Blackstone Mortgage Trust Reports Unexpected Q3 Net Loss
Blackstone Mortgage Trust reported a $327M net loss for the third quarter, news that sent stocks tumbling.
Shares were at $9.95 during premarket trading on Thursday. Though they had rebounded during trading hours to just under $11 per share, they were still down 11% over the last month and down roughly 42% over the last six months. As of about 3 p.m. ET Thursday, BXMT shares were trading up 3.75%, or $10.94 per share.
Leadership pointed to higher interest rates and challenges facing the office market.
“While higher rates and an elongated office recovery impacted our reserves and book value, our watchlist is now at the lowest level since 2019, and the remainder of our legacy portfolio is performing well and shrinking rapidly,” Blackstone Mortgage Trust CEO Tim Johnson said in a statement.
The company impaired roughly $800M of loans on its books, the vast majority being office assets, indicating that it still has work to do balancing its portfolio, Johnson said on an earnings call Thursday.
Leadership said it is still on track to meet or exceed its previously announced goal of reducing office and legacy loans by 40% by year-end. Johnson said higher interest rates will have the greatest impact on some of the REIT’s pre-2023 investments, which is why it’s prioritizing the sale of older loans.
Blackstone Mortgage Trust’s total net revenue rose to $141.9M from $132.6M in the same period in 2025, but interest and related income fell to $280.6M from approximately $346M a year ago, below the Visible Alpha consensus of $293.5M, according to Seeking Alpha.
UPDATE, OCT. 29, 3 P.M. ET: This story has been updated with additional context about BXMT’s stock price.
Source: www.bisnow.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.