Blackstone Mortgage Trust Announces Continued Momentum in Credit Outcomes

Rhea-AI Summary

Blackstone Mortgage Trust (NYSE: BXMT) reported significant progress in loan repayments and resolutions during the current quarter. The company collected $1.0 billion in total repayments and completed $0.4 billion in non-performing loan resolutions. Year-to-date resolutions reached $0.9 billion, with an additional $1.0 billion of non-performing loan resolutions in closing. These resolutions represent over 60% of total non-performing loans as of September 30, 2024, achieved at or above carrying values.

Positive

• Collected $1.0 billion in loan repayments quarter-to-date
• Completed $0.4 billion in non-performing loan resolutions
• Additional $1.0 billion of non-performing loan resolutions in closing
• Resolutions achieved at or above carrying values
• Over 60% of non-performing loans resolved or in closing

Negative

• Significant presence of non-performing loans in portfolio requiring resolution

Insights

Financial Analyst

This update reveals significant positive momentum in BXMT's credit portfolio management. The $1.0 billion in repayments and $0.4 billion in non-performing loan resolutions demonstrate robust progress in addressing credit concerns. Most notably, the resolution of over 60% of non-performing loans at or above carrying values suggests minimal credit losses, which is important for maintaining book value. The ability to redeploy this capital in the current higher-rate environment presents an opportunity to potentially enhance yields on new investments. The successful resolution of troubled assets, combined with strong repayment activity, indicates improving credit market conditions and effective portfolio management strategies. This could lead to reduced credit provisions and improved earnings stability in upcoming quarters.

NEW YORK--(BUSINESS WIRE)-- Blackstone Mortgage Trust, Inc. (NYSE: BXMT) today announced strong quarter-to-date progress on repayments and non-performing loan resolutions:

• $1.0 billion of total repayments¹ collected quarter-to-date
• $0.4 billion of non-performing loan resolutions² completed quarter to date, bringing total year-to-date resolutions to $0.9 billion
• $1.0 billion of additional non-performing loan resolutions in closing³
• Loan resolutions closed or in closing represent over 60% of total non-performing loans as of September 30, 2024, and are at or above carrying values, in aggregate

Katie Keenan, Chief Executive Officer, said, “The ongoing recovery and resurgence in capital markets activity continues to drive strong positive momentum in BXMT’s business. We are pleased to deliver these positive outcomes for our investors, which accelerate portfolio turnover with the redeployment of capital in today’s attractive investment environment.”

About Blackstone Mortgage Trust
Blackstone Mortgage Trust (NYSE: BXMT) is a real estate finance company that originates senior loans collateralized by commercial real estate in North America, Europe, and Australia. Our investment objective is to preserve and protect shareholder capital while producing attractive risk-adjusted returns primarily through dividends generated from current income from our loan portfolio. 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, depending on our view of the most prudent strategy available for each of our investments. We are externally managed by BXMT Advisors L.L.C., a subsidiary of Blackstone. Further information is available at www.bxmt.com.

About Blackstone
Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1.1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect BXMT’s current views with respect to, among other things, resolutions of non-performing loans. You can identify these forward-looking statements by the use of words such as “outlook,” “objective,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including that transactions not yet closed are subject to conditions, and there can be no assurance such transactions will be completed on their contemplated terms, or at all. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. BXMT believes these factors include but are not limited to those described under the section entitled “Risk Factors” in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, as such factors may be updated from time to time in its periodic filings with the Securities and Exchange Commission (“SEC”) which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in the filings. BXMT assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.

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1} Based on outstanding principal balance. Includes repayments received upon completion of asset and loan sales.
² Non-performing loan resolutions include the sales of assets and loans to third parties, loan restructurings, and real estate owned, and are based on net loan exposure of related loans as of the quarter-end prior to resolution. Net loan exposure represents loans that are included in BXMT’s consolidated financial statements, net of (i) asset specific debt, (ii) participations sold, (iii) cost-recovery proceeds, and (iv) CECL reserves on its loans receivable. All amounts related to loan resolutions are based on net loan exposure unless otherwise indicated.
³ Transactions not yet closed are subject to conditions, and there can be no assurance such transactions will be completed on their contemplated terms, or at all.

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Source: Blackstone Mortgage Trust, Inc.

FAQ

How much in loan repayments did BXMT collect in Q4 2024?

Blackstone Mortgage Trust (BXMT) collected $1.0 billion in total loan repayments quarter-to-date.

What percentage of BXMT's non-performing loans were resolved as of September 2024?

Over 60% of total non-performing loans as of September 30, 2024, were either resolved or in closing process.

How much in non-performing loan resolutions did BXMT complete year-to-date 2024?

BXMT completed $0.9 billion in non-performing loan resolutions year-to-date, with an additional $1.0 billion in closing.