Blackstone Mortgage Trust, Inc. Files 10-Q for Q1 2024

AI Summary

BLACKSTONE MORTGAGE TRUST, INC. (BXMT) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. Blackstone Mortgage Trust, Inc. filed its 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's fiscal year ends on December 31. The filing was made on April 24, 2024. The company's principal business address is 345 Park Avenue, 24th Floor, New York, NY 10154.

Why It Matters

For investors and stakeholders tracking BLACKSTONE MORTGAGE TRUST, INC., this filing contains several important signals. This 10-Q filing provides investors with a detailed look at Blackstone Mortgage Trust's financial health, operational performance, and strategic positioning during the first quarter of 2024. Understanding the specifics within this report is crucial for assessing the company's current financial standing, identifying potential risks, and making informed investment decisions regarding BXMT.

Risk Assessment

Risk Level: medium — BLACKSTONE MORTGAGE TRUST, INC. shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains detailed financial information but does not usually include significant new strategic announcements or material events that would drastically alter the risk profile in the short term.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to understand BXMT's performance and outlook for Q1 2024.

Key Numbers

• 2024-03-31 — Period End Date (Conformed period of report)
• 2024-04-24 — Filing Date (Filed as of date)
• 12/31 — Fiscal Year End (Fiscal year end)

Key Players & Entities

• BLACKSTONE MORTGAGE TRUST, INC. (company) — Filer name
• BXMT (company) — Ticker symbol
• 2024-03-31 (date) — Conformed period of report
• 2024-04-24 (date) — Filed as of date
• 345 PARK AVENUE (address) — Business address
• NEW YORK (location) — Business address city
• NY (location) — Business address state
• 10154 (postal_code) — Business address zip

FAQ

Industry Context

Blackstone Mortgage Trust, Inc. operates as a real estate investment trust (REIT) primarily focused on originating and investing in commercial real estate debt. REITs are companies that own, operate, or finance income-generating real estate.

Regulatory Implications

As a publicly traded company, Blackstone Mortgage Trust, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC), including the filing of quarterly reports on Form 10-Q.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024.
2. Review any disclosures regarding loan portfolio performance and credit quality.
3. Examine management's discussion and analysis for insights into strategy and outlook.

Key Dates

• 2024-03-31: Quarterly Period End — End of the reporting period for the 10-Q filing.
• 2024-04-24: Filing Date — Date the 10-Q report was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, following the 2023 annual report.

Key Financial Figures

• $0.01 — tered Class A common stock, par value $0.01 per share BXMT New York Stock Exchange

Filing Documents

• bxmt-20240331.htm (10-Q) — 3528KB
• exhibit1011q24.htm (EX-10.1) — 924KB
• exhibit3111q24.htm (EX-31.1) — 8KB
• exhibit3121q24.htm (EX-31.2) — 8KB
• exhibit3211q24.htm (EX-32.1) — 5KB
• exhibit3221q24.htm (EX-32.2) — 5KB
• exhibit9911q24.htm (EX-99.1) — 5KB
• bxmt-20240331_g1.gif (GRAPHIC) — 7KB
• bxmt-20240331_g2.jpg (GRAPHIC) — 57KB
• bxmt-20240331_g3.jpg (GRAPHIC) — 64KB
• 0001061630-24-000064.txt ( ) — 18219KB
• bxmt-20240331.xsd (EX-101.SCH) — 120KB
• bxmt-20240331_cal.xml (EX-101.CAL) — 96KB
• bxmt-20240331_def.xml (EX-101.DEF) — 613KB
• bxmt-20240331_lab.xml (EX-101.LAB) — 1037KB
• bxmt-20240331_pre.xml (EX-101.PRE) — 861KB
• bxmt-20240331_htm.xml (XML) — 3271KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 3 Consolidated Financial Statements (Unaudited): Consolidated Balance Sheets as of March 3 1 , 202 4 and December 31, 20 23 3 Consolidated Statements of Operations for the Three Months Ended March 3 1 , 202 4 and 202 3 4 Consolidated Statements of Comprehensive Income for the Three Months Ended March 3 1 , 202 4 and 202 3 5 Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 202 4 and 202 3 6 Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 4 and 202 3 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 47

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 77

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 79

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 80

RISK FACTORS

ITEM 1A. RISK FACTORS 80

UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES, USE OF PROCEEDS, AND ISSUER PURCHASES OF EQUITY SECURITIES 80

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 80

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 80

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 80

EXHIBITS

ITEM 6. EXHIBITS 85

SIGNATURES

SIGNATURES 86 TABLE OF CONTENTS Website Disclosure We use our website (www.blackstonemortgagetrust.com) as a channel of distribution of company information. The information we post through this channel may be deemed material. Accordingly, investors should monitor this channel, in addition to following our press releases, Securities and Exchange Commission, or SEC, filings and public conference calls, and webcasts. In addition, you may automatically receive email alerts and other information about Blackstone Mortgage Trust when you enroll your email address by visiting the "Contact Us and Email Alerts" section of our website at http://ir.blackstonemortgagetrust.com. The contents of our website and any alerts are not, however, a part of this report.

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Blackstone Mortgage Trust, Inc. Consolidated Balance Sheets (Unaudited) (in thousands, except share data) March 31, 2024 December 31, 2023 Assets Cash and cash equivalents $ 413,986 $ 350,014 Loans receivable 23,189,312 23,787,012 Current expected credit loss reserve ( 751,370 ) ( 576,936 ) Loans receivable, net 22,437,942 23,210,076 Real estate owned, net 60,203 — Other assets 353,732 476,088 Total Assets $ 23,265,863 $ 24,036,178 Liabilities and Equity Secured debt, net $ 12,387,289 $ 12,683,095 Securitized debt obligations, net 2,328,073 2,505,417 Asset-specific debt, net 1,061,380 1,000,210 Loan participations sold, net 334,909 337,179 Term loans, net 2,098,415 2,101,632 Senior secured notes, net 337,083 362,763 Convertible notes, net 296,166 295,847 Other liabilities 257,961 362,531 Total Liabilities 19,101,276 19,648,674 Commitments and contingencies — — Equity Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 173,582,305 and 173,209,933 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 1,736 1,732 Additional paid-in capital 5,515,820 5,507,459 Accumulated other comprehensive income 9,870 9,454 Accumulated deficit ( 1,382,673 ) ( 1,150,934 ) Total Blackstone Mortgage Trust, Inc. stockholders' equity 4,144,753 4,367,711 Non-controlling interests 19,834 19,793 Total Equity 4,164,587 4,387,504 Total Liabilities and Equity $ 23,265,863 $ 24,036,178 Note: The consolidated balance sheets as of March 31, 2024 and December 31, 2023 include assets of consolidated variable interest entities, or VIEs, that can only be used to settle obligations of each respective VIE, and liabilities of consolidated VIEs for which creditors do not have recourse to Blackstone Mortgage Trust, Inc. As of March 31, 2024 and December 31, 2023, assets of the consolidated VIEs totaled $ 2.8 billion and $ 3.0 billion, respectively, and liabilities of the consolidated VIEs

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 1. ORGANIZATION References herein to "Blackstone Mortgage Trust," "Company," "we," "us" or "our" refer to Blackstone Mortgage Trust, Inc., a Maryland corporation, and its subsidiaries unless the context specifically requires otherwise. Blackstone Mortgage Trust is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe, and Australia. Our portfolio is composed primarily of loans secured by high-quality, institutional assets in major markets, sponsored by experienced, well-capitalized real estate investment owners and operators. These senior loans are capitalized by accessing a variety of financing options, including borrowing under our credit facilities, issuing CLOs or single-asset securitizations, and corporate financing, depending on our view of the most prudent financing option available for each of our investments. We are not in the business of buying or trading securities, and the only securities we own are the retained interests from our securitization financing transactions, which we have not financed. We are externally managed by BXMT Advisors L.L.C., or our Manager, a subsidiary of Blackstone Inc., or Blackstone, and are a real estate investment trust, or REIT, traded on the New York Stock Exchange, or NYSE, under the symbol "BXMT." Our principal executive offices are located at 345 Park Avenue, 24th Floor, New York, New York 10154. We conduct our operations as a REIT for U.S. federal income tax purposes. We generally will not be subject to U.S. federal income taxes on our taxable income to the extent that we annually distribute all of our net taxable income to stockholders and maintain our qualification as a REIT. We also operate our business in a manner that permits us to maintain an exclusion from registration under the Investment Company Act of 1940, as amended. We are organized as a holding company and conduct our business p

Notes to Consolidated Financial Statements (continued) (Unaudited)

Notes to Consolidated Financial Statements (continued) (Unaudited) Dunlop contributed 15 % of the venture's equity capital and we contributed 85 %. We consolidate the Multifamily Joint Venture as we have a controlling financial interest. The non-controlling interests included on our consolidated balance sheets represent the equity interests in our Multifamily Joint Venture that are owned by Walker & Dunlop. A portion of our Multifamily Joint Venture's consolidated equity and results of operations are allocated to these non-controlling interests based on Walker & Dunlop's pro rata ownership of our Multifamily Joint Venture. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may ultimately differ materially from those estimates. Revenue Recognition Interest income from our loans receivable portfolio is recognized over the life of each investment using the effective interest method and is recorded on the accrual basis. Recognition of fees, premiums, and discounts associated with these investments is deferred and recorded over the term of the loan as an adjustment to yield. Income accrual is generally suspended for loans at the earlier of the date at which payments become 90 days past due or when, in our opinion, recovery of income and principal becomes doubtful. Interest received is then recorded as income or as a reduction in the amortized cost basis, based on the specific facts and circumstances, until accrual is resumed when the loan becomes contractually current and performance is demonstrated to be resumed. In addition, for loans we originate, the related origination expenses are deferred and recognized as a reduct

Notes to Consolidated Financial Statements (continued) (Unaudited)

Notes to Consolidated Financial Statements (continued) (Unaudited) We estimate our CECL reserves primarily using the Weighted-Average Remaining Maturity, or WARM method, which has been identified as an acceptable loss-rate method for estimating CECL reserves in FASB Staff Q&A Topic 326, No. 1. The WARM method requires us to reference historic loan loss data across a comparable data set and apply such loss rate to each of our loans over their expected remaining term, taking into consideration expected economic conditions over the relevant timeframe. We apply the WARM method for the majority of our loan portfolio, which consists of loans that share similar risk characteristics. In certain instances, for loans with unique risk characteristics, we may instead use a probability-weighted model that considers the likelihood of default and expected loss given default for each such individual loan. Application of the WARM method to estimate CECL reserves requires judgment, including (i) the appropriate historical loan loss reference data, (ii) the expected timing and amount of future loan fundings and repayments, and (iii) the current credit quality of our portfolio and our expectations of performance and market conditions over the relevant time period. To estimate the historic loan losses relevant to our portfolio, we have augmented our historical loan performance, with market loan loss data licensed from Trepp LLC. This database includes commercial mortgage-backed securities, or CMBS, issued since January 1, 1999 through February 29, 2024. Within this database, we focused our historical loss reference calculations on the most relevant subset of available CMBS data, which we determined based on loan metrics that are most comparable to our loan portfolio including asset type, geography, and origination loan-to-value, or LTV. We believe this CMBS data, which includes month-over-month loan and property performance, is the most relevant, available, and comparable dataset to

Notes to Consolidated Financial Statements (continued) (Unaudited)

Notes to Consolidated Financial Statements (continued) (Unaudited) as we consider the expected timing of future funding obligations over the estimated life of the loan. The considerations in estimating our CECL reserve for unfunded loan commitments are similar to those used for the related outstanding loans receivable. Credit Quality Indicator Our risk rating is our primary credit quality indi