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1. Company Snapshot

1.a. Company Description

Blackstone Mortgage Trust, Inc., a real estate finance company, originates senior loans collateralized by commercial properties in North America, Europe, and Australia.The company operates as a real estate investment trust for federal income tax purposes.It generally would not be subject to U.S. federal income taxes if it distributes at least 90% of its taxable income to its stockholders.


The company was formerly known as Capital Trust, Inc.and changed its name to Blackstone Mortgage Trust, Inc.in May 2013.


Blackstone Mortgage Trust, Inc.was founded in 1997 and is headquartered in New York, New York.

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1.b. Last Insights on BXMT

Blackstone Mortgage Trust's recent performance was driven by strong Q4 2024 earnings, with a beat in quarterly earnings of $0.44 per share. This was partly due to a decrease in interest rates, which increased net interest income despite pressure on borrowers. The company's ability to generate distributable earnings despite a significant margin of safety due to potential loan recovery rates was also a positive factor. However, concerns over dividend sustainability and credit issues, including a 7% non-performing loan portfolio and high exposure to U.S. office real estate, may impact the company's future performance.

1.c. Company Highlights

2. Blackstone Mortgage Trust Posts Strong Q3 2025 Results

Blackstone Mortgage Trust reported distributable earnings of $0.24 per share, beating analyst estimates of $0.19. The company's GAAP net income came in at $0.37 per share. Distributable earnings prior to charge-offs were $0.48 per share, covering the $0.47 dividend. The results underscore the continued momentum across all aspects of the business, with a stable credit backdrop and no new impaired loans.

Publication Date: Nov -03

📋 Highlights
  • Distributable Earnings Coverage: Reported $0.48/share distributable earnings (prior to charge-offs) covering the $0.47/share dividend.
  • Investment Activity: Closed $1 billion in investments, with 75% in multifamily/industrial and 60% in international markets.
  • Liquidity & Leverage: Maintained $1.3 billion liquidity and 3.5x leverage within the target range, enabling capital flexibility.
  • Credit Resolution Progress: Resolved 70% of impaired loans, with no new impairments reported in Q3.
  • Office Market Recovery: 6 loans upgraded and 2 removed from the watch list due to improved leasing activity in the office sector.

Investment Activity

The company closed $1 billion of total investments across loan originations, net lease assets, and a performing bank loan portfolio acquired at a discount. Loan originations remained concentrated in highest conviction sectors, with 75% in multifamily and diversified industrial portfolios, and over 60% in international markets. The investment activity demonstrates the distinct advantages of the platform's differentiated scale and sourcing capabilities.

Financial Position

Blackstone Mortgage Trust has over $1.3 billion in liquidity, providing the capability to address significant CapEx needs. The condition of its assets is good, and the company is comfortable with its current position. The leverage ratio stands at 3.5x, within the target range, and the company has confidence in its ability to cover the dividend.

Credit Performance

The direction of travel for credit is clearly positive, with no new impairments. The company has resolved 70% of its impaired loans and has a good line of sight to resolving more. Reserve levels are considered appropriate, and the company feels good about the overall path in terms of credit performance. Stability and improvement are seen across the office market, with upgrades and leasing activity.

Valuation

With a dividend yield of 10.17%, the stock offers an attractive return. The price-to-book ratio stands at 0.88, indicating that the stock is trading slightly below book value. Analysts estimate revenue growth at 6.4% for the next year, suggesting a positive outlook. The current valuation metrics suggest that the stock is reasonably priced, considering its dividend yield and growth prospects.

3. NewsRoom

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Realty Income Announces $800 Million Preferred Equity Investment in CityCenter Las Vegas Real Estate Assets

Dec -01

Source: prnewswire.com

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Doves Take The Wheel

Nov -30

Source: seekingalpha.com

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Brokerages Set Blackstone Mortgage Trust, Inc. (NYSE:BXMT) Price Target at $20.00

Nov -25

Source: defenseworld.net

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A Fed Divided

Nov -23

Source: seekingalpha.com

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Hawks In The House

Nov -16

Source: seekingalpha.com

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Winners And Losers Of REIT Earnings Season

Nov -14

Source: seekingalpha.com

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Blackstone Mortgage Trust, Inc. $BXMT Stock Holdings Lifted by Advisors Capital Management LLC

Nov -14

Source: defenseworld.net

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Blackstone Mortgage Trust: Future Value Expected To Mitigate Near-Term Loan Headwinds (Rating Upgrade)

Nov -11

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.90%)

6. Segments

Commercial Mortgage Loans and Related Investments

Expected Growth: 8.9%

Strong demand for commercial real estate, increasing property values, and low interest rates drive growth in commercial mortgage loans. Blackstone Mortgage Trust's diversified portfolio, strategic lending, and active asset management also contribute to the 8.9% growth. Additionally, the company's ability to originate and acquire high-quality loans, as well as its strong relationships with borrowers, further support this growth.

7. Detailed Products

Senior Loans

Blackstone Mortgage Trust, Inc. offers senior loans to borrowers, providing financing for various commercial real estate properties, including office buildings, apartments, and hotels.

Mezzanine Loans

The company offers mezzanine loans, which provide borrowers with additional financing beyond traditional senior loans, often used for property renovations or redevelopments.

Preferred Equity

Blackstone Mortgage Trust, Inc. invests in preferred equity, providing capital to borrowers in exchange for a preferred return on investment.

Joint Venture Equity

The company participates in joint venture equity investments, partnering with borrowers to co-invest in commercial real estate properties.

CMBS (Commercial Mortgage-Backed Securities)

Blackstone Mortgage Trust, Inc. invests in CMBS, which are securities backed by commercial mortgages, providing a diversified portfolio of commercial real estate loans.

8. Blackstone Mortgage Trust, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Blackstone Mortgage Trust, Inc. operates in a niche market, providing mortgage financing to high-quality borrowers. While there are substitutes available, the company's strong reputation and expertise in the mortgage market reduce the threat of substitutes.

Bargaining Power Of Customers

Blackstone Mortgage Trust, Inc.'s customers are primarily high-quality borrowers who require specialized mortgage financing. The company's strong relationships with its customers and its ability to provide customized financing solutions reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Blackstone Mortgage Trust, Inc. has a diversified funding base, which reduces its dependence on any single supplier. The company's strong relationships with its suppliers and its ability to access capital markets also reduce the bargaining power of suppliers.

Threat Of New Entrants

The mortgage financing market has high barriers to entry, including regulatory requirements and the need for specialized expertise. Blackstone Mortgage Trust, Inc.'s strong reputation and established relationships with borrowers and suppliers reduce the threat of new entrants.

Intensity Of Rivalry

The mortgage financing market is competitive, with several established players. However, Blackstone Mortgage Trust, Inc.'s focus on high-quality borrowers and its ability to provide customized financing solutions differentiate it from its competitors and reduce the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 81.55%
Debt Cost 7.23%
Equity Weight 18.45%
Equity Cost 11.26%
WACC 7.98%
Leverage 441.87%

11. Quality Control: Blackstone Mortgage Trust, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Growth: 6.1

Quality: 7.1

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Momentum: 5.0

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Rithm Capital

A-Score: 6.8/10

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Blackstone Mortgage Trust

A-Score: 6.4/10

Value: 2.7

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Quality: 7.2

Yield: 10.0

Momentum: 5.5

Volatility: 8.7

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.88$

Current Price

19.88$

Potential

-0.00%

Expected Cash-Flows