Blackstone Mortgage Trust, Inc.

BXMT reported a GAAP net loss of $0.48 per share in Q2 2026. Distributable earnings were $0.31 per share, and distributable earnings prior to realized gains and losses were $0.48 per share, down $0.01 from the prior quarter. Q2 DE included $29 million of realized losses, mainly from the resolution of an impaired Dallas multifamily loan. Book value ended at $19.31 per share, down 4% from Q1, primarily due to a $0.80 per share increase in CECL reserves and $0.12 per share of depreciation and amortization. The company ended the quarter with $1.2 billion of liquidity and a 3.9x debt-to-equity ratio, up from 3.7x in Q1. Management said Q3 DE should be impacted by the new loan impairments and the timing of several large repayments collected in July, but did not provide a numerical quarterly guide. They expect to reduce exposure to office loans and legacy pre-2023 loans by 40% or more by year-end.

Tim Johnson framed the quarter around an active portfolio-rotation strategy: harvest repayments, sell select assets, and redeploy capital into sectors where BXMT sees the best relative value. He emphasized residential, industrial, net lease, and homebuilder finance as high-conviction themes, and said the company is using its platform to gain share where banks have pulled back. His tone was constructive but candid about near-term pressure from legacy office and other watchlist assets, noting the company may see some impact on book value and earnings as it works through these positions.

Marcin Urbaszek said DE of $0.31 per share was covered by DE before realized gains and losses of $0.48 per share, but the quarter included $29 million of realized losses tied to the Dallas multifamily foreclosure. He highlighted book value of $19.31 per share, $2.43 per share of total CECL reserves, and liquidity of $1.2 billion, while noting the debt-to-equity ratio rose to 3.9x mainly due to timing of repayments and higher CECL. He also pointed to the May issuance of $450 million of senior secured notes, which pre-funded a 2027 maturity, and said non-mark-to-market borrowings now represent about 88% of total debt.

Analysts focused on whether the planned sale of roughly $1 billion of loans would require additional CECL reserves, and management said it is still early, there are no reserves against those loans today, and bids will be reviewed before any next-quarter update. Questions also centered on dividend support, near-term earnings drag from impairments and repayments, and leverage; management said the dividend is set based on long-term earnings power, not quarter-to-quarter noise, and leverage remains within the 3x-4x debt-to-equity range. On office and multifamily, management said the watchlist subset is mostly risk-rated four and office-heavy, while multifamily remains liquid with strong repayment activity and improving fundamentals.