Blackstone Mortgage Trust Reports $204.1 Million Net Loss for Fiscal Year 2024

Blackstone Mortgage Trust, Inc. (BXMT) reported a net loss of $204.1 million, or $1.17 per share, for the fiscal year ending December 31, 2024, a significant decline compared to a net income of $246.6 million, or $1.43 per share, in the previous year. The company's Distributable Earnings also reflected a loss of $5.5 million, or $0.03 per share, while Distributable Earnings prior to charge-offs were $372.8 million, or $2.15 per share. The total dividends declared during the year amounted to $377.8 million, or $2.18 per share, down from $2.48 per share in 2023. The decrease in profitability was attributed to a decline in interest income and an increase in current expected credit loss (CECL) reserves, which rose by $157 million during the year.

In terms of operational developments, Blackstone Mortgage Trust originated or acquired $431.9 million in loans during 2024, with total loan fundings reaching $1.6 billion. The company experienced $5.2 billion in loan repayments and sales, resulting in net repayments of $3.6 billion. As of December 31, 2024, the loan portfolio consisted of 130 loans with a weighted-average loan-to-value ratio of 62.6% and a weighted-average all-in yield of 3.76%. The company reported that 93% of its loans, based on net loan exposure, were performing, indicating a stable portfolio despite the challenges faced in the office sector.

Strategically, Blackstone Mortgage Trust entered into a partnership with M&T Realty Capital Corporation (MTRCC) to facilitate multifamily agency financing, which is expected to generate additional revenue through origination and servicing fees. The company also established a joint venture to invest in triple net lease properties, further diversifying its investment strategy. As of the end of 2024, the company maintained liquidity of $1.5 billion, with a debt-to-equity ratio of 3.5, down from 3.7 in the previous year, reflecting a reduction in leverage.

The filing highlighted several risk factors that could impact future performance, including fluctuations in interest rates, adverse changes in the real estate market, and potential difficulties in accessing financing. The company noted that its ability to generate income on loans could be significantly affected by these factors, which may also limit its capacity to pay dividends to stockholders. Looking ahead, Blackstone Mortgage Trust expressed a cautious outlook, emphasizing the need to adapt its investment strategy in response to evolving market conditions while aiming to maintain its REIT status and compliance with regulatory requirements.