Blackstone Mortgage Trust, Inc. reported a net loss of $81.2 million for the second quarter of 2026, translating to a loss per share of $0.48, compared to a net income of $7.0 million, or $0.04 per share, in the same period last year. The company's total revenue for the quarter was $158.1 million, up from $133.6 million in the prior year, driven by increased revenue from owned real estate, which rose to $75.5 million from $38.8 million. However, interest and related income decreased to $309.7 million from $359.5 million, reflecting a decline in the weighted-average principal balance of loans and an increase in interest expenses.
In terms of financial position, Blackstone Mortgage Trust's total assets decreased to $19.4 billion as of June 30, 2026, down from $20.0 billion at the end of 2025. Loans receivable, net of reserves, also fell to $16.9 billion from $17.8 billion, primarily due to an increase in the current expected credit loss (CECL) reserve, which rose to $397.8 million from $284.4 million. The increase in the CECL reserve was attributed to impairments on several loans, particularly in the office sector, which has been slower to recover compared to other commercial real estate sectors.
Strategically, the company has made significant moves, including the acquisition of two real estate assets through foreclosure transactions, valued at approximately $191 million. Additionally, Blackstone Mortgage Trust entered into a joint venture with a Blackstone-advised investment vehicle to acquire a portfolio of construction loans, further diversifying its investment strategy. The company also reported a total of 14 owned real estate assets as of June 30, 2026, compared to 12 at the end of 2025.
Operationally, Blackstone Mortgage Trust's loan portfolio consisted of 133 loans with a principal balance of $17.4 billion, and 97% of these loans earned a floating rate of interest, primarily indexed to SOFR. The company reported a weighted-average risk rating of 3.0 for its loan portfolio, indicating a moderate level of risk. The firm also maintained a robust asset management relationship with borrowers, which it believes will help maximize portfolio performance during periods of economic volatility.
Looking ahead, Blackstone Mortgage Trust anticipates potential increases in its CECL reserves depending on the performance of its loan portfolio and broader market conditions. The company remains committed to its strategy of originating and managing senior loans secured by high-quality commercial real estate, leveraging the expertise of its external manager, Blackstone Inc. The firm continues to monitor market conditions closely to inform its capital raising and investment strategies.
About BLACKSTONE MORTGAGE TRUST, INC.
Blackstone Mortgage Trust, Inc. is a real estate finance company specializing in originating, acquiring, and managing senior loans and debt investments secured by commercial real estate in North America, Europe, and Australia. Operating as a REIT, it focuses on floating-rate, first-priority mortgage loans backed by institutional-quality assets. Externally managed by a Blackstone subsidiary, the company leverages Blackstone’s global real estate expertise and capital to deliver risk-adjusted returns through diversified lending and financing strategies.
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