Key Highlights

  • Distributable earnings of USD 0.38 beat the consensus estimate of USD 0.24, with a GAAP loss of USD 1.95.
  • Net revenue of USD 141.9 million trailed the consensus estimate of USD 148.6 million, though up from USD 132.6 million.
  • The credit loss reserve rose by USD 264.8 million in the quarter, lifting the balance to USD 597.3 million.
  • Book value stood at USD 17.06 per share, and a fourth quarter dividend of USD 0.30 per share was declared.

Blackstone Mortgage Trust, Inc. (NYSE:BXMT) reported third quarter 2026 Distributable Earnings of USD 0.38 per share, a non-GAAP measure, compared with a consensus estimate of USD 0.24. Distributable Earnings prior to realized gains and losses were USD 0.42 per share. On a GAAP basis the company recorded a net loss attributable to common stockholders of USD 327.0 million, or USD 1.95 per share, against net income of USD 0.37 per share a year earlier. Total net revenue was USD 141.9 million, below the consensus estimate of USD 148.6 million, though up from USD 132.6 million in the prior year period.

Reserve Build, Loan Sale and Real Estate Impairment

The GAAP loss traces to three non-cash or transaction related items. The company booked a USD 264.8 million increase in its CECL credit loss reserve, a USD 63.9 million valuation adjustment on eight whole loans agreed for sale, and a USD 36.4 million impairment on owned real estate. The loans were carried at USD 679.5 million before the adjustment and carry net sale proceeds of USD 615.6 million. Six are backed by office assets and two by multifamily assets, and the sale closed after quarter end.

Net income from loans and other investments fell to USD 64.4 million from USD 98.9 million, as interest and related income dropped to USD 280.6 million from USD 346.0 million. Revenue from owned real estate more than doubled to USD 77.5 million, though expenses from owned real estate also rose to USD 81.2 million. Held-for-investment loans totaled USD 14.56 billion, down from USD 18.07 billion at year end, and the weighted-average risk rating moved to 3.1 from 3.0.

Dividend, Leverage and Liquidity Position

The company declared a third quarter dividend of USD 0.47 per share and, in October, declared a fourth quarter dividend of USD 0.30 per share, payable on January 15, 2027 to holders of record on December 31, 2026. Book value was USD 17.06 per share after cumulative reserves of USD 3.64 per share. During the first nine months the company repurchased 2.77 million shares for USD 39.8 million, leaving USD 109.8 million of authorization.

Liquidity stood at USD 1.3 billion. The debt-to-equity ratio was 3.9x, unchanged from year end, while the total leverage ratio, which includes securitizations, rose to 4.9x from 4.5x. Unfunded loan commitments were USD 951.0 million across 47 loans, with USD 539.6 million of committed or identified financing against them.

Credit and Capital Data Points Ahead

Several figures frame the next report. The fourth quarter dividend of USD 0.30 per share is USD 0.17 below the third quarter level, and its January 15, 2027 payment date is fixed. Twelve loans carry the top risk rating of 5, with an amortized cost of USD 1.33 billion and net loan exposure of USD 879.1 million.

Further markers include the weighted-average risk rating of 3.1, the cumulative reserve of USD 3.64 per share inside book value, and the total leverage ratio of 4.9x. Net unfunded commitments of USD 411.4 million also carry a weighted-average future funding period of 1.6 years.