Blackstone Mortgage Trust Files Q2 2024 10-Q

TL;DR

**BXMT Q2 2024 10-Q FILED.** Financials and operations detailed.

AI Summary

Blackstone Mortgage Trust, Inc. filed its 10-Q for the period ending June 30, 2024. The company, headquartered at 345 Park Avenue, New York, NY, reported its financial performance for the second quarter of 2024. The filing details its real estate investment trust operations and financial instruments.

Why It Matters

This filing provides investors with a detailed look at Blackstone Mortgage Trust's financial health and operational performance during the second quarter of 2024, impacting investment decisions.

Risk Assessment

Risk Level: medium — As a real estate investment trust, the company is subject to market fluctuations and interest rate risks inherent in the real estate and finance sectors.

Key Numbers

• 2024 Q2 — Reporting Period (Financial performance for the second quarter of 2024.)
• 12/31 — Fiscal Year End (Indicates the end of the company's fiscal year.)

Key Players & Entities

• BLACKSTONE MORTGAGE TRUST, INC. (company) — Filer
• 345 PARK AVENUE (location) — Business and Mail Address
• NEW YORK (location) — City
• 20240630 (date) — Period of Report
• 20240724 (date) — Filed as of Date

FAQ

Key Financial Figures

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

Filing Documents

• bxmt-20240630.htm (10-Q) — 3752KB
• exhibit1012q24.htm (EX-10.1) — 109KB
• exhibit1022q24.htm (EX-10.2) — 50KB
• exhibit3112q24.htm (EX-31.1) — 8KB
• exhibit3122q24.htm (EX-31.2) — 8KB
• exhibit3212q24.htm (EX-32.1) — 5KB
• exhibit3222q24.htm (EX-32.2) — 5KB
• exhibit9912q24.htm (EX-99.1) — 5KB
• bxmt-20240630_g1.gif (GRAPHIC) — 7KB
• bxmt-20240630_g2.jpg (GRAPHIC) — 57KB
• bxmt-20240630_g3.jpg (GRAPHIC) — 64KB
• 0001061630-24-000116.txt ( ) — 19922KB
• bxmt-20240630.xsd (EX-101.SCH) — 111KB
• bxmt-20240630_cal.xml (EX-101.CAL) — 107KB
• bxmt-20240630_def.xml (EX-101.DEF) — 626KB
• bxmt-20240630_lab.xml (EX-101.LAB) — 909KB
• bxmt-20240630_pre.xml (EX-101.PRE) — 806KB
• bxmt-20240630_htm.xml (XML) — 3467KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS 3 Consolidated Financial Statements (Unaudited): Consolidated Balance Sheets as of June 3 0 , 2024 and December 31, 2023 3 Consolidated Statements of Operations for the Three and Six Months Ended June 3 0 , 2024 and 2023 4 Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 3 0 , 2024 and 2023 5 Consolidated Statements of Changes in Equity for the Three Months Ended March 31, 2024 and 2023 and June 30, 2024 and 2023 6 Consolidated Statements of Cash Flows for the Six Months Ended June 3 0 , 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 10

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 49

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 81

CONTROLS AND PROCEDURES

ITEM 4. CONTROLS AND PROCEDURES 83

OTHER INFORMATION

PART II. OTHER INFORMATION

LEGAL PROCEEDINGS

ITEM 1. LEGAL PROCEEDINGS 84

RISK FACTORS

ITEM 1A. RISK FACTORS 84

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 84

DEFAULTS UPON SENIOR SECURITIES

ITEM 3. DEFAULTS UPON SENIOR SECURITIES 84

MINE SAFETY DISCLOSURES

ITEM 4. MINE SAFETY DISCLOSURES 84

OTHER INFORMATION

ITEM 5. OTHER INFORMATION 84

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) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 373,876 $ 350,014 Loans receivable 22,870,848 23,787,012 Current expected credit loss reserve ( 893,938 ) ( 576,936 ) Loans receivable, net 21,976,910 23,210,076 Real estate owned, net 60,018 — Other assets 225,795 476,088 Total Assets $ 22,636,599 $ 24,036,178 Liabilities and Equity Secured debt, net $ 12,096,705 $ 12,683,095 Securitized debt obligations, net 2,327,774 2,505,417 Asset-specific debt, net 1,120,760 1,000,210 Loan participations sold, net 100,442 337,179 Term loans, net 2,095,199 2,101,632 Senior secured notes, net 337,336 362,763 Convertible notes, net 296,486 295,847 Other liabilities 257,299 362,531 Total Liabilities 18,632,001 19,648,674 Commitments and contingencies — — Equity Class A common stock, $ 0.01 par value, 400,000,000 shares authorized, 173,619,498 and 173,209,933 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively 1,736 1,732 Additional paid-in capital 5,524,043 5,507,459 Accumulated other comprehensive income 10,328 9,454 Accumulated deficit ( 1,551,603 ) ( 1,150,934 ) Total Blackstone Mortgage Trust, Inc. stockholders' equity 3,984,504 4,367,711 Non-controlling interests 20,094 19,793 Total Equity 4,004,598 4,387,504 Total Liabilities and Equity $ 22,636,599 $ 24,036,178 Note: The consolidated balance sheets as of June 30, 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 June 30, 2024 and December 31, 2023, assets of the consolidated VIEs totaled $ 2.7 billion and $ 3.0 billion, respectively, and liabilities of the consolidated VIEs tot

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 collateralized loan obligations, or 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 holdi

Notes to Consolidated Financial Statements (continued) (Unaudited)

Notes to Consolidated Financial Statements (continued) (Unaudited) In 2017, we entered into a joint venture, or our Multifamily Joint Venture, with Walker & Dunlop Inc. to originate, hold, and finance multifamily bridge loans. Pursuant to the terms of the agreements governing the joint venture, Walker & 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 loan 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 circumst

Notes to Consolidated Financial Statements (continued) (Unaudited)

Notes to Consolidated Financial Statements (continued) (Unaudited) loss reserve to reflect the principle underlying the CECL model that all loans and similar assets have some inherent risk of loss, regardless of credit quality, subordinate capital, or other mitigating factors. 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 May 31, 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 asse