Blackstone Mortgage Trust (BXMT): Loan Book, Ratings, Dividend

The dividend against three kinds of earnings, seven quarters

BXMT publishes two versions of its non-GAAP earnings: a headline “Distributable Earnings” and one that leaves out realized gains and losses. The company says Distributable Earnings “mirrors the terms” of its management agreement and that it considers both measures when it declares a dividend. CECL reserves are left out of Distributable Earnings until a loss is realized, which in practice means a charge-off; that is why Q4 2025, with $433.9 million of charge-offs, shows $(2.07) while the quarter's GAAP result was positive $0.24. Note that BXMT named the second measure “before charge-offs” until Q4 2025 and “before realized gains and losses” from Q1 2026.

Annual dividends declared were $2.48 in 2023, $2.18 in 2024 and $1.88 in 2025 (10-Ks). Book value per share is down $2.56, or 11.7%, since December 31, 2024 (our arithmetic) while the dividend per share stayed flat for seven quarters. In the second quarter the dividend cost $79.2 million; Distributable Earnings were $51.7 million and the version before realized gains and losses was $80.4 million. The 10-Q's book value includes $2.43 a share of CECL reserves and excludes $0.76 a share of accumulated depreciation on owned real estate, so book value would be about $3.19 a share higher if reserves and depreciation were added back (our arithmetic, not a measure the company reports). The last reported share price in the 10-Q was $16.95 on June 30, 2026, 88% of book value, and the $1.88 annual dividend was 11.1% of that price (our arithmetic). We take no view on whether that price is right.

Risk ratings 1 to 5: seven quarters

BXMT rates every loan from 1 (“Very Low Risk”) to 5 (“Impaired/Loss Likely”); a 4 is “High Risk/Potential for Loss.” Loans rated 5 are assessed one by one and get a specific reserve; rated 3 and 4 loans sit in the general reserve. The weighted-average rating was 3.0 at both December 31, 2025 and June 30, 2026. The counts below are from the rating tables in each filing.

The shares in the last column are our arithmetic from net book value. Two things in the table are easy to miss. First, loans rated 1 have almost disappeared (11 loans and $1.92 billion at the end of 2024, one loan and $60.9 million now) while the size of the book fell 9% (our arithmetic), so the improvement in the 4 and 5 share is not coming from upgrades to the top of the scale. Second, the big step down at December 31, 2025 came from resolutions: the 10-K reports eight impaired loans resolved with $338.0 million of charge-offs and three subordinate loans written off for $218.1 million.

The 26 loans rated 4 or 5, and where each one was

The 10-Q does not name borrowers, but its loan-by-loan table gives type, city, origination date, size, coupon, last maturity and rating for every loan. We matched each loan across the last six filings by origination date and property type (script and output saved with the data). Amounts are principal balance in millions of dollars, rounded as in the filing. “Cost recovery” loans show no coupon because the 10-Q accounts for them under the cost-recovery method. A rating path reads left to right: March 31, 2025, June 30, 2025, September 30, 2025, December 31, 2025, March 31, 2026, June 30, 2026. Where a loan was split into a senior and a subordinate piece in a modification, the earlier digits are those of the whole loan.

What the list shows:

• Seven of the 26, $790 million of principal, reach their last extended maturity on or before December 31, 2026 (our arithmetic): the Los Angeles studio loan whose last maturity was February 1, 2026 and is still on the June 30 book rated 5, the Nashville office (July 9), Denver office (August 9), Orange County office senior and subordinate pieces (September 9), the Chicago office (December 9) and the San Francisco life sciences loan (December 9). A last maturity is not a default date; the 10-Q says maximum maturity “assumes all extension options are exercised by the borrower” and that loans “may be repaid prior to such date.”
• The biggest single loan on the list is the Chicago office loan: $345 million of principal and $347 million of net book value. It was rated 4 for five quarters and moved to 5 in Q2 2026, at a cash coupon of benchmark plus 1.75%. Together with the Nashville ($63 million) and San Francisco ($92 million) loans it makes up the $502.0 million of newly impaired loans.
• Coupons on the weakest loans are low. The Berlin office pays benchmark plus 1.00%; one New York office loan is written as SOFR minus 1.30% with a 3.50% floor, which the 10-Q puts at an all-in 2.35%. Five subordinate loans (rated 5, $109 million of principal) pay nothing the 10-Q counts, under cost recovery.
• Property type: 17 offices ($1.90 billion of net book value), four life sciences or studio loans ($286 million), three multifamily ($344 million), one hotel ($99 million) and one mixed-use ($92 million) (our arithmetic from the table).

Impaired loans, non-accrual and the CECL reserve

BXMT has no line called “non-accrual.” Its equivalent is a loan rated 5 (impaired), whose interest income stops: the 10-Q says that when the three new loans were impaired “the income accrual was suspended, as the recovery of interest income and principal was doubtful,” after $7.1 million of interest had been booked in the quarter. At June 30, 2026 the nine impaired loans had an amortized cost of $695.2 million, net of cost-recovery proceeds, and a specific reserve of $219.5 million, 32% of that cost (our arithmetic). Floating-rate impaired principal of $699.7 million is excluded from the company's interest-rate sensitivity table.

In Q2 2026 the specific reserve rose by $134.6 million while the general reserve fell $28.3 million, the net being a $106.2 million increase on loans and a $134.4 million charge to income. The 10-Q says the general reserve fell mainly on changes in risk ratings and a smaller book, and that it changed how it pools its former “Unique Loans” (those loans were folded into the U.S. and non-U.S. pools with no material effect on the total). Its outlook sentence is that future increases are “expected to be primarily the result of incremental loan impairments” and “concentrated in our loans receivable with a risk rating of” 4. The reserve for unfunded commitments, $12.6 million, is separate and sits in other liabilities. One loan modification in the last twelve months met the ASC 326 disclosure test: a life sciences or studio loan extended by 4.3 years with the rate cut by 3.56 points, split into a senior piece now rated 4 and a subordinate piece rated 5.

The company's own words on why office loans are the issue: “The office sector recovery in certain markets has continued to lag other commercial real estate sectors, which has, in certain cases, extended business plans on transitional properties and impacted their performance, affecting some borrowers’ willingness and ability to continue to support their assets.”

The 14 properties BXMT now owns

When a loan is foreclosed or modified so that BXMT controls the property, it moves to “owned real estate.” The number went from seven at December 31, 2024 to 14. The 10-Q lists each one; amounts are acquisition-date fair value in millions of dollars.

The 14 add to $1,474.9 million at acquisition; the balance sheet carries owned real estate, net, at $1,297.0 million, and the MD&A text rounds the carrying value to $1.4 billion, so the three figures are not the same measure. Nine of the 14 are offices, with $836.6 million of the acquisition value (our arithmetic). Revenue from owned real estate was $75.5 million in Q2 2026 against $81.4 million of expenses including depreciation; six-month revenue was $150.1 million and the six-month loss from owned real estate $13.3 million. Future minimum rents on the office properties total $436.4 million. In June 2026 BXMT took title to the Dallas multifamily property by foreclosure, charging off $28.6 million of reserves; in the first half it took two properties and charged off $76.2 million against loans with a carrying value of $267.2 million.

Property type, geography, floating rate and credit statistics

One other international loan ($61 million) is not shown. Net loan exposure is principal less $972.6 million of asset-specific debt, $20.3 million of cost-recovery proceeds and the $397.8 million reserve. By net book value, 43% of the loan book is outside the U.S. (our arithmetic). The Midwest and Northwest rows and the Europe row are sums of rows in the 10-Q (our arithmetic).

• Floating versus fixed: 97% of principal is floating, 3% fixed. The weighted-average cash coupon is benchmark plus 3.13% and the all-in yield benchmark plus 3.35%, down from 3.46% and 3.78% at December 31, 2024. That blended spread mixes currencies: the 97 SOFR loans ($9.99 billion) earn SOFR plus 3.05%, the 16 sterling loans SONIA plus 3.20%, the 14 euro loans EURIBOR plus 2.60% and six loans in other currencies 4.06%. The figure excludes the loans on cost recovery.
• Index floors: $4.76 billion of principal has no floor, $6.12 billion has a floor of 2.01% to 3.00%; the weighted-average floor on floating loans is 1.53%.
• Leverage on the borrower side: weighted-average origination loan-to-value is 65% (62.3% at December 31, 2024), excluding impaired loans. The LTV is as of origination, not today, and many of the loans rated 4 or 5 were made between 2017 and 2021.
• Prepayment: 47% of principal carries yield maintenance or other prepayment restrictions and 53% can be repaid without penalty (40% and 60% at December 31, 2025). Weighted-average maximum maturity is 2.8 years, up from 2.1 years at December 31, 2024.
• Unfunded commitments: $1.11 billion on 53 loans, $680.3 million of it covered by committed or identified financing, leaving $427.4 million net.

Debt: what is due in the next 24 months

At June 30, 2026 BXMT had $8.72 billion of secured credit facilities from 16 lenders (weighted-average maturity January 2029, all-in cost benchmark plus 1.79%), $2.75 billion of securitized debt (four CLOs and one European loan securitization), $972.6 million of asset-specific debt, $1.92 billion of term loans, $1.24 billion of senior secured notes, $266.2 million of convertible notes and $38.4 million of other secured debt. In the first half it issued a new CLO with $880 million of senior securities (2026 FL6), repaid $275.6 million of securitized debt, borrowed $770.8 million under a new B-9 term loan to repay the B-6 term loan, and issued $450.0 million of 6.250% senior secured notes due June 1, 2031 (8-K filed May 19, 2026).

Secured and asset-specific debt are allocated on the last maturity of the loans that collateralize them, assuming every extension is used, so they roll off as loans are repaid. The total excludes $2.7 billion of securitized debt, which needs no cash from BXMT. The 10-Q's own buckets are $4.61 billion due in under one year (including $668.2 million of interest), $4.47 billion in one to three years, $6.37 billion in three to five years and $0.90 billion beyond; unfunded loan commitments of $233.0 million fall in the first bucket.

The pieces that are not tied to a specific loan are the notes. The 3.75% senior secured notes ($335.3 million) mature January 15, 2027 and the 5.50% convertibles ($266.2 million) March 15, 2027: $601.5 million in all (our arithmetic) against $1.24 billion of liquidity ($432.8 million of cash and $807.5 million of undrawn secured facilities). The convertibles convert at $36.27 a share against the $16.95 last price in the 10-Q, and they can be converted before December 14, 2026 only in specific circumstances. The term loans (B-7 May 2029, B-9 December 2030, B-8 December 2032) amortize 1.0% a year. The notes and term loans carry a covenant that debt not exceed 83.33% of total assets; the bank facilities require tangible net worth of at least $2.8 billion (as the agreements define it) against $3.26 billion of stockholders' equity, and a ratio of EBITDA to fixed charges of 1.3 to 1.0. The 10-Q says BXMT was in compliance with those covenants at June 30, 2026. According to the presentation, 88% of debt has no capital markets mark-to-market provisions.

What the 10-Q says about refinancing, and what it leaves out

We searched the 10-Q for “refinanc”. It appears once, about a joint venture refinancing its own portfolio. The 10-Q has no passage on a 2026 or 2027 refinancing wall for borrowers, and no schedule of loan maturities. What it gives instead:

• The loan table's last-maturity dates. Our sums from it: 21 loans with $2.56 billion of principal (15% of the book) have a last maturity on or before December 31, 2026, 25 loans with $3.49 billion in 2027, 14 with $2.06 billion in 2028 and 73 with $9.31 billion from 2029 (our arithmetic from rows rounded to $1 million). Only seven of the 21 in 2026 are rated 4 or 5.
• Repayments are running. The July 30, 2026 presentation reports $1.2 billion of repayments in Q2, 99% of them from loans originated before 2023 and $1.0 billion in Europe, and the chief executive's quote in the press release is about “accelerating portfolio turnover and reallocating capital into high-conviction investment themes.” In the six months the loan book shrank from $18.15 billion to $17.41 billion of principal, while BXMT put $1.4 billion into new investments in Q2, 78% of it in residential, industrial and net lease assets.
• Where new money goes. Besides loans, BXMT is putting capital into a 75%-owned net lease joint venture ($185.9 million invested, 306 properties, leases averaging over 15 years remaining), a 35% share of two bank loan portfolios, a new 45% homebuilder finance joint venture, a $66.7 million first-loss credit-linked note on UK commercial loans paying SONIA plus 7.00%, and a $75 million commitment to a Blackstone real estate debt fund that had not called capital by June 30.
• A related-party loan. In Q2 2026 one senior loan to a borrower controlled by Blackstone-advised vehicles was modified, with an extended maturity, a lower contractual rate and “a meaningful additional commitment and credit support from the borrower”; the terms “were negotiated by our third-party co-lenders” and BXMT says it will “forgo all non-economic rights under the loan, including voting rights, so long as the Blackstone-advised investment vehicles control the borrower.” The 10-Q does not say which loan. The management agreement (term through December 19, 2026, renewed automatically for one year) paid the manager $31.2 million in six months and no incentive fee.

What a holder or reader can do with this

This is analysis of public documents, not investment, legal or tax advice. The filings let you check these things yourself.

• Pick one earnings measure and stay with it. Dividend $0.47; Distributable Earnings $0.31; before realized gains and losses $0.48; GAAP $(0.48). The $0.17 gap between the last two is the quarter's charge-offs and realized losses, which BXMT leaves out until they are booked.
• Read the 5s and the 4s separately. Rated 5 loans already have a specific reserve (32% of cost). The company says further reserve increases are expected to come from loans now rated 4: 17 loans, $2.03 billion, 13 of them offices or life sciences loans.
• Track the dated items in the loan table. The Chicago office loan ($345 million), the Orange County office and the Nashville loan reach their last maturities on dates in 2026 and 2027; each quarter's 10-Q shows whether they were repaid, extended or moved to owned real estate.
• Watch owned real estate. It went from seven to 14 properties in 18 months and is a drag on earnings today ($13.3 million six-month loss); sales of those properties are where charge-offs become realized losses in Distributable Earnings.
• Dates: the Q3 2026 10-Q and earnings release (last year BXMT filed its Q3 10-Q on October 29, 2025); December 1, 2026 first coupon on the 2031 notes; December 14, 2026 end of the restricted convertible period; December 19, 2026 end of the current management agreement term; January 15, 2027 and March 15, 2027 note maturities.
• Related reading on this site: the one-table comparison of nine listed lenders is commercial mortgage REIT dividends and delinquencies; a bridge lender with a different problem is Arbor Realty Trust; how the loans that mature in 2026 and 2027 fit the wider market is in CRE debt maturity wall; and the non-traded Blackstone vehicle is in our BREIT review. If you hold shares through a non-traded vehicle instead, see non-traded versus publicly traded REITs.

FAQ

All figures are from Blackstone Mortgage Trust, Inc. (CIK 1061630) SEC filings read on EDGAR on October 14, 2026: Form 10-Q for the quarter ended June 30, 2026 (accession 0001061630-26-000069, filed July 30, 2026), March 31, 2026 (0001061630-26-000029), September 30, 2025 (0001061630-25-000128), June 30, 2025 (0001061630-25-000101) and March 31, 2025 (0001061630-25-000054); Forms 10-K for 2025 (0001061630-26-000009) and 2024 (0001061630-25-000024); Form 8-K of July 30, 2026 with the press release and presentation (0001061630-26-000071), of February 11, 2026 (0001061630-26-000011), of May 5, 2026 (0001193125-26-207118) and of May 19, 2026 (0001193125-26-231141). The loan-level tables were parsed from the 10-Qs by a script saved with the data; row sums, shares, coverage ratios, maturity buckets and the matching of loans across quarters are our arithmetic, and loan rows are rounded to $1 million in the filings. The company's price, $16.95, is the June 30, 2026 figure in the 10-Q. This is analysis of public documents, not investment, legal or tax advice.