Earnings

Blackstone Mortgage Trust Widens Loss on Credit Reserves

The Tip Desk · July 30, 2026 · 2 min read

The real estate finance company recorded an $81.2 million net loss, or $(0.48) a share, as CECL reserves rose $106 million to $410 million.

Blackstone Mortgage Trust, Inc. (BXMT) reported an $81.2 million net loss for the second quarter of 2026, or $(0.48) a share, after a $6.3 million loss, or $(0.04) a share, in the first quarter.

The widening GAAP loss tracked a $134.4 million increase in the current expected credit loss reserve, compared with a $45.6 million increase in the year-ago quarter. Total expenses were $111.0 million. Distributable earnings were $0.31 a share. Distributable earnings prior to realized gains and losses were $0.48 a share.

Chief Executive Officer Tim Johnson said the quarter reflected continued execution of a goal of accelerating portfolio turnover and reallocating capital into high-conviction investment themes.

The company collected $1.2 billion of loan repayments, 99% of which were pre-2023 originations, including $1.0 billion in Europe. It deployed $1.4 billion of investments, including $1.1 billion of loan originations, $0.1 billion of net lease acquisitions at its share, and $0.1 billion of single-family homebuilder finance loans at its share. Residential, industrial, and net lease assets accounted for 78% of second-quarter investments and 80% of last-twelve-months investments.

BXMT established a Homebuilder Finance joint venture in the quarter, acquiring $0.1 billion of loans at its 45% share. The investment portfolio stood at $19.7 billion.

The loan portfolio was 97% performing, down from 98% in the first quarter after 99% in the fourth quarter of 2025. The watchlist saw a 23% net reduction, with one upgrade and three downgrades, and three new impaired loans, two of which were office. One impaired multifamily loan was resolved via transfer to owned real estate.

CECL reserves increased $106 million quarter over quarter to $410 million, including $219 million of asset-specific reserves. Book value per share declined to $19.31 from $20.20.

Total net revenue rose to $158.1 million from $133.6 million a year earlier. Income from loans and other investments, net declined to $82.6 million from $94.8 million. Revenue from owned real estate more than doubled to $75.5 million from $38.8 million.

The company issued $0.5 billion of senior secured notes due 2031, closed one new non-mark-to-market facility, and reported 88% non-MTM debt with no capital-markets MTM provisions, $1.2 billion of liquidity, and a 3.9x debt-to-equity ratio. It paid a $0.47 dividend per share.

More on BXMT

September 28, 2026 QBook Stronger demand supports expansion as pricing diverges

BLACKSTONE MORTGAGE TRUST, INC. — all coverage and financials