of class A common stock per
share based on a conversion rate of 27.5702. The conversion rate represents the number of shares of class A
common stock issuable per $1,000 principal amount of Convertible Notes. The cumulative dividend threshold has
not been exceeded as of March 31, 2026.
Refer to Note 2, Note 10, Note 11, and Note 12 to our consolidated financial statements for further discussion of our Term
Loans, Senior Secured Notes, and Convertible Notes.
Floating Rate Loan Portfolio
Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates
will decrease net income. As of March 31, 2026, 97% of our loans by principal balance earned a floating rate of interest,
primarily indexed to SOFR, and were financed with liabilities that pay interest at floating rates, which resulted in an
amount of net equity that is positively correlated to rising interest rates, subject to the impact of interest rate floors on
certain of our floating rate loans.
Our liabilities are generally currency and index-matched to each collateral asset, resulting in a net exposure to movements
in benchmark rates that varies by currency silo based on the relative proportion of floating rate assets and liabilities.
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The following table details our investment portfolio’s exposure to interest rates by currency as of March 31, 2026 (amounts
in thousands):
USD | GBP | EUR | All Other(1) | ||||
Floating rate loans(2)(3)(4)(5) | $8,636,374 | £2,567,661 | €2,234,422 | $2,102,077 | |||
Floating rate portfolio financings(2)(5)(6)(7) | (6,868,156) | (1,953,983) | (1,576,628) | (1,681,832) | |||
Floating rate corporate financings(8) | (2,369,843) | — | — | — | |||
Net floating rate exposure | $(601,625) | £613,678 | €657,794 | $420,245 | |||
Net floating rate exposure in USD(8) | $(601,625) | $811,712 | $759,949 | $420,245 |
(1)Includes Australian Dollar, Canadian Dollar, and Swedish Krona currencies.
(2)Our floating rate loans and related liabilities are currency and index-matched to the applicable benchmark rate
relevant in each arrangement.
(3)Excludes $376.9 million of principal balance on floating rate impaired loans.
(4)Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’
exposure to an increase in interest rates.
(5)Excludes amounts related to our investments in unconsolidated entities.
(6)Includes amounts outstanding under secured debt, securitizations, and asset-specific debt. Excludes amounts related
to the indebtedness of unconsolidated entities.
(7)Excludes an interest rate swap with a $35.6 million notional amount that effectively converts our floating rate
liability to a fixed rate liability to align with the financed fixed rate loan exposure.
(8)Includes amounts outstanding under Term Loans and the Senior Secured Notes due 2029. In connection with the
issuance of the Senior Secured Notes due 2029, we entered into an interest rate swap with a notional amount of
$450.0 million to effectively convert our fixed rate exposure to floating rate exposure for such notes.
(9)Represents the U.S. dollar equivalent as of March 31, 2026.
In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates,
there is also the risk of non-performance on floating rate assets. In the case of a significant increase in interest rates, the
cash flows of the collateral real estate assets may not be sufficient to pay debt service due under our loans, which may
contribute to non-performance or, in severe cases, default. This risk is partially mitigated by our consideration of rising rate
stress-testing during our underwriting process, which generally includes a requirement for our borrower to purchase an
interest rate cap contract with an unaffiliated third party, provide an interest reserve deposit, and/or provide interest
guarantees or other structural protections.
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IV. Our Results of Operations
Operating Results
The following table sets forth information regarding our consolidated results of operations for the three months ended
March 31, 2026 and December 31, 2025 ($ in thousands, except per share data):
Three Months Ended | Change | ||||
March 31, 2026 | December 31, 2025 | $ | |||
Income from loans and other investments | |||||
Interest and related income | $305,557 | $318,848 | $(13,291) | ||
Less: Interest and related expenses | 220,736 | 234,932 | (14,196) | ||
Income from loans and other investments, net | 84,821 | 83,916 | 905 | ||
Revenue from owned real estate | 74,594 | 75,402 | (808) | ||
Total net revenues | 159,415 | 159,318 | 97 | ||
Expenses | |||||
Management and incentive fees | 14,813 | 16,434 | (1,621) | ||
General and administrative expenses | 13,981 | 13,243 | 738 | ||
Expenses from owned real estate | 81,975 | 78,380 | 3,595 | ||
Total expenses | 110,769 | 108,057 | 2,712 | ||
Increase in current expected credit loss reserve | (55,055) | (18,375) | (36,680) | ||
Income from unconsolidated entities | 1,383 | 7,272 | (5,889) | ||
Net loss on disposition of owned real estate | (160) | — | (160) | ||
Other income, net | 4 | 5 | (1) | ||
(Loss) income before income taxes | (5,182) | 40,163 | (45,345) | ||
Income tax provision | 1,158 | 535 | 623 | ||
Net (loss) income | (6,340) | 39,628 | (45,968) | ||
Net loss (income) attributable to non-controlling interests | 43 | (68) | 111 | ||
Net (loss) income attributable to Blackstone Mortgage Trust, Inc. | $(6,297) | $39,560 | $(45,857) | ||
Net (loss) income per share of common stock, basic and diluted | $(0.04) | $0.24 | $(0.28) | ||
Weighted-average shares of common stock outstanding, basic and diluted | 169,078,373 | 168,167,576 | 911 | ||
Dividends declared per share | $0.47 | $0.47 | $— | ||
Income from loans and other investments, net
Income from loans and other investments, net increased $0.9 million during the three months ended March 31, 2026
compared to the three months ended December 31, 2025. The increase was primarily driven by lower financing costs,
primarily due to the issuance of our FL6 CLO and B-9 Term Loan. This increase was partially offset by (i) a
$490.3 million decrease in the weighted-average principal balance of our loan portfolio, and (ii) declines in floating-rate
indices.
Revenue from owned real estate
Revenue from owned real estate decreased by $0.8 million during the three months ended March 31, 2026 compared to the
three months ended December 31, 2025. The decrease was primarily due to the seasonality of the operations at our
hospitality assets. This was partially offset by the acquisition or consolidation of two owned real estate assets during the
three months ended December 31, 2025, as the three months ended March 31, 2026 reflected a full quarter of income
recognition compared to a partial period during the three months ended December 31, 2025.
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Expenses
Expenses include management and incentive fees payable to our Manager, general and administrative expenses, and
expenses from owned real estate. Expenses increased by $2.7 million during the three months ended March 31, 2026
compared to the three months ended December 31, 2025, primarily due to a $6.9 million increase in expenses from owned
real estate mainly as a result of the acquisition or consolidation of two owned real estate assets during the three months
ended December 31, 2025, as the three months ended March 31, 2026 reflected a full quarter of expense recognition
compared to a partial period during the three months ended December 31, 2025, which was partially offset by the benefit
from a $3.3 million property tax refund received by one of our owned real estate assets. This was also partially offset by a
$1.6 million decrease in management fees payable to our Manager, due to lower Equity, as defined in our Management
Agreement, primarily resulting from charge-offs of CECL reserves.
Changes in current expected credit loss reserve
During the three months ended March 31, 2026, we recorded a $55.1 million increase in our CECL reserves, as compared
to an $18.4 million increase during the three months ended December 31, 2025. The increase during the three months
ended March 31, 2026 is primarily due to (i) an increase in our asset-specific CECL reserves, driven by two additional
loans that were impaired during the three months ended March 31, 2026, and (ii) an increase in our general CECL reserves
driven by new loan originations.
We may be required to record further increases to our CECL reserves in the future, depending on the performance of our
loan portfolio and changes in broader market conditions, and there may be volatility in the level of our CECL reserves.
Any such reserve increases are difficult to predict, but are expected to be primarily the result of incremental loan
impairments resulting from changes in the specific credit quality factors of such loans and to be concentrated in our loans
receivable with a risk rating of “4” as of March 31, 2026.
Income from unconsolidated entities
During the three months ended March 31, 2026, we recorded income from unconsolidated entities of $1.4 million
compared to $7.3 million during the three months ended December 31, 2025. This decrease was primarily due to lower
income from our Bank Loan Portfolio Joint Venture as a result of unrealized losses on the fair value adjustment of the
portfolio during the three months ended March 31, 2026, compared to unrealized gains during the three months ended
December 31, 2025.
Income tax provision
The income tax provision increased by $0.6 million during the three months ended March 31, 2026 compared to the three
months ended December 31, 2025, primarily due to an increase in the income tax provisions related to our taxable REIT
subsidiaries.
Dividends per share
During the three months ended March 31, 2026, we declared dividends of $0.47 per share, or $79.3 million in aggregate.
During the three months ended December 31, 2025, we declared dividends of $0.47 per share, or $79.1 million in
aggregate.
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The following table sets forth information regarding our consolidated results of operations for the three months ended
March 31, 2026 and 2025 ($ in thousands, except per share data):
Three Months Ended March 31, | Change | ||||
2026 | 2025 | $ | |||
Income from loans and other investments | |||||
Interest and related income | $305,557 | $332,057 | $(26,500) | ||
Less: Interest and related expenses | 220,736 | 242,233 | (21,497) | ||
Income from loans and other investments, net | 84,821 | 89,824 | (5,003) | ||
Revenue from owned real estate | 74,594 | 37,033 | 37,561 | ||
Total net revenues | 159,415 | 126,857 | 32,558 | ||
Expenses | |||||
Management and incentive fees | 14,813 | 17,235 | (2,422) | ||
General and administrative expenses | 13,981 | 12,664 | 1,317 | ||
Expenses from owned real estate | 81,975 | 46,302 | 35,673 | ||
Total expenses | 110,769 | 76,201 | 34,568 | ||
Increase in current expected credit loss reserve | (55,055) | (49,505) | (5,550) | ||
Income (loss) from unconsolidated entities | 1,383 | (874) | 2,257 | ||
Net loss on disposition of owned real estate | (160) | — | (160) | ||
Other income, net | 4 | 90 | (86) | ||
(Loss) income before income taxes | (5,182) | 367 | (5,549) | ||
Income tax provision | 1,158 | 718 | 440 | ||
Net loss | (6,340) | (351) | (5,989) | ||
Net loss (income) attributable to non-controlling interests | 43 | (6) | 49 | ||
Net loss attributable to Blackstone Mortgage Trust, Inc. | $(6,297) | $(357) | $(5,940) | ||
Net loss per share of common stock, basic and diluted | $(0.04) | $(0.00) | $(0.04) | ||
Weighted-average shares of common stock outstanding, basic and diluted | 169,078,373 | 172,004,888 | (2,926,515) | ||
Dividends declared per share | $0.47 | $0.47 | $— | ||
Income from loans and other investments, net
Income from loans and other investments, net decreased $5.0 million during the three months ended March 31, 2026
compared to the three months ended March 31, 2025. The decrease was primarily due to (i) a $303.5 million decrease in
the weighted-average principal balance of our loan portfolio, (ii) an $846.9 million increase in the weighted-average
principal balance of our outstanding financing arrangements, (iii) a decline in interest income related to additional loans
accounted for under the cost-recovery method or loans that are now accounted for as owned real estate assets during the
three months ended March 31, 2026, and (iv) declines in floating-rate indices.
Revenue from owned real estate
Revenue from owned real estate increased by $37.6 million during the three months ended March 31, 2026, primarily due
to the acquisition or consolidation of five additional owned real estate assets.
Expenses
Expenses include management and incentive fees payable to our Manager, general and administrative expenses, and
expenses from owned real estate. Expenses increased by $34.6 million during the three months ended March 31, 2026
compared to the three months ended March 31, 2025 primarily due to a $35.7 million increase in expenses from owned real
estate due to the acquisition or consolidation of five additional owned real estate assets. This was partially offset by a
$2.4 million decrease in management fees payable to our Manager, due to lower Equity, as defined in our Management
Agreement, primarily resulting from charge-offs of CECL reserves and repurchases of class A common shares.
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Changes in current expected credit loss reserve
During the three months ended March 31, 2026, we recorded a $55.1 million increase in our CECL reserves, as compared
to a $49.5 million increase during the three months ended March 31, 2025. The increase during the three months ended
March 31, 2026 was primarily due to (i) an increase in our asset-specific CECL reserves, driven by two additional loans
that were impaired during the three months ended March 31, 2026, and (ii) an increase in our general CECL reserves
driven by new loan originations.
We may be required to record further increases to our CECL reserves in the future, depending on the performance of our
loan portfolio and changes in broader market conditions, and there may be volatility in the level of our CECL reserves.
Any such reserve increases are difficult to predict, but are expected to be primarily the result of incremental loan
impairments resulting from changes in the specific credit quality factors of such loans and to be concentrated in our loans
receivable with a risk rating of “4” as of March 31, 2026.
Income (loss) from unconsolidated entities
During the three months ended March 31, 2026, we recorded income from unconsolidated entities of $1.4 million
compared to a loss of $0.9 million during the three months ended March 31, 2025. The increase was primarily due to
income from our Bank Loan Portfolio Joint Venture, which did not exist during the three months ended March 31, 2025, as
well as income from our Net Lease Joint Venture, which incurred a loss during the three months ended March 31, 2025.
Income tax provision
The income tax provision increased by $0.4 million during the three months ended March 31, 2026 as compared to the
three months ended March 31, 2025, due to an increase in the income tax provisions related to our taxable REIT
subsidiaries.
Dividends per share
During the three months ended March 31, 2026, we declared dividends of $0.47 per share, or $79.3 million in aggregate.
During the three months ended March 31, 2025, we declared dividends of $0.47 per share, or $80.6 million in aggregate.
V. Liquidity and Capital Resources
Capitalization
We have capitalized our business to date primarily through the issuance and sale of shares of our class A common stock,
corporate debt, and asset-level financings. As of March 31, 2026, our capitalization structure included $3.4 billion of
common equity, $3.0 billion of corporate debt, and $13.0 billion of asset-level financings. Our $3.0 billion of corporate
debt includes $1.9 billion of Term Loan borrowings, $785.3 million of Senior Secured Notes, and $266.2 million of
Convertible Notes. Our $13.0 billion of asset-level financings includes $9.1 billion of secured debt, $2.9 billion of
securitizations, and $961.1 million of asset-specific debt. Our asset-level financings are generally structured to provide
currency, index and term-matched financing without capital markets-based mark-to-market provisions.
As of March 31, 2026, we had $991.8 million of liquidity that can be used to satisfy our short-term cash requirements and
as working capital for our business.
See Notes 6, 7, 8, 9, 10, 11, and 12 to our consolidated financial statements for additional details regarding our other
secured debt, secured debt, securitized debt obligations, asset-specific debt, Term Loans, Senior Secured Notes, and
Convertible Notes, respectively.
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Debt-to-Equity Ratio and Total Leverage Ratio
The following table presents our debt-to-equity ratio and total leverage ratio:
March 31, 2026 | December 31, 2025 | ||
Debt-to-equity ratio(1)(2) | 3.7x | 3.9x | |
Total leverage ratio(1)(3) | 4.5x | 4.5x |
(1)The debt and leverage amounts included in the calculations above use gross outstanding principal balances,
excluding any unamortized deferred financing costs and discounts.
(2)Represents, in each case at period end, the ratio of (i) total outstanding secured debt, asset-specific debt, Term
Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) total equity.
(3)Represents, in each case at period end, the ratio of (i) total outstanding secured debt, securitizations, asset-specific
debt, Term Loans, Senior Secured Notes, and convertible notes, less cash, to (ii) total equity.
Sources of Liquidity
Our primary sources of liquidity include cash and cash equivalents, available borrowings under our secured debt facilities,
and net receivables from servicers related to loan repayments, which are set forth in the following table ($ in thousands):
March 31, 2026 | December 31, 2025 | ||
Cash and cash equivalents | $549,153 | $452,526 | |
Available borrowings under secured debt | 438,678 | 551,552 | |
Loan principal payments held by servicer, net(1) | 3,991 | 15,626 | |
$991,822 | $1,019,704 |
(1)Represents loan principal payments held by our third-party servicer as of the balance sheet date, which were
remitted to us during the subsequent remittance cycle, net of the related secured debt balance.
During the three months ended March 31, 2026, we generated cash flow from operating activities of $169.7 million and
received $599.3 million from loan principal collections, sales proceeds, and cost-recovery proceeds. Furthermore, we are
able to generate incremental liquidity through provisions of certain of our CLOs, which allow us to effectively replace, for
a period of time, a repaid loan in the CLO with additional eligible CLO collateral to maintain the aggregate amount of
collateral assets in the CLO, and the related financing outstanding.
We have access to further liquidity through public and private offerings of equity and debt securities, syndicated term
loans, and similar transactions. To facilitate public offerings of securities, in July 2025, we filed a shelf registration
statement with the SEC that is effective for a term of three years and expires in July 2028. The amount of securities to be
issued pursuant to this shelf registration statement was not specified when it was filed and there is no specific dollar limit
on the amount of securities we may issue. The securities covered by this registration statement include: (i) class A common
stock; (ii) preferred stock; (iii) depositary shares representing preferred stock; (iv) debt securities; (v) warrants; (vi)
subscription rights; (vii) purchase contracts; and (viii) units consisting of one or more of such securities or any combination
of these securities. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be
described in detail in a prospectus supplement, or other offering materials, at the time of any offering.
We may also access liquidity through our dividend reinvestment plan and direct stock purchase plan, under which
9,956,862 shares of class A common stock were available for issuance as of March 31, 2026, and our “at the market”
common stock offering program, pursuant to which we may sell, from time to time, up to $480.9 million of additional
shares of our class A common stock as of March 31, 2026. Refer to Note 14 to our consolidated financial statements for
additional details.
Uses of Liquidity
In addition to funding our lending and other investment activity and our general operating expenses, our primary uses of
liquidity include interest and principal payments with respect to our outstanding borrowings under secured debt, our asset-
specific debt, our Term Loans, our Senior Secured Notes, and our Convertible Notes. From time to time, we have
repurchased and may continue to repurchase our outstanding debt or shares of our class A common stock. Such
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repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and
other factors. The amounts involved in any such purchase transactions, individually or in the aggregate, may be material.
In October 2025, our board of directors authorized the repurchase of up to $150.0 million of shares of our class A common
stock under our repurchase program. Repurchases may be made from time to time in open market transactions, in privately
negotiated transactions, in agreements and arrangements structured in a manner consistent with Rules 10b-18 and 10b5-1
under the Exchange Act or otherwise. The timing and the actual amounts repurchased will depend on a variety of factors,
including legal requirements, price and economic and market conditions. The repurchase program may be changed,
suspended or discontinued at any time and does not have a specified expiration date.
During the three months ended March 31, 2026, we repurchased 43,765 shares of class A common stock at a weighted-
average price per share of $18.29, for a total cost of $0.8 million. As of March 31, 2026, the amount remaining available
for repurchases under the program was $148.8 million.
As of March 31, 2026, we had unfunded commitments of $1.2 billion related to 52 loans receivable and $715.5 million of
committed or identified financing for those commitments resulting in net unfunded commitments of $453.4 million. The
unfunded loan commitments comprise funding for capital expenditures and construction, leasing costs, and interest and
carry costs. Loan funding commitments are generally subject to certain conditions, including, without limitation, the
progress of capital projects, leasing, and cash flows at the properties securing our loans. Therefore, the exact timing and
amounts of such future loan fundings are uncertain and will depend on the current and future performance of the
underlying collateral assets. We expect to fund our loan commitments over the remaining term of the related loans, which
have a weighted-average future funding period of 1.8 years.
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Contractual Obligations and Commitments
Our contractual obligations and commitments as of March 31, 2026 were as follows ($ in thousands):
Payment Timing | |||||||||
Total Obligation | Less Than 1 Year(1) | 1 to 3 Years | 3 to 5 Years | More Than 5 Years | |||||
Unfunded loan commitments(2) | $1,168,941 | $260,622 | $828,429 | $69,265 | $10,625 | ||||
Principal repayments under secured debt(3) | 9,099,002 | 3,076,162 | 2,879,343 | 3,143,497 | — | ||||
Principal repayments under asset-specific debt(3) | 961,050 | — | 366,601 | 594,449 | — | ||||
Principal repayments of term loans(4) | 1,919,843 | 19,239 | 38,477 | 1,198,877 | 663,250 | ||||
Principal repayments of senior secured notes | 785,316 | — | 335,316 | 450,000 | — | ||||
Principal repayments of convertible notes(5) | 266,157 | 266,157 | — | — | — | ||||
Principal repayments of other secured debt(6) | 38,825 | — | — | 38,825 | — | ||||
Interest payments(3)(7) | 1,945,539 | 698,877 | 858,751 | 387,911 | — | ||||
Total(8) | $16,184,673 | $4,321,057 | $5,306,917 | $5,882,824 | $673,875 | ||||
(1)Represents known and estimated short-term cash requirements related to our contractual obligations and
commitments. Refer to “Sources of Liquidity” above for information about our sources of funds to satisfy our short-
term cash requirements.
(2)The allocation of our unfunded loan commitments is based on the earlier of the commitment expiration date or the
final loan maturity date; however, we may be obligated to fund these commitments earlier than such date.
(3)Our secured debt and asset-specific debt agreements are generally term-matched to their underlying collateral.
Therefore, the allocation of both principal and interest payments under such agreements is generally allocated based
on the maximum maturity date of the collateral loans, assuming all extension options are exercised by the borrower.
In limited instances, the maturity date of the respective debt agreement is used.
(4)The Term Loans are partially amortizing, with an amount equal to 1.0% per annum of the initial principal balance
due in quarterly installments. Refer to Note 10 to our consolidated financial statements for further details on our
Term Loans.
(5)Reflects the outstanding principal balance of Convertible Notes, excluding any potential conversion premium. Refer
to Note 12 to our consolidated financial statements for further details on our Convertible Notes.
(6)Amounts are included in other liabilities on our consolidated balance sheets.
(7)Represents interest payments on our secured debt, asset-specific debt, Term Loans, Senior Secured Notes,
Convertible Notes, and other secured debt. Future interest payment obligations are estimated assuming the interest
rates in effect as of March 31, 2026 will remain constant into the future. This is only an estimate as actual amounts
borrowed and interest rates will vary over time.
(8)Total does not include $2.9 billion of consolidated securitized debt obligations, as the satisfaction of these liabilities
will not require cash outlays from us.
We are also required to settle our foreign exchange and interest rate derivatives with our derivative counterparties upon
maturity which, depending on foreign currency exchange and interest rate movements, may result in cash received from or
due to such counterparties. The table above does not include these amounts as they are not fixed and determinable. Refer to
Note 13 to our consolidated financial statements for details regarding our derivative contracts.
We are required to pay our Manager a base management fee, an incentive fee, and reimbursements for certain expenses
pursuant to our Management Agreement. The table above does not include the amounts payable to our Manager under our
Management Agreement as they are not fixed and determinable. Refer to Note 15 to our consolidated financial statements
for additional terms and details of the fees payable under our Management Agreement.
As a REIT, we generally must distribute substantially all of our net taxable income to stockholders in the form of dividends
to comply with the REIT provisions of the Internal Revenue Code. Our taxable income does not necessarily equal our net
income as calculated in accordance with GAAP, or our Distributable Earnings as described above.
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Cash Flows
The following table provides a breakdown of the net change in our cash and cash equivalents ($ in thousands):
Three Months Ended March 31, | |||
2026 | 2025 | ||
Cash flows provided by operating activities | $169,727 | $100,516 | |
Cash flows provided by investing activities | 220,826 | 260,939 | |
Cash flows used in financing activities | (292,857) | (18,142) | |
Net increase in cash and cash equivalents | $97,696 | $343,313 | |
We experienced a net increase in cash and cash equivalents of $97.7 million for the three months ended March 31, 2026,
compared to a net increase of $343.3 million for the three months ended March 31, 2025. During the three months ended
March 31, 2026, we (i) received $880.0 million of net proceeds from the issuance of a securitized debt obligation, (ii)
received $599.3 million from loan principal collections and sales proceeds, (iii) received a net $72.1 million under our
secured term loan borrowings, and (iv) received aggregate distributions of $33.0 million from unconsolidated entities,
primarily as a result of our Net Lease Joint Venture refinancing its portfolio through an asset-backed securitization
transaction. Also, during the three months ended March 31, 2026, we (i) repaid a net $1.0 billion of secured debt
borrowings and asset-specific financings, (ii) funded $290.8 million of loans, (iii) repaid $133.6 million of securitized debt
obligations, (iv) paid $79.1 million of dividends on our class A common stock, and (v) invested $58.9 million in
unconsolidated entities.
Refer to Note 3 to our consolidated financial statements for further discussion of our loan activity. Refer to Notes 5, 7, 8,
and 14 to our consolidated financial statements for further discussion of our investments in unconsolidated entities, secured
debt, securitized debt obligations, and equity, respectively.
VI. Other Items
Income Taxes
We have elected to be taxed as a REIT under the Internal Revenue Code for U.S. federal income tax purposes. We
generally must distribute annually at least 90% of our net taxable income, subject to certain adjustments and excluding any
net capital gain, in order for U.S. federal income tax not to apply to our earnings. To the extent that we satisfy this
distribution requirement, but distribute less than 100% of our net taxable income, we will be subject to U.S. federal income
tax on our undistributed taxable income. In addition, we will be subject to a 4% nondeductible excise tax if the actual
amount that we pay out to our stockholders in a calendar year is less than a minimum amount specified under U.S. federal
tax laws.
Our qualification as a REIT also depends on our ability to meet various other requirements imposed by the Internal
Revenue Code, which relate to organizational structure, diversity of stock ownership, and certain restrictions with regard to
the nature of our assets and the sources of our income. Even if we qualify as a REIT, we may be subject to certain U.S.
federal income and excise taxes and state and local taxes on our income and assets. If we fail to maintain our qualification
as a REIT for any taxable year, we may be subject to material penalties as well as federal, state, and local income tax on
our taxable income at regular corporate rates and we would not be able to qualify as a REIT for the subsequent four full
taxable years. As of March 31, 2026 and December 31, 2025, we were in compliance with all REIT requirements.
Furthermore, our taxable REIT subsidiaries are subject to federal, state, and local income tax on their net taxable income.
Refer to Note 16 to our consolidated financial statements for further discussion of our income taxes.
Critical Accounting Policies
Our discussion and analysis of our financial condition and results of operations is based upon our consolidated financial
statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us
to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related
disclosure of contingent assets and liabilities. Actual results could differ from these estimates. We evaluated our critical
accounting policies and believe them to be appropriate. The following is a summary of our significant accounting policies
that we believe are the most affected by our judgments, estimates, and assumptions:
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Current Expected Credit Losses
The current expected credit loss, or CECL, reserve required under the FASB Accounting Standards Codification, or ASC,
Topic 326 “Financial Instruments – Credit Losses,” or ASC 326, reflects our current estimate of potential credit losses
related to our portfolio. We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or
WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in the Financial
Accounting Standards Board Staff Q&A Topic 326, No. 1. Estimating the CECL reserve requires judgment, including the
following assumptions:
•Historical loan loss reference data: To estimate the historic loan losses relevant to our portfolio, we have
augmented our historical loan performance with market loan loss data licensed from Trepp LLC. This database
includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through February 28,
2026. Within this database, we focused our historical loss reference calculations on the most relevant subset of
available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio,
including asset type, geography, and origination loan-to-value, or LTV. We believe this CMBS data, which
includes month-over-month loan and property performance, is the most relevant, available, and comparable
dataset to our portfolio.
•Expected timing and amount of future loan fundings and repayments: Expected credit losses are estimated over
the contractual term of each loan, adjusted for expected repayments. As part of our quarterly review of our loan
portfolio, we assess the expected repayment date of each loan, which is used to determine the contractual term for
purposes of computing our CECL reserves. Additionally, the expected credit losses over the contractual period of
our loans are subject to the obligation to extend credit through our unfunded loan commitments. The CECL
reserve for unfunded loan commitments is adjusted quarterly, as we consider the expected timing of future
funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for
unfunded loan commitments are similar to those used for the related outstanding loans receivable.
•Current credit quality of our portfolio: Our risk rating is our primary credit quality indicator in assessing our
CECL reserves. We perform a quarterly risk review of our portfolio of loans and assign each loan a risk rating
based on a variety of factors, including, without limitation, origination LTV, debt yield, property type, geographic
and local market dynamics, physical condition, cash flow volatility, leasing and tenant profile, loan structure and
exit plan, and project sponsorship.
•Expectations of performance and market conditions: Our CECL reserves are adjusted to reflect our estimation of
the current and future economic conditions that impact the performance of the commercial real estate assets
securing our loans. These estimations include unemployment rates, interest rates, expectations of inflation and/or
recession, and other macroeconomic factors impacting the likelihood and magnitude of potential credit losses for
our loans during their anticipated term. In addition to the CMBS data we have licensed from Trepp LLC, we have
also licensed certain macroeconomic financial forecasts to inform our view of the potential future impact that
broader economic conditions may have on our loan portfolio’s performance. We generally also incorporate
information from other sources, including information and opinions available to our Manager, to further inform
these estimations. This process requires significant judgments about future events that, while based on the
information available to us as of the balance sheet date, are ultimately indeterminate and the actual economic
condition impacting our portfolio could vary significantly from the estimates we made as of March 31, 2026.
•Impairment: impairment is indicated when it is deemed probable that we will not be able to collect all amounts
due to us pursuant to the contractual terms of the loan. Determining that a loan is impaired requires significant
judgment from management and is based on several factors including (i) the underlying collateral performance,
(ii) discussions with the borrower, (iii) borrower events of default, and (iv) other facts that impact the borrower’s
ability to pay the contractual amounts due under the terms of the loan. If a loan is determined to be impaired, we
record the impairment as a component of our CECL reserves by applying the practical expedient for collateral
dependent loans. The CECL reserves are assessed on an individual basis for these loans by comparing the
estimated fair value of the underlying collateral, less costs to sell, to the book value of the respective loan. These
valuations require significant judgments, which include assumptions regarding capitalization rates, discount rates,
leasing, creditworthiness of major tenants, occupancy rates, availability and cost of financing, exit plan, loan
sponsorship, actions of other lenders, and other factors deemed relevant by us. Actual losses, if any, could
ultimately differ materially from these estimates. We only expect to charge off the impairment losses in our
consolidated financial statements prepared in accordance with GAAP if and when such amounts are deemed non-
recoverable. This is generally at the time a loan is repaid or foreclosed, or the underlying collateral assets are
otherwise consolidated. However, non-recoverability may also be concluded if, in our determination, it is nearly
certain that all amounts due will not be collected.
86
These assumptions vary from quarter-to-quarter as our loan portfolio changes and market and economic conditions evolve.
The sensitivity of each assumption and its impact on the CECL reserves may change over time and from period to period.
During the three months ended March 31, 2026, our CECL reserves increased by $8.6 million, bringing our total reserves
to $304.7 million as of March 31, 2026. See Notes 2 and 3 to our consolidated financial statements for further discussion of
our CECL reserves.
Revenue Recognition
Interest income from our loans receivable portfolio is recognized over the life of each loan using the effective interest
method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these
investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally
suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery
of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized
cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually
current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses
are deferred and recognized as a reduction to interest income; however, expenses related to loans we acquire are included
in general and administrative expenses as incurred.
The sources of revenue from our owned real estate assets, which is included in revenue from owned real estate on our
consolidated statements of operations, and the related revenue recognition policies are as follows:
Rental income primarily consists of base rent income arising from tenant leases at our office and multifamily properties.
We determine if an arrangement is a lease at contract inception, which is subject to the provisions of ASC 842. Base rent is
recognized on a straight-line basis over the life of the lease, including any rent steps or abatement provisions. We begin to
recognize revenue upon the acquisition of the related property or when a tenant takes possession of the leased space.
Other operating income primarily consists of income from our hospitality properties and tenant reimbursement income.
Revenue from our hospitality properties consists primarily of room revenue and food and beverage revenue. Room revenue
is recognized when the related room is occupied and other hospitality revenue is recognized when the service is rendered.
Tenant reimbursement income primarily consists of amounts due from tenants for costs related to common area
maintenance, real estate taxes, and other recoverable costs included in lease agreements.
We evaluate the collectability of receivables related to rental revenue on an individual lease basis and exercise judgment in
assessing collectability considering the length of time a receivable has been outstanding, tenant credit-worthiness, payment
history, available information about the financial condition of the tenant, and current economic trends, among other factors.
Tenant receivables that are deemed uncollectible are recognized as a reduction to rental revenue.
Owned Real Estate
We may assume legal title, physical possession, or control of the collateral underlying a loan through a foreclosure, a deed-
in-lieu of foreclosure transaction, or a loan modification in which we receive an equity interest in and/or control over
decision-making at the property, resulting in us consolidating the real estate assets as VIEs. These real estate acquisitions
are classified as owned real estate, on our consolidated balance sheet and are initially recognized at fair value on the
acquisition date in accordance with the ASC Topic 805, “Business Combinations,” or ASC 805.
Upon acquisition of owned real estate assets, we assess the fair value of acquired tangible and intangible assets, which may
include land, buildings, tenant improvements, “above-market” and “below-market” leases, acquired in-place leases, other
identified intangible assets and assumed liabilities, as applicable, and allocate the fair value to the acquired assets and
assumed liabilities. We assess and consider fair value based on estimated cash flow projections that utilize discount and/or
capitalization rates that we deem appropriate, as well as other available market information. Estimates of future cash flows
are based on a number of factors, including the historical operating results, known and anticipated trends, and market and
economic conditions. We capitalize acquisition-related costs associated with asset acquisitions.
Real estate assets held for investment, except for land, are depreciated using the straight-line method over the assets’
estimated useful lives of up to 40 years for buildings, 15 years for land improvements, and 10 years for tenant
improvements. Renovations and/or replacements that improve or extend the life of the asset are capitalized and depreciated
over their estimated useful lives. Lease intangibles are amortized over the remaining term of applicable leases on a straight-
line basis. The cost of ordinary repairs and maintenance are expensed as incurred.
87
Real estate assets held for investment are assessed for impairment on a quarterly basis. If the depreciated cost basis of the
asset exceeds the undiscounted cash flows over the remaining holding period, the asset is considered for impairment. The
impairment loss is recognized when the carrying value of the real estate assets exceed their fair value. The evaluation of
anticipated future cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental
rates, capital requirements and anticipated holding periods that could differ materially from actual results.
Real estate assets are classified as held for sale in the period when they meet the criteria under ASC Topic 360 “Property,
Plant, and Equipment.” Once a real estate asset is classified as held for sale, depreciation is suspended and the asset is
reported at the lower of its carrying value or fair value less cost to sell. If circumstances arise and we decide not to sell a
real estate asset previously classified as held for sale, the real estate asset is reclassified as held for investment. Upon
reclassification, the real estate asset is measured at the lower of (i) its carrying amount prior to classification as held for
sale, adjusted for depreciation expense that would have been recognized had the real estate been classified as held for
investment, and (ii) its estimated fair value at the time of reclassification.
As of March 31, 2026, we had 13 owned real estate assets that were all classified as held for investment.
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VII. Loan Portfolio Details
The following table provides details of our loan portfolio, on a loan-by-loan basis, as of March 31, 2026 ($ in millions):
Senior Loan Portfolio(1) | ||||||||||||||||||||||||||
Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key / Acre / MW | Origination LTV(2) | Risk Rating | |||||||||||||||
1 | Mixed-Use | Dublin, IE | 8/14/2019 | $988 | $942 | $942 | +3.20 | % | +3.95 | % | 1/29/2027 | $272 / sqft | 74% | 3 | ||||||||||||
2 | Hospitality | Diversified, AU | 6/24/2022 | 913 | 913 | 908 | +4.75 | % | +4.93 | % | 6/21/2030 | $415 / sqft | 59% | 3 | ||||||||||||
3 | Mixed-Use | Austin | 6/28/2022 | 675 | 539 | 536 | +4.60 | % | +5.08 | % | 7/9/2029 | $448 / sqft | 53% | 3 | ||||||||||||
4 | Mixed-Use | Diversified, Spain | 3/22/2018 | 498 | 498 | 498 | +3.25 | % | +3.25 | % | 4/15/2026 | n / a | 71% | 4 | ||||||||||||
5 | Industrial | Diversified, SE | 3/30/2021 | 489 | 489 | 489 | +3.20 | % | +3.41 | % | 5/18/2027 | $88 / sqft | 76% | 2 | ||||||||||||
6 | Self-Storage | Diversified, CAN | 2/20/2025 | 449 | 449 | 449 | +3.50 | % | +3.50 | % | 2/9/2030 | $154 / sqft | 58% | 2 | ||||||||||||
7 | Industrial | Diversified, US | 10/28/2025 | 419 | 419 | 415 | +2.65 | % | +3.01 | % | 11/9/2030 | $100 / sqft | 78% | 3 | ||||||||||||
8 | Mixed-Use | New York | 12/9/2021 | 385 | 384 | 383 | +2.76 | % | +3.00 | % | 12/9/2026 | $131 / sqft | 50% | 3 | ||||||||||||
9 | Industrial | Diversified, UK | 4/7/2025 | 344 | 344 | 343 | +2.55 | % | +2.88 | % | 4/7/2030 | $341 / sqft | 67% | 3 | ||||||||||||
10 | Office | Chicago | 12/11/2018 | 356 | 343 | 345 | +1.75 | % | +1.88 | % | 12/9/2026 | $287 / sqft | 78% | 4 | ||||||||||||
11 | Multifamily | London, UK | 12/23/2021 | 341 | 341 | 339 | +4.25 | % | +4.95 | % | 6/24/2028 | $377,079 / unit | 59% | 3 | ||||||||||||
12 | Industrial | Diversified, UK | 5/15/2025 | 299 | 299 | 299 | +2.70 | % | +2.89 | % | 5/15/2028 | $141 / sqft | 69% | 3 | ||||||||||||
13 | Office | Seattle | 1/26/2022 | 338 | 298 | 297 | +4.10 | % | +4.44 | % | 2/9/2027 | $607 / sqft | 56% | 3 | ||||||||||||
14 | Office | Washington, DC | 9/29/2021 | 293 | 293 | 293 | +2.81 | % | +3.05 | % | 10/9/2026 | $382 / sqft | 66% | 2 | ||||||||||||
15 | Industrial | Diversified, UK | 5/6/2022 | 291 | 291 | 291 | +3.50 | % | +3.71 | % | 5/6/2027 | $92 / sqft | 53% | 2 | ||||||||||||
16 | Other | Diversified, UK | 1/11/2019 | 290 | 290 | 290 | +5.20 | % | +5.06 | % | 6/14/2028 | $230 / sqft | 74% | 3 | ||||||||||||
17 | Industrial | Diversified, EUR | 6/5/2025 | 245 | 245 | 243 | +2.70 | % | +2.97 | % | 7/19/2030 | $66 / sqft | 70% | 3 | ||||||||||||
18 | Office | New York | 4/11/2018 | 243 | 243 | 242 | +2.25 | % | +2.62 | % | 3/7/2028 | $307 / sqft | 52% | 4 | ||||||||||||
19 | Multifamily | London, UK | 7/16/2021 | 242 | 234 | 234 | +3.25 | % | +3.51 | % | 2/15/2027 | $239,117 / unit | 69% | 2 | ||||||||||||
20 | Multifamily | Reno | 2/23/2022 | 240 | 231 | 231 | +2.60 | % | +2.83 | % | 3/9/2027 | $214,474 / unit | 74% | 3 | ||||||||||||
21 | Industrial | Diversified, UK | 8/15/2025 | 271 | 227 | 225 | +2.65 | % | +3.13 | % | 10/1/2030 | $201 / sqft | 70% | 3 | ||||||||||||
22 | Office | Berlin, DEU | 6/27/2019 | 256 | 225 | 225 | +1.00 | % | +1.13 | % | 6/6/2030 | $473 / sqft | 62% | 4 | ||||||||||||
23 | Industrial | Diversified, US | 2/13/2025 | 225 | 208 | 207 | +3.10 | % | +3.49 | % | 3/9/2030 | $727,471 / acre | 62% | 3 | ||||||||||||
24 | Industrial | Diversified, UK | 3/28/2025 | 202 | 202 | 201 | +2.45 | % | +2.74 | % | 3/28/2030 | $127 / sqft | 69% | 3 | ||||||||||||
25 | Industrial | Diversified, UK | 4/11/2025 | 198 | 198 | 197 | +2.40 | % | +2.77 | % | 4/11/2030 | $113 / sqft | 69% | 3 | ||||||||||||
26 | Office | New York | 7/23/2021 | 244 | 184 | 184 | -1.30 | % | (7) | -1.03 | % | 8/9/2028 | $596 / sqft | 53% | 4 | |||||||||||
27 | Retail | Diversified, UK | 3/9/2022 | 179 | 179 | 179 | +2.75 | % | +2.88 | % | 8/15/2028 | $152 / sqft | 55% | 2 | ||||||||||||
28 | Multifamily | Dallas | 1/27/2022 | 178 | 178 | 179 | +8.10 | % | +8.10 | % | 2/9/2027 | $116,020 / unit | n/m | 5 | ||||||||||||
29 | Industrial | Diversified, EUR | 12/17/2025 | 172 | 172 | 170 | +3.25 | % | +3.61 | % | 12/17/2030 | $87 / sqft | 66% | 3 | ||||||||||||
30 | Hospitality | Los Angeles | 3/7/2022 | 156 | 156 | 156 | +3.45 | % | +3.66 | % | 6/9/2026 | $624,000 / key | 64% | 3 | ||||||||||||
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Senior Loan Portfolio(1) | ||||||||||||||||||||||||||
Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key / Acre / MW | Origination LTV(2) | Risk Rating | |||||||||||||||
31 | Self-Storage | London, UK | 11/18/2021 | $150 | $150 | $149 | +3.25 | % | +3.51 | % | 11/18/2026 | $190 / sqft | 65% | 2 | ||||||||||||
32 | Multifamily | Melbourne, AU | 1/10/2025 | 148 | 148 | 148 | +3.85 | % | +4.52 | % | 1/10/2028 | $446,837 / unit | 76% | 3 | ||||||||||||
33 | Multifamily | San Jose | 4/2/2025 | 182 | 148 | 147 | +2.35 | % | +2.76 | % | 4/9/2030 | $316,910 / unit | 67% | 3 | ||||||||||||
34 | Multifamily | Dublin, IE | 12/15/2021 | 145 | 143 | 143 | +2.75 | % | +3.05 | % | 12/9/2026 | $358,264 / unit | 79% | 3 | ||||||||||||
35 | Industrial | Diversified, UK | 11/12/2025 | 151 | 142 | 140 | +2.80 | % | +3.21 | % | 11/7/2029 | $123 / sqft | 72% | 3 | ||||||||||||
36 | Mixed-Use | New York | 1/17/2020 | 183 | 140 | 140 | +3.12 | % | +3.44 | % | 2/9/2028 | $111 / sqft | 43% | 3 | ||||||||||||
37 | Multifamily | Manchester, UK | 6/30/2025 | 138 | 138 | 137 | +2.30 | % | +2.65 | % | 6/30/2029 | $295,195 / unit | 63% | 3 | ||||||||||||
38 | Office | London, UK | 12/20/2019 | 135 | 135 | 135 | 4.00 | % | 4.00 | % | 3/31/2029 | $685 / sqft | 68% | 4 | ||||||||||||
39 | Industrial | Diversified, US | 2/2/2026 | 134 | 134 | 133 | +2.32 | % | +2.68 | % | 2/9/2031 | $126 / sqft | 70% | 3 | ||||||||||||
40 | Office | San Jose | 8/24/2021 | 156 | 129 | 125 | +2.71 | % | +8.31 | % | 9/9/2028 | $302 / sqft | 65% | 4 | ||||||||||||
41 | Office | Diversified, UK | 11/23/2018 | 128 | 128 | 127 | +3.50 | % | +3.74 | % | 11/15/2029 | $1,062 / sqft | 50% | 3 | ||||||||||||
42 | Multifamily | Los Angeles | 9/14/2021 | 128 | 127 | 127 | +2.81 | % | +3.05 | % | 10/9/2026 | $256,954 / unit | 75% | 3 | ||||||||||||
43 | Multifamily | Miami | 11/27/2024 | 125 | 125 | 124 | +2.80 | % | +3.17 | % | 12/9/2029 | $260,417 / unit | 71% | 3 | ||||||||||||
44 | Retail | San Diego | 8/27/2021 | 122 | 122 | 122 | +3.11 | % | +3.36 | % | 9/9/2026 | $464 / sqft | 58% | 3 | ||||||||||||
45 | Life Sciences/ Studio | Boston | 5/13/2021 | 143 | 122 | 122 | 3.25 | % | 3.25 | % | 9/9/2030 | $608 / sqft | 64% | 4 | ||||||||||||
46 | Office | Houston | 7/15/2019 | 136 | 122 | 122 | +3.01 | % | +3.22 | % | 8/9/2028 | $220 / sqft | 58% | 3 | ||||||||||||
47 | Multifamily | Denver | 11/26/2025 | 120 | 120 | 119 | +2.35 | % | +2.71 | % | 12/9/2030 | $469,762 / unit | 65% | 3 | ||||||||||||
48 | Multifamily | Miami | 6/1/2021 | 120 | 120 | 119 | +2.65 | % | +2.95 | % | 6/9/2029 | $298,507 / unit | 61% | 3 | ||||||||||||
49 | Office | Miami | 3/28/2022 | 120 | 119 | 119 | +2.55 | % | +2.79 | % | 4/9/2027 | $313 / sqft | 69% | 3 | ||||||||||||
50 | Multifamily | Diversified, UK | 3/29/2021 | 115 | 115 | 114 | +4.52 | % | +4.40 | % | 12/17/2026 | $50,125 / unit | 61% | 3 | ||||||||||||
51 | Multifamily | Phoenix | 12/29/2021 | 110 | 110 | 110 | +2.85 | % | +3.11 | % | 7/9/2027 | $189,003 / unit | 64% | 3 | ||||||||||||
52 | Multifamily | Tampa | 2/15/2022 | 106 | 106 | 105 | +2.85 | % | +3.09 | % | 3/9/2027 | $241,972 / unit | 73% | 2 | ||||||||||||
53 | Life Sciences/ Studio | Los Angeles | 6/28/2019 | 106 | 106 | 106 | +8.75 | % | +8.75 | % | 2/1/2026 | $531 / sqft | n/m | 5 | ||||||||||||
54 | Industrial | Diversified, FR | 12/11/2025 | 105 | 105 | 104 | +2.65 | % | +3.00 | % | 12/11/2030 | $69 / sqft | 68% | 3 | ||||||||||||
55 | Office | Orange County | 8/31/2017 | 105 | 105 | 105 | +2.62 | % | +2.62 | % | 9/9/2026 | $162 / sqft | 58% | 4 | ||||||||||||
56 | Office | Chicago | 9/30/2021 | 104 | 104 | 104 | 5.00 | % | 5.00 | % | 10/9/2029 | $115 / sqft | 43% | 3 | ||||||||||||
57 | Multifamily | Washington, DC | 11/17/2025 | 105 | 104 | 103 | +2.50 | % | +2.83 | % | 12/9/2030 | $292,642 / unit | 72% | 3 | ||||||||||||
58 | Mixed-Use | New York | 3/10/2020 | 103 | 103 | 103 | +3.00 | % | +3.01 | % | 7/11/2029 | $628 / sqft | 48% | 2 | ||||||||||||
59 | Multifamily | Various, TX | 10/15/2025 | 105 | 102 | 101 | +2.60 | % | +2.93 | % | 11/9/2030 | $226,659 / unit | 73% | 3 | ||||||||||||
60 | Industrial | Diversified, US | 5/22/2025 | 115 | 101 | 101 | +3.00 | % | +3.36 | % | 6/9/2030 | $859,363 / acre | 56% | 3 | ||||||||||||
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Senior Loan Portfolio(1) | ||||||||||||||||||||||||||
Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key / Acre / MW | Origination LTV(2) | Risk Rating | |||||||||||||||
61 | Hospitality | Honolulu | 1/30/2020 | $99 | $99 | $99 | +3.50 | % | +3.50 | % | 2/9/2027 | $270,109 / key | 63% | 3 | ||||||||||||
62 | Retail | New York | 9/24/2025 | 121 | 99 | 98 | +3.35 | % | +3.76 | % | 10/9/2030 | $133 / sqft | 56% | 3 | ||||||||||||
63 | Multifamily | Miami | 3/29/2022 | 99 | 99 | 100 | +6.84 | % | +7.68 | % | 4/9/2027 | $276,125 / unit | 75% | 4 | ||||||||||||
64 | Multifamily | Diversified, NL | 3/27/2025 | 99 | 99 | 99 | +2.70 | % | +2.97 | % | 3/31/2028 | $116,897 / unit | 62% | 2 | ||||||||||||
65 | Hospitality | Honolulu | 3/13/2018 | 98 | 98 | 98 | +3.11 | % | +3.36 | % | 4/9/2027 | $152,536 / key | 50% | 3 | ||||||||||||
66 | Industrial | Diversified, BE | 3/7/2025 | 109 | 98 | 97 | +2.75 | % | +3.32 | % | 3/7/2030 | $40 / sqft | 57% | 2 | ||||||||||||
67 | Office | Washington, DC | 12/21/2021 | 103 | 97 | 97 | +2.70 | % | +2.93 | % | 1/9/2027 | $333 / sqft | 68% | 4 | ||||||||||||
68 | Multifamily | San Antonio | 3/20/2025 | 97 | 97 | 96 | +2.80 | % | +3.16 | % | 4/9/2030 | $449,074 / unit | 72% | 3 | ||||||||||||
69 | Multifamily | Phoenix | 10/1/2021 | 96 | 96 | 97 | +2.13 | % | +2.66 | % | 1/9/2029 | $221,705 / unit | 77% | 4 | ||||||||||||
70 | Multifamily | Philadelphia | 10/28/2021 | 96 | 96 | 95 | +3.00 | % | +3.24 | % | 11/9/2026 | $353,704 / unit | 79% | 3 | ||||||||||||
71 | Multifamily | Seattle | 9/13/2024 | 94 | 94 | 94 | +3.25 | % | +3.49 | % | 11/9/2027 | $509,389 / unit | 68% | 3 | ||||||||||||
72 | Multifamily | Orlando | 10/27/2021 | 93 | 93 | 93 | +2.61 | % | +2.85 | % | 11/9/2026 | $155,612 / unit | 75% | 3 | ||||||||||||
73 | Mixed-Use | San Francisco | 6/14/2022 | 106 | 90 | 91 | +2.95 | % | +3.20 | % | 7/9/2027 | $187 / sqft | 76% | 4 | ||||||||||||
74 | Hospitality | Boston | 3/3/2022 | 89 | 89 | 89 | +2.75 | % | +3.09 | % | 3/9/2027 | $404,364 / key | 64% | 3 | ||||||||||||
75 | Multifamily | Charlotte | 7/29/2021 | 82 | 82 | 82 | +2.76 | % | +3.59 | % | 8/9/2027 | $223,735 / unit | 78% | 3 | ||||||||||||
76 | Hospitality | Diversified, US | 8/27/2021 | 79 | 79 | 78 | +4.60 | % | +4.84 | % | 9/9/2026 | $116,598 / key | 67% | 3 | ||||||||||||
77 | Multifamily | Tampa | 12/21/2021 | 74 | 74 | 74 | +2.70 | % | +2.94 | % | 1/9/2027 | $217,353 / unit | 77% | 3 | ||||||||||||
78 | Retail | Utrecht, NL | 5/30/2025 | 72 | 72 | 72 | +2.80 | % | +3.16 | % | 5/30/2030 | $170 / sqft | 62% | 2 | ||||||||||||
79 | Multifamily | Las Vegas | 3/31/2022 | 68 | 68 | 68 | +2.80 | % | +3.04 | % | 4/9/2027 | $149,295 / unit | 71% | 3 | ||||||||||||
80 | Multifamily | Miami | 7/31/2025 | 68 | 68 | 68 | +2.60 | % | +2.96 | % | 8/9/2030 | $229,730 / unit | 72% | 3 | ||||||||||||
81 | Multifamily | Melbourne, AU | 6/13/2025 | 252 | 66 | 65 | +4.75 | % | +6.21 | % | 8/8/2029 | $139,135 / unit | 76% | 3 | ||||||||||||
82 | Office | Nashville | 6/30/2021 | 65 | 62 | 62 | +2.95 | % | +3.20 | % | 7/9/2026 | $256 / sqft | 71% | 3 | ||||||||||||
83 | Office | Los Angeles | 4/6/2021 | 62 | 62 | 62 | 6.00 | % | 6.00 | % | 1/9/2030 | $254 / sqft | 65% | 2 | ||||||||||||
84 | Hospitality | Bermuda | 4/26/2024 | 69 | 61 | 61 | +4.95 | % | +5.62 | % | 5/9/2029 | $693,780 / key | 39% | 2 | ||||||||||||
85 | Office | New York | 5/28/2025 | 68 | 61 | 61 | +3.25 | % | +3.66 | % | 6/9/2030 | $397 / sqft | 60% | 1 | ||||||||||||
86 | Hospitality | Napa Valley | 4/29/2022 | 60 | 60 | 59 | +2.65 | % | +2.93 | % | 4/9/2028 | $626,382 / key | 66% | 2 | ||||||||||||
87 | Multifamily | Seattle | 10/28/2021 | 59 | 59 | 59 | +2.95 | % | +3.18 | % | 11/9/2027 | $180,070 / unit | 70% | 3 | ||||||||||||
88 | Multifamily | Phoenix | 12/17/2021 | 58 | 58 | 58 | +2.70 | % | +2.97 | % | 1/9/2028 | $209,601 / unit | 69% | 3 | ||||||||||||
89 | Office | Miami | 6/14/2021 | 58 | 58 | 58 | +2.30 | % | +2.30 | % | 3/9/2027 | $122 / sqft | 65% | 2 | ||||||||||||
90 | Industrial | Minneapolis | 12/12/2024 | 61 | 58 | 57 | +2.85 | % | +3.23 | % | 1/9/2030 | $82 / sqft | 59% | 3 | ||||||||||||
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Senior Loan Portfolio(1) | ||||||||||||||||||||||||||
Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key / Acre / MW | Origination LTV(2) | Risk Rating | |||||||||||||||
91 | Multifamily | Salt Lake City | 7/30/2021 | $58 | $58 | $57 | +2.95 | % | +3.22 | % | 8/9/2027 | $208,436 / unit | 73% | 3 | ||||||||||||
92 | Multifamily | Atlanta | 10/17/2025 | 57 | 56 | 56 | +2.30 | % | +2.57 | % | 11/9/2030 | $212,121 / unit | 64% | 3 | ||||||||||||
93 | Office | Denver | 8/5/2021 | 56 | 55 | 55 | +2.96 | % | +3.21 | % | 8/9/2026 | $206 / sqft | 70% | 4 | ||||||||||||
94 | Office | Denver | 4/7/2022 | 57 | 55 | 55 | +3.25 | % | +3.50 | % | 4/9/2027 | $160 / sqft | 59% | 3 | ||||||||||||
95 | Mixed-Use | New York | 6/25/2025 | 221 | 54 | 52 | +3.75 | % | +4.36 | % | 12/25/2028 | $96,194 / unit | 44% | 3 | ||||||||||||
96 | Industrial | Diversified, US | 12/14/2018 | 54 | 54 | 54 | +3.01 | % | +3.41 | % | 1/9/2027 | $40 / sqft | 57% | 1 | ||||||||||||
97 | Multifamily | Los Angeles | 7/28/2021 | 53 | 53 | 53 | +2.75 | % | +3.12 | % | 8/9/2026 | $300,083 / unit | 71% | 3 | ||||||||||||
98 | Self-Storage | Diversified, US | 2/18/2025 | 53 | 53 | 52 | +3.10 | % | +3.47 | % | 3/9/2030 | $90 / sqft | 67% | 3 | ||||||||||||
99 | Multifamily | Denver | 3/19/2025 | 51 | 51 | 51 | +2.60 | % | +2.92 | % | 5/9/2030 | $221,739 / unit | 64% | 3 | ||||||||||||
100 | Hospitality | Waimea | 2/27/2025 | 50 | 50 | 50 | +2.80 | % | +2.92 | % | 2/9/2030 | $823,353 / key | 52% | 2 | ||||||||||||
101 | Office | Los Angeles | 8/22/2019 | 50 | 50 | 50 | +2.66 | % | +2.90 | % | 3/9/2027 | $288 / sqft | 63% | 4 | ||||||||||||
102 | Multifamily | Los Angeles | 7/20/2021 | 48 | 48 | 48 | +2.86 | % | +3.11 | % | 8/9/2026 | $366,412 / unit | 60% | 3 | ||||||||||||
103 | Multifamily | Dallas | 12/23/2025 | 45 | 45 | 44 | 5.74 | % | 6.45 | % | 1/1/2031 | $148,333 / unit | 77% | 3 | ||||||||||||
104 | Multifamily | Columbus | 12/8/2021 | 44 | 44 | 44 | +2.75 | % | +2.99 | % | 12/9/2026 | $144,479 / unit | 69% | 2 | ||||||||||||
105 | Multifamily | Dublin, IE | 12/8/2025 | 40 | 40 | 40 | +2.65 | % | +2.87 | % | 12/2/2030 | $351,613 / unit | 73% | 3 | ||||||||||||
106 | Multifamily | Las Vegas | 3/31/2022 | 39 | 39 | 39 | +2.80 | % | +3.04 | % | 4/9/2027 | $155,163 / unit | 72% | 3 | ||||||||||||
107 | Multifamily | Savannah | 10/10/2025 | 40 | 38 | 37 | +2.85 | % | +2.94 | % | 11/9/2030 | $241,935 / unit | 69% | 3 | ||||||||||||
108 | Office | Canberra, AU | 5/8/2025 | 37 | 37 | 36 | +3.80 | % | +3.98 | % | 5/8/2028 | $415 / sqft | 75% | 3 | ||||||||||||
109 | Office | Atlanta | 5/27/2025 | 51 | 36 | 35 | +3.65 | % | +4.03 | % | 6/9/2030 | $121 / sqft | 39% | 2 | ||||||||||||
110 | Multifamily | Los Angeles | 3/1/2022 | 35 | 35 | 35 | +3.00 | % | +3.17 | % | 3/9/2027 | $372,340 / unit | 72% | 3 | ||||||||||||
111 | Retail | Hamburg, DEU | 3/19/2026 | 42 | 33 | 32 | +2.90 | % | +3.40 | % | 3/4/2030 | $108 / sqft | 65% | 3 | ||||||||||||
112 | Mixed-Use | New York | 2/21/2025 | 24 | 24 | 24 | +3.25 | % | +3.52 | % | 3/9/2030 | $775 / sqft | 59% | 3 | ||||||||||||
113 | Office | Austin | 4/15/2021 | 24 | 22 | 22 | +3.06 | % | +3.13 | % | 12/9/2029 | $155 / sqft | 40% | 2 | ||||||||||||
114 | Multifamily | Las Vegas | 8/4/2021 | 22 | 22 | 22 | +2.86 | % | +3.11 | % | 8/9/2026 | $180,000 / unit | 73% | 3 | ||||||||||||
115 | Multifamily | Atlanta | 5/9/2025 | 21 | 21 | 21 | +2.85 | % | +2.94 | % | 5/9/2030 | $205,882 / unit | 65% | 3 | ||||||||||||
Subtotal: Senior loan portfolio | $18,181 | $17,144 | $17,089 | +3.16 | % | +3.49 | % | 2.4 yrs | 65% | 3.0 | ||||||||||||||||
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Subordinate Loan Portfolio(8) | ||||||||||||||||||||||||||
Property Type | Location | Origination Date(2) | Total Commitment(3) | Principal Balance | Net Book Value(4) | Cash Coupon(5) | All-in Yield(5) | Maximum Maturity(6) | Loan Per SQFT / Unit / Key / Acre / MW | Origination LTV(2) | Risk Rating | |||||||||||||||
116 | Office | Los Angeles | 11/22/2019 | $129 | $119 | $119 | +2.50 | % | +2.50 | % | 12/9/2027 | $807 / sqft | 69% | 4 | ||||||||||||
117 | Office | Orange County | 8/31/2017 | 64 | 59 | 42 | n/m | (9) | n/m | 9/9/2026 | $337 / sqft | n/m | 5 | |||||||||||||
118 | Life Sciences/ Studio | San Francisco | 11/10/2021 | 72 | 57 | 57 | +8.71 | % | +8.92 | % | 12/9/2026 | $529 / sqft | 66% | 4 | ||||||||||||
119 | Industrial | Diversified, US | 3/10/2025 | 56 | 56 | 56 | +5.00 | % | +5.12 | % | 3/9/2030 | $111 / sqft | 70% | 3 | ||||||||||||
120 | Multifamily | Los Angeles | 12/30/2021 | 42 | 36 | 36 | +8.80 | % | +9.11 | % | 1/9/2030 | $515,378 / unit | 50% | 3 | ||||||||||||
121 | Multifamily | London, UK | 7/18/2025 | 29 | 29 | 29 | +8.98 | % | +9.38 | % | 7/5/2030 | $739,765 / unit | 69% | 3 | ||||||||||||
122 | Other | Manassas, VA | 1/9/2026 | 26 | 26 | 25 | 12.98 | % | 14.23 | % | 1/9/2031 | $9,840,909 / MW | 64% | 3 | ||||||||||||
123 | Office | Austin | 4/15/2021 | 24 | 24 | 20 | n/m | (9) | n/m | 12/9/2029 | $382 / sqft | n/m | 5 | |||||||||||||
124 | Industrial | New York | 1/8/2026 | 23 | 23 | 19 | 5.79 | % | 9.67 | % | 1/9/2031 | $12 / sqft | 63% | 3 | ||||||||||||
125 | Hospitality | Miami | 5/2/2025 | 23 | 21 | 21 | +9.50 | % | +10.15 | % | 5/9/2030 | $947,029 / key | 53% | 3 | ||||||||||||
126 | Mixed-Use | New York | 5/20/2025 | 28 | 17 | 17 | 10.00 | % | 10.06 | % | 10/1/2034 | $1,038 / sqft | 59% | 3 | ||||||||||||
127 | Office | London, UK | 12/20/2019 | 14 | 14 | 14 | n/m | (9) | n/m | 3/31/2029 | $832 / sqft | n/m | 5 | |||||||||||||
128 | Office | Chicago | 9/30/2021 | 44 | 11 | 11 | n/m | (9) | n/m | 10/9/2029 | $158 / sqft | n/m | 5 | |||||||||||||
129 | Other | Honolulu | 3/2/2026 | 41 | 5 | 4 | +9.72 | % | +11.54 | % | 3/9/2032 | $65 / sqft | 69% | 3 | ||||||||||||
130 | Life Sciences/ Studio | Boston | 5/13/2021 | 15 | — | — | n/m | (9) | n/m | 9/9/2030 | $644 / sqft | n/m | 5 | |||||||||||||
Subtotal: subordinate loan portfolio | $628 | $496 | $469 | +6.53 | % | +7.01 | % | 3.1 yrs | 65% | 3.7 | ||||||||||||||||
Subtotal: loans receivable portfolio | $18,808 | $17,639 | $17,558 | |||||||||||||||||||||||
Total CECL reserve | (292) | |||||||||||||||||||||||||
Total loans receivable portfolio | $18,808 | $17,639 | $17,266 | +3.23 | % | +3.46 | % | 2.4 yrs | 65% | 3.0 | ||||||||||||||||
(1)Senior loans include senior mortgages and similar credit quality loans, including related contiguous subordinate loans and pari passu participations in senior mortgage
loans.
(2)Date loan was originated or acquired by us, and the LTV as of such date, excluding any loans that are impaired.
(3)Total commitment reflects outstanding principal balance as well as any related unfunded loan commitment.
(4)Net book value represents outstanding principal balance, net of purchase and sale discounts or premiums, exit fees, deferred origination expenses, and cost-recovery
proceeds.
(5)The weighted-average cash coupon and all-in yield are expressed as a spread over the relevant floating benchmark rates, which include SOFR, SONIA, EURIBOR,
CORRA, and other indices as applicable to each loan. As of March 31, 2026, 97% of our loans by principal balance earned a floating rate of interest, primarily indexed to
SOFR. The remaining 3% of our loans by principal balance earned a fixed rate of interest. In addition to cash coupon, all-in yield includes the amortization of deferred
origination and extension fees, loan origination costs, and purchase discounts, as well as the accrual of exit fees. Excludes loans accounted for under the cost-recovery and
nonaccrual methods, if any.
(6)Maximum maturity assumes all extension options are exercised; however, our loans may be repaid prior to such date. Excludes loans accounted for under the cost-
recovery and nonaccrual methods, if any.
(7)This loan has an interest rate of SOFR minus 1.30% with a SOFR floor of 3.50%, for an all-in rate of 2.36% as of March 31, 2026.
(8)Subordinate loans include: (i) loans in which we have previously originated a whole loan and sold a senior mortgage interest to a third party, resulting in these subordinate
interests in mortgages, (ii) mezzanine loans, and (iii) the subordinate portion of loans that have been modified that have resulted in a restructured senior loan and a
subordinate loan.
(9)These subordinate loans are the result of a loan modification which resulted in a restructured senior loan and a subordinate loan. Each of the subordinate loans are
accounted for under the cost-recovery method.
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ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Interest Rate Risk
Loan Portfolio Net Interest Income
Generally, our business model is such that rising interest rates will increase our net income, while declining interest rates
will decrease net income. As of March 31, 2026, 97% of our loans by principal balance earned a floating rate of interest,
primarily indexed to SOFR, and were financed with liabilities that pay interest at floating rates, which resulted in an
amount of net equity that is positively correlated to changing interest rates, subject to the impact of interest rate floors on
certain of our floating rate loans.
The following table projects the impact on our net interest income, presented net of implied changes in incentive fees, for
the twelve-month period following March 31, 2026, of an increase in the various floating-rate indices referenced by our
portfolio, assuming no change in credit spreads, portfolio composition, or asset performance, relative to the average indices
during the three months ended March 31, 2026 ($ in thousands):
Assets (Liabilities) Sensitive to Changes in Interest Rates(1) | Interest Rate Sensitivity as of March 31, 2026(2)(3) | |||||||||
Increase in Rates | Decrease in Rates | |||||||||
50 Basis Points | 100 Basis Points | 50 Basis Points | 100 Basis Points | |||||||
Floating rate assets(4)(5)(6) | $16,716,124 | $66,433 | $133,014 | $(64,463) | $(114,423) | |||||
Floating rate liabilities(5)(6)(7) | (15,325,843) | (61,303) | (122,607) | 61,303 | 122,607 | |||||
Net exposure | $1,390,281 | $5,130 | $10,407 | $(3,160) | $8,184 | |||||
(1)Reflects the USD equivalent value of floating rate assets and liabilities denominated in foreign currencies.
(2)Increases (decreases) in interest income and expense are presented net of theoretical impact of incentive fees. Refer
to Note 15 to our consolidated financial statements for additional details of our incentive fee calculation.
(3)Excludes income from loans accounted for under the cost-recovery method.
(4)Excludes $376.9 million of principal balance on floating rate impaired loans.
(5)Our loan agreements generally require our borrowers to purchase interest rate caps, which mitigates our borrowers’
exposure to an increase in interest rates.
(6)Excludes amounts related to our investments in unconsolidated entities.
(7)Includes amounts outstanding under our secured debt, securitizations, asset-specific debt, Term Loans, and Senior
Secured Notes due 2029, for which we entered into an interest rate swap with a notional amount of $450.0 million
that effectively converts our fixed rate exposure to floating rate exposure for such notes. Excludes amounts related to
the indebtedness of our unconsolidated entities.
Loan Portfolio Value
As of March 31, 2026, 97% of our loans by principal balance earned a floating rate of interest, so the value of such
investments is generally not impacted by changes in market interest rates. Additionally, we generally hold all of our loans
to maturity and so do not expect to realize gains or losses resulting from any mark to market valuation adjustments on our
loan portfolio.
Risk of Non-Performance
In addition to the risks related to fluctuations in cash flows and asset values associated with movements in interest rates,
there is also the risk of non-performance on floating rate assets. In the case of a significant increase in interest rates, the
cash flows of the collateral real estate assets may not be sufficient to pay debt service due under our loans, which may
contribute to non-performance or, in severe cases, default. This risk is partially mitigated by our consideration of rising rate
stress-testing during our underwriting process, which generally includes a requirement for our borrower to purchase an
interest rate cap contract with an unaffiliated third party, provide an interest reserve deposit, and/or provide interest
guarantees or other structural protections.
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Credit Risks
Our loans are subject to credit risk, including the risk of default. The performance and value of our loans depend upon the
borrowers’ ability to operate the properties that serve as our collateral so that they produce cash flows adequate to pay
interest and principal due to us. To monitor this risk, our asset management team reviews our loan portfolios and, in certain
instances, is in regular contact with our borrowers, monitoring performance of the collateral and enforcing our rights as
necessary.
In addition, we are exposed to the risks generally associated with the commercial real estate market, including changes in
occupancy rates, capitalization rates, absorption rates, and other macroeconomic factors beyond our control. We seek to
manage these risks through our underwriting and asset management processes.
We maintain a robust asset management relationship with our borrowers and utilize these relationships to maximize the
performance of our portfolio, including during periods of volatility. We believe that we benefit from these relationships and
from our long-standing core business model of originating senior loans collateralized by large assets in major markets with
experienced, well-capitalized institutional sponsors. While we believe the principal amounts of our loans are generally
adequately protected by underlying collateral value, there is a risk that we will not realize the entire principal value of
certain loans. As of March 31, 2026, we had an aggregate $84.9 million asset-specific CECL reserve related to seven of our
loans receivable, with an aggregate amortized cost basis of $372.2 million, net of cost-recovery proceeds. This CECL
reserve was recorded based on our estimation of the fair value of each of the loan’s underlying collateral as of March 31,
2026.
Our portfolio monitoring and asset management operations benefit from the deep knowledge, experience, and information
advantages derived from our position as part of Blackstone’s real estate platform. Blackstone has built the world's
preeminent global real estate business, with a proven track record of successfully navigating market cycles and emerging
stronger through periods of volatility. The market-leading real estate expertise derived from the strength of the Blackstone
platform deeply informs our credit and underwriting process, and we believe gives us the tools to expertly asset manage
our portfolio and work with our borrowers throughout periods of economic stress and uncertainty.
Capital Market Risks
We are exposed to risks related to the equity capital markets, and our related ability to raise capital through the issuance of
our class A common stock or other equity instruments. We are also exposed to risks related to the debt capital markets, and
our related ability to finance our business through borrowings under credit facilities or other debt instruments. As a REIT,
we are required to distribute a significant portion of our taxable income annually, which constrains our ability to
accumulate operating cash flow and therefore requires us to utilize debt or equity capital to finance our business. We seek
to mitigate these risks by monitoring the debt and equity capital markets to inform our decisions on the amount, timing, and
terms of capital we raise.
Our master repurchase agreements and secured credit facilities are generally structured without capital markets-based
mark-to-market provisions, which means the margin call provisions do not permit valuation adjustments based on capital
markets events. The majority of our master repurchase agreements and secured credit facilities are non-mark-to-market,
which means the margin call provisions only permit valuation adjustments if the loan or collateral pledged or sold by us
becomes defaulted, and the margin call provisions for the remainder are limited to collateral-specific credit marks generally
determined on a commercially reasonable basis. There can be no assurance we will not experience margin calls under any
asset-level financing that contains margin call provisions.
Counterparty Risk
The nature of our business requires us to hold our cash and cash equivalents and obtain financing from various financial
institutions. This exposes us to the risk that these financial institutions may not fulfill their obligations to us under these
various contractual arrangements. We mitigate this exposure by depositing our cash and cash equivalents and entering into
financing agreements with high credit-quality institutions.
The nature of our loans also exposes us to the risk that our counterparties do not make required interest and principal
payments on scheduled due dates. We seek to manage this risk through a comprehensive credit analysis prior to making a
loan and active monitoring of the asset portfolios that serve as our collateral, as further discussed above.
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Currency Risk
Our loans that are denominated in a foreign currency are also subject to risks related to fluctuations in currency rates. We
generally mitigate this exposure by matching the currency of our assets to the currency of the financing for our assets. As a
result, we substantially reduce our exposure to changes in portfolio value related to changes in foreign currency rates. In
addition, substantially all of our net asset exposure to foreign currencies has been hedged with foreign currency forward
contracts as of March 31, 2026.
The following tables outline our assets and liabilities that are denominated in a foreign currency (amounts in thousands):
March 31, 2026 | |||||
GBP | EUR | All Other(1) | |||
Foreign currency assets | £2,762,416 | €2,263,111 | $2,142,617 | ||
Foreign currency liabilities | (1,964,193) | (1,582,400) | (1,690,189) | ||
Foreign currency contracts – notional | (791,078) | (698,366) | (444,052) | ||
Net exposure to exchange rate fluctuations | £7,145 | €(17,655) | $8,376 | ||
Net exposure to exchange rate fluctuations in USD(2) | $9,450 | $(20,397) | $8,376 | ||
(1)Includes Swedish Krona, Australian Dollar, and Canadian Dollar currencies.
(2)Represents the U.S. Dollar equivalent as of March 31, 2026.
ITEM 4.CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The company maintains disclosure controls and procedures (as that term is defined in Rules 13a-15(e) and 15d-15(e) under
the Exchange Act) that are designed to ensure that information required to be disclosed in the company’s reports under the
Exchange Act is recorded, processed, and summarized and reported within the time periods specified in the SEC’s rules
and forms, and that such information is accumulated and communicated to the company’s management, including its Chief
Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.
Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of
achieving the desired control objectives. An evaluation of the effectiveness of the design and operation of our disclosure
controls and procedures as of the end of the period covered by this Quarterly Report on Form 10-Q was made under the
supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial
Officer. Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our
disclosure controls and procedures (a) are effective to ensure that information required to be disclosed by us in reports filed
or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by
SEC rules and forms and (b) include, without limitation, controls and procedures designed to ensure that information
required to be disclosed by us in reports filed or submitted under the Exchange Act is accumulated and communicated to
our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely
decisions regarding required disclosure.
Changes in Internal Control Over Financial Reporting
There have been no changes in our “internal control over financial reporting” (as defined in Rule 13a–15(f) of the
Exchange Act) that occurred during our most recent quarter that have materially affected, or are reasonably likely to
materially affect, our internal control over financial reporting.
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we may be involved in various claims and legal actions arising in the ordinary course of business. As of
March 31, 2026, we were not involved in any material legal proceedings.
ITEM 1A. RISK FACTORS
There have been no material changes to the risk factors previously disclosed under “Part I, Item 1A. Risk Factors” of our
Annual Report on Form 10-K for the year ended December 31, 2025.
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ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
The following table sets forth information regarding repurchases of shares of our class A common stock during the three
months ended March 31, 2026:
Period | Total Number of Shares Purchased | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(2) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program ($ in thousands)(2) | |||
January 1 - January 31, 2026 | 200 | $18.75 | 200 | $149,619 | |||
February 1 - February 28, 2026 | 100 | 18.75 | 100 | 149,617 | |||
March 1 - March 31, 2026 | 43,465 | 18.29 | 43,465 | 148,822 | |||
Total | 43,765 | $18.29 | 43,765 | $148,822 |
(1)The average price paid per share is calculated on a trade date basis and excludes associated commissions.
(2)In October 2025, our board of directors authorized the repurchase of up to $150.0 million of shares of our class A
common stock under our repurchase program. Repurchases may be made from time to time in open market
transactions, in privately negotiated transactions, in agreements and arrangements structured in a manner
consistent with Rules 10b-18 and 10b5-1 under the Exchange Act or otherwise. The timing and the actual amounts
repurchased will depend on a variety of factors, including legal requirements, price and economic and market
conditions. The repurchase program may be changed, suspended or discontinued at any time and does not have a
specified expiration date. See Note 14 to our consolidated financial statements and “Part I. Item 2. Management’s
Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources —
Uses of Liquidity” for further information regarding this repurchase program, including activity during October
2025.
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ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
During the three months ended March 31, 2026, two of our officers adopted a “Rule 10b5-1 trading arrangement,” as
defined in Item 408(c) of Regulation S-K, each of which is intended to satisfy the affirmative defense of Rule 10b5-1(c)
under the Exchange Act. Marcin Urbaszek , our Chief Financial Officer , adopted a Rule 10b5-1 sales plan on February 27,
arising from vesting of an aggregate of 15,337 shares of restricted stock granted on December 15, 2025, held by Mr.
Urbaszek. The number of shares to be sold under the plan is unknown, as the number of shares will vary based on the
extent to which vesting conditions are satisfied and the market price of our class A common stock at the time of vesting.
Mr. Urbaszek’s Rule 10b5-1 sales plan will expire on December 31, 2028 , subject to the plan’s earlier expiration or
arising from vesting of an aggregate 36,843 shares of restricted stock granted on December 15, 2025, held by Mr. Peña.
The number of shares to be sold under the plan is unknown, as the number of shares will vary based on the extent to which
vesting conditions are satisfied and the market price of our class A common stock at the time of vesting. Mr. Peña’s Rule
10b5-1 sales plan will expire on December 31, 2028 , subject to the plan’s earlier expiration or completion in accordance
with its terms.
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ITEM 6. | EXHIBITS |
10.1 | Fourteenth Amendment to Term Loan Credit Agreement, dated as of January 14, 2026, by and among Blackstone Mortgage Trust, Inc., the subsidiary guarantors party thereto, each lender party thereto and JPMorgan Chase Bank, N.A., as administrative agent. | |
10.2 | Second Amendment to Guaranty, dated as of February 27, 2026, by and between Blackstone Mortgage Trust, Inc, Parlex 3A USD IE Issuer Designated Activity Company, Parlex 3A GBP IE Issuer Designated Activity Company, Parlex 3A EUR IE Issuer Designated Activity Company, and Parlex 3A SEK IE Issuer Designated Activity Company , Perpetual Corporate Trust Limited As Trustee of the Parlex 2022-1 Issuer Trust, Barclays Bank PLC, Silver Holdco I, LLC and Silver Holdco II, LLC, 345-50 Partners, LLC, 345-40 Partners, LLC, 345-2 Partners, LLC, 42-16 Partners, LLC, and U.S. Bank Trustees Limited | |
10.3 | First Amendment to Amended and Restated Limited Guaranty, dated as of February 24, 2026, made by Blackstone Mortgage Trust, Inc. in favor of Citibank, N.A. | |
31.1 | Certification of Chief Executive Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
31.2 | Certification of Chief Financial Officer, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | |
32.1 + | Certification of Chief Executive Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
32.2 + | Certification of Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | |
101.INS | XBRL Instance Document – the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document With Embedded Linkbase Documents | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | |
___________
+ This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the
liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act or the
Exchange Act.
The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other
disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely
on them for that purpose. In particular, any representations and warranties made by us in these agreements or other
documents were made solely within the specific context of the relevant agreement or document and may not describe the
actual state of affairs as of the date they were made or at any other time.
100
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly authorized.
BLACKSTONE MORTGAGE TRUST, INC. | ||
April 29, 2026 | /s/ Timothy S. Johnson | |
Date | Timothy S. Johnson | |
Chief Executive Officer | ||
(Principal Executive Officer) | ||
April 29, 2026 | /s/ Marcin Urbaszek | |
Date | Marcin Urbaszek | |
Chief Financial Officer | ||
(Principal Financial Officer and Principal Accounting Officer) |